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How to Freeze a Dubai Mainland License: A Step-by-Step Guide
Freezing a Dubai mainland license can be a strategic decision for businesses needing a temporary halt in operations. Whether due to financial challenges, market changes, or internal restructuring, freezing your business license allows you to pause without fully canceling it. Here’s everything you need to know about the process, requirements, costs, and timeline.
Why Freeze Your Business License?
Freezing a business license helps you pause your operations temporarily without the need for complete cancellation. This option is useful if you’re facing temporary issues, planning a restructure, or waiting for better market conditions. It keeps your business legally compliant and ready to resume when you’re ready.
Requirements for Freezing a Dubai Mainland License
To freeze your business license in Dubai mainland, you need to meet specific requirements.
First, you must write a letter explaining why you want to freeze the license. This letter should be signed by the company owner or an authorized representative.
Second, you must cancel the residencies of all employees working for your company. This step ensures there are no active employment contracts under your business during the freeze period.
Third, the investor’s residence visa can remain active even while the company is paused. This means the investor can stay in the UAE while the business is inactive.
Lastly, if the shareholder cannot be present, a Power of Attorney (POA) must be provided. This POA should authorize someone else to complete the freezing process on behalf of the shareholder.
Costs Involved
Freezing a Dubai mainland license costs around AED 2,000. This fee covers the administrative expenses related to processing the freeze request.
Timeline for Freezing a License
The process to freeze a business license is usually instant, provided all required documents are ready and the POA (if needed) is in place. Ensuring you have all the necessary paperwork prepared will help speed up the process.
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Steps to Freeze a Dubai Mainland License
To freeze your license, start by preparing the necessary documents. Write and sign a letter from the company or owner explaining the reasons for freezing the license. Cancel all employee residencies associated with the company. Obtain a Power of Attorney if the shareholder cannot be present. Next, submit the letter, proof of employee residency cancellations, and POA (if applicable) to the relevant authorities. Pay the fee to process the license freeze. Once the documents are submitted and the fee is paid, your license will be frozen, and you will receive a confirmation from the authorities.
How Can Choose UAE Help
At Choose UAE, we specialize in helping businesses navigate the administrative processes in Dubai. Our team can assist you in freezing your Dubai mainland license smoothly and efficiently. We provide comprehensive support, ensuring all requirements are met and the process is completed quickly. Contact us today to learn how we can help you freeze your business license or meet other business needs in the UAE.
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