Questions & Answers
How to cancel a trade license after business failure
I hold a professional trade license with a 15% local partner. However, I have closed the company in early 2019 and have not renewed the trade license for the past two years.
The business was not good and hence I did not pay the sponsor fees for two and a half years. I want to close the company officially and also cancel all the visas linked to the company.
The local sponsor is not cooperating and he is asking for the past three years' sponsor fees, which I don't have. Please guide me on how to cancel and return to India without any legal hassle with the local sponsor.
Please advise!
Hello,
We highly recommend you not to leave the country having any outstanding payments or uncancelled licenses under your name. Since the late fees and penalties may accrue.
Considering the fact, you are requested to pay the sponsor fees for the last three years. It is recommended to achieve an understanding with the local shareholder in order to avoid any legal consequences in the future.
If you had a memorandum with the local shareholder concerning the distribution of losses or consequences of drop off in the business of the company, you may use it as a helpful tool to resolve the issue in an amicable way.
You may approach the Department of Economic Development in order to inquire about the fees on the license and procedure of license cancellation.
