Free zone company cancellation

Free Trade Zone Company cancellation

Canceling or terminating a Free Zone Company requires less paperwork than the setup process.

Though the lead-time to finish Free Zone Company cancellation can easily reach the time required to create it.

There can be many reasons to cancel a Free Trade Zone Company such as excessive office rent, forced office space upgrades or poor performance of the Free Trade Zone Company itself.

Here's an overview of the Free Trade Zone Company cancellation process.



 

Terminating a Free Trade Zone Company

Terminating a Free Trade Zone Company requires a signed board resolution where are partners agree to stop the Free Trade Zone Company. The Free Trade Zone is notified about the cancellation, usually through a cancellation form issued by the manager of the Free Trade Zone company. The original signed board resolution is submitted with the cancellation notice. The minimum notice due date is 1 month before renewal of the Free Trade Zone license.

The Free Trade Zone usually acknowledges reception of the cancellation by sending a Free Trade Zone termination invoice. This step has a large potential for dispute with the Free Trade Zone. There can be disagreement about the contents of the termination invoice. Till the invoice is settled, service fee's for office space and alike can continue only increasing the amount to be paid once the due date of the termination invoice is passed.

After receiving the payment for the termination invoice - the Free Trade Zone starts the legal process of terminating the company.  Usually access to office space, phone lines, PO Boxes, e-mail and other facilities are stopped once the termination invoice is shipped.

One of the termination steps is a newspaper publication - with possible processing of response or claims from the public. If all claims are verified and settled the Free Trade Zone Company is officially removed from the trade register. The Free Trade Zone issues a termination letter to all partners.

The Free Trade Zone Company termination confirmation letter can be taken to the corporate bank to cancel the corporate account as well. Remaining bank account balance is usually divided over the former partners, unless otherwise is stated in the board resolution.

If any residence visa's are issued by the Free Trade Zone, visa cancellation fee's also have to be paid.  The Free Trade Zone trade license is deleted after the owner / partner residence visa's have been canceled.
A typical start to finish Free Trade Zone cancellation can take up to 2 months.
 

Free Trade Zone cancellation delays

It's not in the interest of the Free Trade Zone to loose a Free Trade Zone registration. The first response of a company trade license cancellation can be a renewed offer for trade license renewal. The response offer can be a confirmation by the Free Trade Zone cancellation the cancellation is received, but don't take it for granted.

Insist on a written confirmation from the free trade zone regarding license cancellation - the date is of utmost importance to prevent another renewal fee / office rent to be added to the termination invoice. Track the confirmation relentlessly till it arrives.

When the termination invoice doesn't arrive in generally accepted processing times, explicitly ask for the termination invoice. If there's no swift response, make the request for the termination invoice official by using a company letterhead and submit it signed and stamped at the desk to the Free Trade Zone.

When the termination invoice includes unexpected fee's due to their own slow cancellation processing, officially object on paper with the paper trail already gathered above.|
 

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