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License Freezing
“Freeze your business license in Dubai with ease while staying fully compliant with UAE laws.”
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Overview of License Freezing
Sometimes businesses need to pause operations, and in such cases, you can freeze your trade license for a defined period. This option allows you to temporarily suspend business activities in the UAE while staying compliant with local laws.
In Dubai, a business license can generally be frozen for up to three years upon payment of the required government fee. For sole establishments registered with the Department of Economic Development (DED), the freeze is typically permitted for one year.
Once a license is frozen, the company must not carry out any activities, as doing so would be considered illegal. However, the license holder or shareholder still has the flexibility to establish a new company under a different license during the freeze period.
Process:
- Prepare an official request letter on the company’s letterhead, clearly stating the intention to freeze the trade license and providing valid reasons for the decision.
- Ensure that all employee visas under the company are cancelled before applying.
- Obtain a clearance letter from the Ministry of Human Resources and Emiratisation confirming that no employees are sponsored under the license and that no labour restrictions exist.
- For businesses under DED, a freezing fee of AED 2,000 per year, plus AED 210 for each overdue month since the license expiry date, must be settled at the time of application. Additionally, an inspection report from the DED must be submitted as part of the procedure.
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How Edex Can Help You Freeze Your Trade License
At Edex, our experienced PRO specialists make the license freezing process seamless. From preparing the application and handling the required payments to coordinating with government authorities, we ensure your request is completed quickly and without complications.
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