Trade License Cancellation Cost in Dubai A Complete Guide (2026)
If you’re planning to close your business setup in the UAE, one of the most important things you must understand is the trade license cancellation process and the associated costs, especially in Dubai. Whether you’re a startup founder, freelancer, or a business owner winding up your company, this guide explains everything from the costs involved, the step-by-step process, fees in different Emirates, and frequently asked questions in simple language.
Let’s begin with the basics.
What Is the Trade License Cancellation Cost in Dubai?
The trade license cancellation cost in Dubai refers to the government fees and related charges you must pay to officially close your business and cancel your trade license. These costs vary depending on your business type, whether it’s a mainland company, free zone, FZE Company, FZCO company or an LLC.
Here’s a quick breakdown of common fees involved:
- Trade License Cancellation Fee – charged by the Dubai authority (Department of Economy and Tourism).
- Company Dissolution or Liquidation Fee – applies if your company needs formal closure (e.g., LLC).
- Publication or Advertisement Fees – for legal notices in newspapers (mainland companies).
- Visa Cancellation Costs – if you have employees and sponsored visas.
- PRO Service Charges – optional fees if you use a consultant for the process.
Typical range: from around AED 3,000 to AED 7,000, depending on your company, visa count, and whether liquidation is needed.
Why It’s Important to Cancel a Trade License
If your company stops operations, but you don’t cancel the trade license:
- Licences continue to be legally active.
- Fines accumulate for non-renewal.
- You can be liable for taxes, visas, and utility obligations.
Proper cancellation prevents legal trouble and financial penalties.
Trade License Cancellation Online Dubai
Yes, in Dubai, you can often begin the trade license cancellation online through the relevant government portal (for mainland companies via DET portals or free zone authority systems). Online cancellation saves time and helps you track the process digitally.
Steps for online cancellation:
- Log in to the Dubai government portal.
- Upload required documents (e.g., license copy, passport, Emirates ID).
- Pay the government cancellation fees.
- Submit visa cancellation confirmations and clearances.
Some steps, like providing newspaper publication proofs or notarised resolutions, might still require physical paperwork for some company types.
Trade License Cancellation in Sharjah
If you are cancelling your trade license in Sharjah (mainland), the process is similar to Dubai but handled by the Sharjah Economic Development Department (SEDD).
Fees in Sharjah
According to recent information:
- License cancellation charges vary (approx. AED 150–3,000).
- Publishing cancellation notice: about AED 350.
- If the license has expired, additional penalties apply based on the time lapsed.
Documents like bank clearances, employee visa cancellation proofs, and shareholder resolutions may be required for Sharjah as well.
Trade License Cancellation Fees Sharjah
Sharjah fees can vary widely depending on:
- Whether the license has expired.
- Outstanding penalties.
- Clearance requirements.
Typical Sharjah costs:
| Service | Approx. Fee (AED) |
| Publish cancellation notice | ~350 AED |
| License cancellation | 150–3,000 AED |
| Penalties (expired license) | 500–1,500+ AED |
These are general estimates always confirmed with SEDD before applying.
DED License Cancellation Process
If your business license is issued by the Dubai Economic Department (DED) (now part of DET), here’s a simple explanation of the process:
- Board Resolution & Liquidator Appointment (if applicable) – especially for companies requiring formal closure.
- Cancel Visas and Labour Cards – all employee visas need cancellation.
- Clearances – from utility providers (DEWA, Etisalat/Du), immigration, MoHRE, and bank account closure.
- Publish Liquidation Notice – in two local newspapers for mainland companies.
- Submit Final Documents – including trade license copy, clearances, passports, and resolutions.
- Pay Fees – cancellation and associated charges.
- Receive Cancellation Certificate – official confirmation that your trade license is cancelled.
Time taken: Mainland cancellation usually takes about 40–60 days, while free zone cancellations can take just 1–3 weeks.
How to Cancel a Trade License in Abu Dhabi
Abu Dhabi trade license cancellation is managed by the Abu Dhabi Department of Economic Development (ADDED) or the respective free zone authority.
Steps include:
- Clear visas and labour cards.
- Get utility & bank clearances.
- Submit the cancellation application online or to the authority.
- Pay fees.
- Receive the official cancellation certificate.
Different free zones and mainland rules may apply, so check with ADDED or your free zone portal for exact mandates.
Freezing Trade License in Dubai
If you’re not ready to fully close your UAE business but want to pause operations and avoid penalties, you can consider freezing your trade license.
What does this mean?
- The license stays registered but inactive.
- No business activity or visa operations can continue.
- You don’t have to liquidate and can restart within the freeze period.
Key details:
- Licenses can be frozen for up to 3 years in Dubai.
- Fees vary depending on your business type and authority.
- All visas must be cancelled, and salaries/benefits paid before freezing.
Freezing can be a great option if you plan to resume operations later.
License Status Under Admin Cancellation UAE
Sometimes you might check your license status and find it shows “admin cancellation”.
This usually means the licensing authority has flagged the license for cancellation due to non-renewal, non-compliance, or administrative actions. Often, it indicates:
- Your license is being processed for cancellation.
- You have unpaid fines/obligations.
- Authorities changed the status because the renewal didn’t happen.
To resolve this, you should contact the licensing authority, pay fines (if any), and complete cancellation formalities.
How to Cancel IIc License in Dubai
If you have an IIc license in Dubai (an industrial or specialised category), the cancellation process is similar to other trade licenses but may involve additional steps based on your license class.
General steps include:
- Clear all sponsor obligations.
- Cancel visas tied to the IIc license.
- Submit the cancellation application via your issuing authority.
- Provide any technical clearances if required.
In most cases, the process is aligned with the standard trade license cancellation process.
How Much to Cancel a Trade License in Dubai?
The total cost depends on your company’s legal type and clearance requirements.
Typical cost breakdown (approx.):
- Trade License Cancellation Fee: about AED 1,020
- Company Dissolution Fee: about AED 2,500–2,520
- Newspaper Ads: AED 500–800 (mainland only)
- Visa Cancellation: AED 100–300 per visa
- PRO Services: optional, varies by provider
Expected total: around AED 3,000–7,000 or more based on specifics like number of visas and additional clearances.
Can I Cancel My Trade License?
Yes, if your business is no longer operating and you have no pending obligations (like visas or bills), you can cancel your trade license. The process includes clearances and settlement of all dues before final submission.
What Is the Cancellation Fee?
The main cancellation fee is typically charged by the licensing authority:
- In Dubai (DET) it’s about AED 1,020 for the cancellation fee.
- Other fees apply for dissolution, advertising, and clearances.
How to Cancel a License in Dubai?
Here’s the process in simple terms:
- Cancel employee visas and labour cards.
- Get NOCs/clearances from utilities, landlord, and bank.
- Publish a legal notice (mainland only).
- Upload documents & apply via online portal.
- Pay government fees.
- Receive the trade license cancellation certificate.
This completes the official closure.
Conclusion
Cancelling a trade license in Dubai (and across the UAE) can seem complex, but when broken down into clear steps with the right documentation and planning, it becomes manageable. The trade license cancellation cost in Dubai varies depending on your company type, visa status, and required clearances. Knowing the fees, process, and alternative options like freezing your license will help you make the best decision for your business.
If you want expert help with trade license cancellation, company closure, freezing license, or business advisory services in the UAE, FairwayBiz is here to guide you from start to finish.
