What to do if the free zone refused to cancel partner visa for myself and an employee due to license expiry?

Dear Fatehi,

I understand and acknowledge your summary of the outstanding compliance issues.

However, I may not have fully conveyed the issue. This issue is a "catch-22" situation created by SPCFZ's current stance.

As I understand it from SPCFZ's own general terms and conditions, individual visa cancellations under a company are typically required before the company's trade license can be formally cancelled or the company de-registered.

The problem is that SPCFZ is now refusing to process my partner visa cancellation (and the employee visa cancellation) because of these outstanding company-level issues. This creates an irresolvable loop.

We cannot proceed with visa cancellations (a step usually required for, or part of, company closure/rectification) because of problems that would normally be addressed during the company closure or license cancellation process itself.

As a 50% partner in an FZC, my liability is limited, and I am personally unable to settle all these substantial financial liabilities accumulated by the company to clear the path for visa cancellation in the way that SPCFZ is demanding.

The inability to cancel my current visa is preventing me from accepting a new job offer. This employment is vital as it would provide the financial means to begin addressing some of these liabilities.

This deadlock has also directly caused the employee to incur significant overstay fines, which is a source of great distress for her, and also for me, as my visa is expiring soon.

I need a way to delink the individual visa cancellations from the requirement to immediately settle all of the company's outstanding debts and compliance issues personally, especially when SPCFZ's own procedures seem to contradict their current demands.

As a 50% partner, your limited liability protects you from being personally responsible for the company’s debts beyond your shareholding, but it doesn't free you from the liabilities.

However, SPCFZ's refusal to process the visa cancellations, due to the unresolved company matters, is preventing you from securing new employment, which is essential for addressing these liabilities, and is also causing distress for the employee due to overstay fines.

We may also explore options for negotiating temporary visa solutions, such as seeking a separate processing of the visa cancellations or requesting conditional cancellations.

Additionally, addressing the employee's overstay fines with SPCFZ and reviewing the company’s financial position for an appropriate resolution could help move the process forward.

Thank you, Nada.

I have emailed these departments and will follow up with a visit if things do not proceed.

You're welcome, dear.

Should you require legal assistance, please contact us by phone or email.

Best regards,

Nada Elmawi