Trade license cancellation is a procedure by which a business requests the relevant government authority to cancel its trade license. There are considerable causations for a business to consent to cancelation of trade license, for instance, a business might deem to get a new license for a different business activity or the need to exclude a business activity. According to Dubai Multi Commodities Centre (DMCC) Authority’s 2020 Company Regulations, a business can apply to cancel its trade license at any given time in the DMCC. Companies ought to abide to the codified procedure for cancelation of trade licenses. In this regard, it is highly advised to seek expert consultation from approved DMCC liquidators to ensure a thorough and seamless process of canceling a trade license in DMCC.
Procedure for Trade License Cancellation in DMCC
Every licensed business in the DMCC is registered with the DMCC member portal on which one can apply for cancelation of your trade license. The following steps can lead you to submit a cancelation application to the DMCC authority:
Step One: Application filing through the member portal.
Primarily, you need to log into the DMCC member portal and open company services. There, you will find the License option which will lead you to the License Amendment option. On this juncture, you will find the License Termination option which will lead you to the application filing interface.
Step Two: Fill in the requested information.
Now, when you are on the application interface, you will have to fill in all the required fields and enter the right information that the DMCC portal asks for. Make sure to fill in the information section correctly to avoid rejection of the application from the DMCC authority.
Step Three: Upload the required original documents.
Upload all original documents required by the DMCC portal in the format they allow. Even if you complete the application submission process, the DMCC authority can still require additional documents from you at any time. The documents might include a liquidation letter from DMCC approved liquidators.
Step Four: Publishing of license termination by the respective authority.
Within the two weeks (14 days), the DMCC authority will publish the termination of your license. This will attest that the authority looked upon your application and approved it.
Step Five: Issuance of digital copies of the license cancelation letter.
Lastly, the DMCC authority will issue digital copies of the letter of license cancelation to the applicant. However, you need to receive the original copy of the cancelation letter from the DMCC authority in person. By following the above steps, you can get your trade license canceled. However, the cancellation process is quite new to most businesses and they find it difficult. The solution to this is to outsource liquidation services in DMCC to avoid confusion and mistakes.
Rules that Apply in DMCC Liquidation
According to Dubai Multi commodities Centre Authority’s 2020 Company Regulations, the following rules apply if a business wants DMCC license termination;
- The DMCC authority will only approve the license termination application of a company if it complies with the DMCC licensing rules and DMCC company regulations. The authority has the right to reject the application on the following basis:
- Even if a company gets its license terminated, it still remains on the DMCC Companies Register but on a suspension status for the period requested by the company and approved by the DMCC authority.
- A company in DMCC is allowed to apply for license termination only if it has held its trade license for at least 12 months before the date of suspension application. It means that a company cannot cancel its license without holding it for at least a year.
- Dormancy or suspension only applies to the parent business and not its subsidiaries or branches in the DMCC.
- If a company in DMCC is working under more than one registered license and wants to terminate all licensees, then it needs to individually apply for the cancellation of each license.
- If a company wants to terminate its license temporarily for a period of time, the DMCC company regulations allow it to temporarily suspend the license for at least 1 year or a maximum of 3 years. A company cannot suspend its trade license for less than 12 months or more than 3 consecutive years in the DMCC.
- For temporary cancelation of a trade license, a company can choose to do so for 1 year, 2 years, or 3 years. These are defined periods for which a company in DMCC can cancel its trade license temporarily.
- If a company has canceled a trade license for a limited period of time, it cannot apply again for cancellation but only apply to extend the period of dormancy. The total period of dormancy cannot exceed 3 years’ limit.
- If a company is going through penalties and sanctions, then it cannot apply for trade license termination in DMCC.
- Lastly, if a company’s application for cancellation of its trade license is approved by the DMCC authority, it can no longer carry on its services or business functions and has to cease action immediately.
Choose the Best DMCC Approved Liquidators
The process of canceling a Trade License in DMCC is often a complex procedure to embark on, since it is shrouded with convoluted and specified legal formalities. Thus, it is highly advised to seek expert consultation from approved DMCC liquidators like Farahat and co to ensure a thorough and seamless process of canceling a trade license in DMCC. So, do not hesitate to contact team of experts will be happy to efficiently guide you through the process.