How to waive or reduce the penalty for my expired company license and cancel it?

Dear Questioner,

Thank you for your message.

Regarding your expired free zone license and the accrued penalties, please note that most free zone authorities require all outstanding dues to be settled before allowing cancellation of the license or related residence visas.

However, in certain cases, it is possible to request a reduction or waiver of the penalty by submitting a formal application explaining the reasons for the delay, along with any supporting documents.

We would be happy to assist you in preparing and submitting this request and in exploring the most cost-effective way to resolve the matter.

Kindly let us know the name of the free zone, and we will advise you on the next steps accordingly.

Best regards,

Mohammed Salah

Legal Consultant

Dear Client,

Thank you for reaching out and providing the details of your situation.

Regarding the expired free zone business license and the accrued penalties, it is common for free zone authorities to impose fines for delayed cancellations.

Unfortunately, these penalties are typically mandatory and must be settled before proceeding with license cancellation or visa cancellation.

However, some free zones may consider requests for penalty waivers or reductions on a case-by-case basis, especially if there are valid mitigating circumstances.

I recommend formally submitting a written request to the free zone authority explaining your situation and requesting leniency or a payment plan.

I would be happy to assist you in drafting this request and liaising with the relevant authorities to explore all possible options for minimizing your costs.

Please let me know a convenient time to discuss this further or if you require immediate assistance.

Best regards

Dear Inquirer,

Thank you for reaching out.

In free zones, penalties for expired licenses can accumulate quickly, and cancellation processes—including visa cancellation—are usually blocked until outstanding dues are settled.

However, some free zones do allow for partial waivers or reductions under specific conditions, especially if a formal request is submitted with justification.

We recommend acting promptly to avoid further accrual and to explore all available options for minimizing the cost.

Our legal team can assist you in negotiating with the free zone authority and preparing the necessary waiver request.

Please feel free to book a consultation through our website or authorize Future Vision for Advocacy and Legal Consultancy to represent you and resolve this matter efficiently.

Best regards.

Hello,

Many free zones do offer a mechanism to request a fine reduction or waiver under specific circumstances, especially if you can show that the delay was unintentional or due to extenuating reasons.

You should formally submit a written request for fine reduction or a penalty waiver application, along with supporting documents (such as a medical certificate, financial hardship, or other evidence of legitimate reasons for the delay).

The final decision is at the discretion of the free zone’s management, but they do sometimes accommodate such requests to support entrepreneurs.

Thank you for your message and for reaching out regarding your free zone license matter.

In cases where a trade license has expired and penalties have accumulated, most free zones impose mandatory settlement of these dues prior to proceeding with license cancellation or visa termination.

However, some free zone authorities may entertain a penalty waiver or reduction request, especially if there are valid reasons such as lack of activity, non-renewal due to force majeure, or administrative oversight.

To explore this option, we would typically prepare and submit a formal legal petition or request supported by relevant justifications and documentation.

In many cases, with the right representation, we’ve been able to negotiate significant reductions or complete waivers of penalties.

I would be pleased to assist you with this process, from drafting the necessary submissions to representing your case with the free zone authority and ensuring the matter is closed with minimal cost and legal exposure.

Please feel free to contact me directly on WhatsApp or by phone so we can discuss your situation in more detail and initiate the next steps.

Warm regards,

Suhail Rana

Advocate & Legal Consultant

Thank you for reaching out and I completely understand how stressful it can be when your trade license has expired, fines are accumulating, and you're unable to cancel your visa as a result.

You're not alone in this we've supported many clients in exactly the same situation.

Here at Lex Resolvo, we do things differently. We're not just another corporate service provider; we're a UAE-based legal consultancy with a dedicated team of specialized lawyers, and we have formal partnership agreements with over 40 free zones across the country.

That means we don’t just follow the system, we work directly with the right people inside the free zone authorities to help you explore real, practical solutions.

Once we know which free zone your license is under, we can look into options such as:

Negotiating discounts on the fines;

Proposing installment payment plans to ease the financial burden;

Or securing a fine reduction if you're willing to renew the license and regularize your status, including visa support.

While every case is unique and these matters can be quite sensitive and challenging, resolving the issue through negotiation and a cooperative approach with the free zone is often more efficient and cost-effective than going down the dispute resolution route, which can be time-consuming and far more expensive.

Our role doesn’t end with solving the current issue; we’re here to advise you legally going forward so you can avoid falling into the same trap in the future.

Having legal oversight on your compliance can save you significant time, money, and risk down the road.

You're welcome to contact us via WhatsApp for quick, confidential guidance. We’ll be happy to listen to your situation, review your documents, and provide a roadmap for how to fix it, step by step.

Looking forward to helping you close this chapter and move forward with peace of mind.

Warm regards,

Dear Inquirer

We are pleased to serve you and address your inquiries.

You can submit a request in this regard to the competent authority in order to consider the fines.

Contact us via email or call our offices in Dubai or Sharjah.

Jasim Al Haddad Advocates & Legal Consultants