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License Freezing

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About License Freezing:

License freezing is a process that allows businesses to temporarily suspend their operations without having to cancel their trade license. This can be beneficial in various situations, such as economic downturns, restructuring, or other unforeseen circumstances.

Freezing a business license in the UAE offers a practical solution for businesses facing temporary challenges, restructuring, or other circumstances that necessitate a pause in operations. By following the outlined process, businesses can ensure compliance with UAE regulations while benefiting from cost savings and flexibility.

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Process of Freezing a Business License

  • Evaluate Eligibility

    • Confirm that your business is eligible for license freezing. This option is available in most free zones and mainland jurisdictions but may have specific criteria.
  • Prepare Required Documents

    • Gather the necessary documents for the application:
      • Application Form or Request Letter: A formal request stating the reasons for freezing the license.
      • Current Trade License Copy
      • Passport Copies of Shareholders and Directors
      • No Objection Certificate (NOC) from Sponsors (if applicable)
      • Lease Agreement and Ejari Certificate (for businesses in Dubai, if required)
  • Submit Application

    • Submit the application form or request letter along with the required documents to the relevant authority (Department of Economic Development (DED) for mainland companies, or the respective free zone authority).
  • Pay Fees

    • Pay the applicable freezing fees. These fees vary depending on the jurisdiction and the duration of the freeze.
  • Approval and Confirmation

    • The authority will review the application. If approved, you will receive a confirmation letter or certificate indicating the license is frozen for the specified period.
  • Compliance During Freeze Period

    • Ensure compliance with any conditions set by the authority during the freeze period. This may include maintaining a valid lease agreement or submitting periodic reports.

Calculate your business setup cost

Calculating the cost of setting up a business in a UAE Free Zone with the specific Free Zone authority for the most accurate and up-to-date costs.
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