Wings 9 Management & Consultancies
About License Freezing:
If your business needs to temporarily halt operations, you can freeze your UAE mainland trade license for up to three years. Discover how to freeze your license and navigate the process smoothly.
When planning to pause your business in the UAE, freezing your business license is the ideal solution. Licenses can be frozen for up to three years with the payment of a freezing fee, while sole establishments registered with the DED can freeze their licenses for up to one year.
Once a license is frozen, the company must cease all operations, as continuing to operate would be illegal. However, the owner of a frozen license or a shareholder may start a new business by applying for a new license in their name.
Process
- Draft a letter on your corporate letterhead requesting the temporary freezing of the license. Ensure the letter clearly outlines the reasons and justifications for this decision.
- Cancel all employment visas.
- Acquire a confirmation letter from the Ministry of Human Resources and Emiratisation, verifying that there are no sponsored individuals associated with the license and that no labor restrictions apply to it.
- For the DED, pay a freezing fee of AED 2,000 per year, plus AED 210 for each month overdue since the license expiry date, following the submission of your application. Additionally, provide a report from the DED's inspection division.
How Wings9 Can Assist You in Freezing Your Trade License
Our team of dedicated and experienced PROs will guide you through the entire license freezing process, from assisting with the application and fee payment to coordinating with government authorities.