Temporary freezing
of a company in the UAE
from 1 day and 690 USD
A direct service from a licensed corporate provider helps you save up to 50% of your budget and ensures full compliance with all legal requirements under UAE company law.
Temporary license suspension is a strategic step for businesses that allows operations to be paused without a full closure. This process can only be initiated after the license has expired. An application to the Department of Economy and Tourism (DED) can be submitted without penalties within one month after the company’s renewal date.
Reduced maintenance costs:
During a period when the business is temporarily inactive, license suspension allows for significant cost reductions, including rent and administrative expenses.
Avoiding violations and fines:
Suspending operations through license freezing helps avoid legal violations and related fines that may occur if a company remains inactive without renewing its license.
Business preservation:
Maintain your company’s legal status without liquidation or closure.
Flexibility for new ventures:
Owners or partners can start new businesses under their name without restrictions while the license is suspended.
Flexibility to resume operations:
A business can be reactivated at any time within three years from the date of license suspension, providing owners with flexibility in planning and executing future steps.
Thus, license suspension is an effective tool for managing a business during temporary inactivity, ensuring financial savings and legal compliance.
Grace period:
You have one month after the renewal date to apply for license suspension without penalties. After this period, a fine of AED 210 per month is charged, and engaging in unlicensed business activities may result in much more severe penalties.
Activity restrictions:
During the suspension period, any commercial activity, including online sales, is prohibited. The office must remain closed, and there is no need to renew Ejary. Conducting business during suspension will result in legal violations and penalties.
Visa requirements:
All employment visas issued by your company must be canceled; however, business partners holding partner or investor visas may retain theirs.
Government fee:
The application fee for license suspension is AED 2,020, and the suspension is valid for up to three years.
Note:
If the company holds other specialized licenses (for example, RERA), they will automatically become invalid if the main license is not renewed.
The license suspension process is usually completed instantly if all conditions are met and all documents and the Power of Attorney (if required) are prepared in advance.
*Government fee is charged separately.
*Notarization of Power of Attorney is charged separately.
Cancellation of work visas:
The partner must personally cancel all work visas. A Power of Attorney cannot be used for this process. The investor’s or partner’s own visa may remain active.
Preparation of a resolution by the company’s director (or board of directors)
Preparation and notarization of a Power of Attorney for submitting the application to the Department of Economic Development
Preparation of an explanatory letter stating the purpose and reasons for the license suspension
Providing a copy of the current trade license
Preparation of the relevant application to the Department of Economic Development (or another regulatory authority)
Payment of the government fee for suspension — AED 2,020 per year, plus AED 210 for each overdue month (if applicable)
No matter where you are in the world, we make registering your business easy and efficient. Our clients are located in: India, Pakistan, China, the United Kingdom, France, Spain, the United States, Switzerland, Austria, Finland, Germany, Mexico, Australia, Thailand, Cyprus, Vietnam, Bangladesh, South Korea, Indonesia, Montenegro, Argentina, Chile, Brazil, South Africa, Canada, Kazakhstan, Russia, Moldova, and Turkey.
