There are several reasons to leave a business; it might be failing, it might have run out of funds, or you might find that a better opportunity lies elsewhere and you need to retrieve your invested capital. For each of these reasons for exiting a business, there are different official procedures that must be followed.
If the business is to be sold, the trade licence will need to be amended in order to reflect the changes in ownership. On the other hand, if the business is being closed altogether, all of the assets must be liquidated and any debts must be cleared before the trade licence can be cancelled. If you are planning on cancelling a trade licence, remember that you will need NOCs from several different government ministries before starting the cancellation process at the Department of Economic Development.
The notary public contract then needs to be submitted to the Department of Economic Development along with all of the previously submitted documents. Only then will the business’s licence be amended to show the new ownership.
Rather than selling the whole of the business, it is possible to sell shares of the business. This process is similar to selling a business in that it requires an amendment to the trade licence. On top of the procedures and documents outlined above, the Department of Economic Development also requires written approval from each of the business’s partners.
Licence Cancellation – Department of Economic DevelopmentSale of Business – Department of Economic DevelopmentBusinesses for Sale in Dubai – BusinessesForSale.comValuating Your Business – All BusinessList of Chartered Accountants – indexuae.comDocuments and Procedure for Sale of Business – Department of Economic DevelopmentNotary Public services – Dubai CourtsAdding a Partner (Selling Shares) – Department of Economic DevelopmentLicence Amendment – Department of Economic Development