The concept of Voluntary Suspension of Licence of a DMCC Company
The Registrar may agree to a Company’s request to voluntarily suspend its Licence, subject to the relevant Company complying with the requirements of the Company Regulations and the Licensing Rules.
- The company will remain in the DMCC Register of Companies, but its licence(s) will be suspended by the registrar for a period approved by the company. To be eligible for the Voluntary Suspension of Licence, DMCC Company must hold a valid licence for at least twelve (12) months prior to the proposed suspension date and have an active registration.
- Branches located within the DMCC Free Zone are not subject to dormancy.
- DMCC Companies holding multiple active licenses may apply for voluntary suspension of licenses across all licenses.
- Dormancy may last for a minimum of twelve (12) months but not more than thirty-six (36) months in the lifetime of the company.
** DMCC Company can choose a term of 12, 24 or 36 months. Fees are based on the duration chosen. Licenses that are already in dormant status will be ineligible for Voluntary Suspension of Licences. There is, however, the possibility of extending the existing dormancy period until the maximum allowed.
- DMCC Companies cannot request a suspension of their licence if there is an active company sanction.
Upon approval of the application, the License status will be updated as dormant, and all services, excluding the following, will be stopped on the Company account:
- Extending the suspension period (only when there is still time left)
- Reinstatement of the license (dormant company).
- Application for company dissolution.
- Refund for portal balance.
Effects of Dormancy
Upon suspension of company licence(s), the company cannot trade in or out of the DMCC Free Zone until the company’s licence is reactivated by the Registrar.
- A company with a dormant license cannot maintain visas and leases. All leases and visas must be cancelled.
- All company bank accounts must be closed or suspended.
- The registered manager shall resign as soon as the dormancy becomes effective, but the company’s directors and secretary will continue to be in office.
- After the company account is updated and the license status becomes dormant, all existing Company portal users will be deactivated. Shareholders or directors will be assigned access to the Company portal account at the beginning of the service request process .
The end of the dormancy period
- A reminder will be sent to the Company 90, 60, & 30 days before expiry of the existing dormancy period.
- An Authority may terminate any dormant licence if the Company fails to submit any of the following applications post-dormancy:
- Extending an existing dormancy period (if the total allowable period remains)
- Reinstatement of license (Dormant Company) and appointment of new Manager.
- Request for voluntary termination of the licence(s) (requires further submission of a termination application for the company if all dormant licences are cancelled).