Terminating your licence at Jafza

Closing a company or shutting down operations can be a difficult situation for any business. Before considering terminating your company, it is always advisable to speak to your account manager and gain insights on how Jafza can support your business.

If the decision is inevitable, you are required to inform Jafza 3 months prior to the termination of operations in the event that the business is leasing a warehouse, office, showroom, or retail facility and 6 months prior to the termination of operations if a plot of land is being leased from Jafza. A prior notice of termination of operations is required to make sure all formalities are completed in time.

Partial termination of a lease or licence

If you are only planning to cancel the licence at Jafza, the following are applicable:

1. A licence can only be independently cancelled when a client has more than one licence—for example, if you have trading and industrial licences and you wish to terminate the trading licence only.
2. A request letter from the licence holder requesting the termination of the licence
3. All outstanding fees and amounts are to be settled.
4. A licence termination fee of AED 1,500. A fine of AED 1,000 per month will be imposed if the licence has already expired.

If you are only planning to cancel your Jafza lease, the following are applicable:

1. A lease can only be independently cancelled if the client has more than one lease or facility—for example, if you have a warehouse and an office space leased and you wish to terminate the office lease.
2. A request letter from the leaseholder requesting the termination of the lease 
3. All outstanding fees and amounts are to be settled.
4. The client must return the keys to the facility to the Lease and Licence Section at Jafza.
5. The client will be required to contact the Admin Section at Jafza regarding visa access.
6. Additional rent will be applicable for the maintenance of the vacated facility.

Mandatory requirements by all companies to follow for complete termination of operations

• An exit interview must be held with the Customer Service Department at Jafza, located at Jafza 15.
• Complete the De-Registration form
  • The owner must sign the De-Registration form in person at the registration desk at the Jafza head office.
  • All certificates, including the company formation certificate, share certificate, audit report, must be returned to the Registration section at Jafza.
  • The company auditors must submit a Liquidation Report at the Registration section at Jafza.
• Along with the De-Registration form, the company must also submit the Lease Termination Form along with the keys to the facility.
• A clearance letter from the Dubai Electricity and Water Authority (DEWA) must be submitted for any company that has a lease for a warehouse, office, LIU, plot, retail facility, or showroom. A clearance letter or a settlement of the final bill from DEWA is required to be submitted to the Registration section.
• The Termination Section of Jafza will request telecommunication providers to submit a report on any outstanding charges. If such charges are due, the company will be asked to complete the procedure with the relevant provider before proceeding.
• RTA clearance is required in case the lease of a plot of land is held.

Specific requirements for FZCO and FZE companies

Further to the mandatory requirements, the following are applicable for companies registered under the FZCO or FZE company formation:

• Clearance from Finance: The company must obtain a clearance from the Finance Department of Jafza regarding any dues.
• Visa Clearance: The company must cancel or transfer all visas of employees, directors, or shareholders under the Jafza sponsorship. The licence holder will be the last visa to be cancelled after approval from the Termination Team of Jafza provides approval.
• Customs Clearance: The Termination Section will request Dubai Customs to provide a report on any dues outstanding as well as a clearance certificate. In the event that dues are pending, the company will be required to settle all outstanding dues with Dubai Customs before proceeding.
• A termination fee of AED 6,500 will be charged for the cancellation of the lease and licence.
  • If the licence is already expired, a fine of AED 1,000 per month will be imposed additionally.
• The Termination Section will advertise and publish the announcement of cancellation in local newspapers.

Specific requirements for Branch and Oversees companies

Further to the mandatory requirements, the following are applicable for companies registered under the Branch of a company formation:

• A board resolution from the parent company, notarized by Notary Public and attested by the UAE Embassy stating that the brand in Jebel Ali needs to be closed.
• Clearance from Finance: The company must obtain a clearance letter from the Finance Department of Jafza regarding any dues.
• Visa Clearance: The company must cancel or transfer all visas of employees, directors, or shareholders under the Jafza sponsorship. The licence holder will be the last visa to be cancelled after approval from the Termination Team of Jafza provides approval.
• Customs Clearance: The Termination Section will request Dubai Customs to provide a report on any dues outstanding as well as a clearance certificate. In the event that dues are pending, the company will be required to settle all outstanding dues with Dubai Customs before proceeding.
• A termination fee of AED 1,500 will be charged for the cancellation of the lease and licence.
  • If the licence is already expired, a fine of AED 1,000 per month will be imposed additionally.
• The Termination Section will advertise and publish the announcement of cancellation in local newspapers.

Need Help?

Jafza is here to help and serve its customers. Speak to your account manager or approach the customer service desk at Jafza for any questions regarding the termination of your lease, licence, or company operations.