How to sell your business in Dubai.
Running a business is not an easy task. Ensuring that all the odds and ends are tied down and everything is in top running shape for maximum output, at the same time keeping customers as well as employees happy is a tough set of things to handle. On top of that you would need to ensure that your funds are in good shape.
While Dubai is an excellent place to start a business venture, there are conditions that lead to a business coming up for sale. This could be due to one or more of the following reasons:
- The business has run out of funds
- The business is failing
- The business owner has found a more suitable opportunity elsewhere
- The business owner wants to sell of only a portion of the shares
The official procedure to be followed varies depending on which of the earlier mentioned condition exists.
In case of a sale of business, the trade license has to be amended, while if the business has failed and has to be wrapped up completely then the assets have to be liquidated and outstanding debt cleared before one goes about canceling the trade license.
Even in order to cancel the trade license, No Objection Certificates (NOC) are required from various government departments before the process of license cancellation can be started with the Department of Economic Development (DED).
Before going about selling the business, it’s best to consult with experts on what the valuation of the business should be, the approvals to be sought from DED, and another government ministry depending on the type of business and terms and conditions of the sale of business. The approvals that are needed are the same as those required for starting a new business. The original license, and the passport of the buyer are needed along with special approvals from a different ministry. The Dubai court then needs to notarize the new contract without which the DED won’t accept the contract as valid.
After all this, the new contract along with the original documentation has to be submitted to DED, only after that does the new ownership reflect in the revised license.
The process is cumbersome and lengthy, and compliance is mandatory. The risk of punishment for non-compliance is high and it’s best to take the help of experts who have been in this business and understand the processes inside out. Do write in to us at firstname.lastname@example.org for more details.