Canceling your Freezone company
It is not the nicest subject to start with, but everything comes to an end and sometimes it concerns your company in the UAE; your 100% personally owned Freezone company.
Canceling a company is not that much different from the Netherlands and Belgium, apart from missing a very complicated tax component. It is best to compare your Freezone company with a private limited company. And a private limited company in the Netherlands or Belgium cannot be allowed to go unmanaged for a few years without serious consequences with the tax authorities. Likewise, a Freezone company cannot go unmanaged for a couple of years without serious consequences with the Freezone authorities.
If you want to cancel your license, you need to present the original license paper and the Establishment Card, together with the NOC’s the No Objection Certificates of:
Du or Etisalad
maintenance of the Freezone
and all visas must be canceled / canceled by the Freezone.
Deposits you might get back after canceling your Freezone company
And canceling the visa has advantages! After all, if you had staff employed, you have made a deposit of 1 month’s salary + airline ticket per employee. And if that employee canceled his visa and left the country, you will get that deposit back. And that’s a bonus. And it can be quite a bit of money. You may be able to use part of that money to pay the costs of the company closure. The cheapest company cancellation will cost you around 6,000 AED in service fees for the Freezone. We take care of all the work involved for a similar amount.
Contrary to popular belief, closing down a business is a fairly streamlined process for most Freezones. The Freezones are not waiting for a whole bunch of half or not maintained companies so they do what they can to make sure that all companies that they have in their register are actual companies.
If you are unable to travel to the UAE or if you really do not feel like it, you can, of course, hand over a Power of Attorney (a ‘volmacht’ in proper Dutch) and we will arrange it. The costs depend on the type of company. Send an email to email@example.com and he will make an estimate.
You can always say no to the estimate. But one thing really cannot do … leave your Freezone behind like it never existed and hope it will solve itself somehow magically. Because that is not going to happen.
You have an advantage if you stay in the UAE. You then have nothing to do with ‘stakingswinstbelasting’ which roughly translates to cancellation-profit-tax and in practice translates to endless debates with accountants and tax-authorities about how much profit you’ve actually made, and how much tax you should pay over that profit. If you’ve run a profit and you stay in the UAE, that profit is yours to keep.