Affidavit Of Business Closure Template for the United Arab Emirates

When you decide to close your business in the United Arab Emirates, you need to complete a formal legal process that includes filing an Affidavit of Business Closure. This sworn statement serves as official notification to UAE authorities that your business has ceased operations and fulfills your legal obligations under local commercial law. The document must be properly executed and submitted to various government departments as part of the complete de-registration process.

When do you need this document?

You must file an Affidavit of Business Closure whenever you permanently cease business operations in the UAE, regardless of your business structure. This applies whether you operate a sole proprietorship, partnership, limited liability company, or corporation. The affidavit is required when voluntarily dissolving your business, when completing a merger or acquisition that results in business termination, or when authorities have ordered business closure. You'll also need this document if you're relocating your business outside the UAE or converting your business structure in a way that terminates the existing legal entity.

Key legal considerations

Your affidavit must include comprehensive business identification details, including your trade license number, legal business name, and registered address. You must declare the effective closure date and provide clear reasons for termination. Critical financial declarations are required, confirming that all debts, liabilities, and tax obligations have been settled. You must also verify that all employee contracts have been properly terminated in accordance with UAE Labor Law, including payment of end-of-service benefits. The document requires detailed information about asset distribution and any ongoing legal proceedings. Additionally, you must confirm compliance with all regulatory requirements and obtain clearances from relevant authorities before filing.

Legal requirements in United Arab Emirates

Under UAE Federal Commercial Companies Law No. 2 of 2015, your Affidavit of Business Closure must be notarized and authenticated according to UAE Federal Law No. 10 of 1992. You must submit the document to the Department of Economic Development in your emirate, along with supporting documentation including trade license cancellation, tax clearance certificates, and labor clearance from the Ministry of Human Resources and Emiratisation. The Federal Tax Authority requires confirmation of VAT de-registration and settlement of all tax obligations. Your local Chamber of Commerce must also receive notification of business closure. The affidavit must be signed by authorized signatories as registered with your business license, and if you're a company, board resolutions authorizing closure must accompany the filing. All submissions must be made within specified timeframes following your actual cessation of business activities to avoid penalties.