To commence a business in Dubai, one must have a valid trade license. Indulging in business activities without possessing a valid trading license is illegal in Dubai. The government entity in charge of the issue and renewal of a trade license is the Department of Economic Development. The DED issues three types of trade licenses in Dubai that are listed below:
- Industrial license (issued for industrial activities or production)
- Commercial license (issued for activities related to trading)
- Professional license (issued for service-oriented activities)
Acquiring and holding a trade license is not a one-and-done venture as license holders must renew it within the given period. Therefore,trade license renewal in Dubai holds equal importance as acquiring a new one. Any delay in renewing the trade license might lead to financial penalties and other repercussions. You should connect with the local business consultants to avoid such unwanted business scenarios.
How to renew a trade license online in Dubai?
Trade license renewal in Dubai online is straightforward and super convenient. The process for renewing a trade license online is the same for mainland establishments and free zones companies. The only difference would be the concerned authority that issues the renewed license.
If your company is in Dubai mainland, you should submit it to the Department of Economic Development, or if your business is in a free zone, you should submit the renewal application to the relevant free zone authority. You can do it through different online portals. If you’re new to the process, given below are the steps for trade license renewal in Dubai:
1. Have a valid tenancy contract
The first step to renew your license is to make sure that your business has a valid tenancy contract with a minimum validity of one month when applying for renewal. You will only be allowed to apply for the license renewal if there’s a validity of at least one month on the tenancy contract. Also, the tenancy contract should be attested to by Ejari. If the tenancy contract doesn’t meet any of the mentioned criteria, your trade license isn’t eligible for renewal.
2. Apply for license renewal
To operate a business in Dubai, one needs approval from the various concerned authorities. Therefore, you have to apply for license renewal to the DED with all the required documents. One can apply for license renewal through several modes such as e-services, mobile applications, authorized service centers, and law firms.
3. Receive the transaction number/payment voucher
After submitting the license renewal application along with the documents, the authority provides you a payment voucher or a transaction number. The transaction number can be used as a reference number until you don’t get your renewed license. Once you receive the payment voucher, you can start the payment procedure. The legal advisors at Shuraa help you with the same, so you can focus on other activities related to business growth and expansion.
4. Submit the renewal fees
The final step is to make the payment of fees with the connected payment voucher. You will be issued with a renewed trade license after you’ve settled all the outstanding payments. That’s it. You’re done with all the steps involved for trade license renewal in Dubai online.
Trade license renewal fees in Dubai
The cost of renewing a trade license in Dubai depends on numerous factors such as your business’s location, setup type, and size. Moreover, it also depends on the type of license you hold. The renewal fee isn’t the same for all trading licenses in the UAE as each caters to a specific business sector.
A business trade license in Dubai can cost you anything from AED 15,000 to AED 50,000. The renewal process is relatively cheaper and costs around AED 8,000 to AED 15,000, based on the license type. Note that the validity of a renewed trade license in one year.
What are the penalties imposed if a trade license isn’t renewed?
The government of Dubai and the DED follow a strict policy with regards to licensing and renewal. You’re bound to face legal consequences if you don’t renew your trade license within the specified timeframe.
Failing to renew a trade license could lead to fines and penalties to your company and could even result in the termination of your trade license. Daily fines are imposed from the date of expiry of the license. The various kinds of penalties imposed by the authorities if you fail to get your trade license renewal in Dubai done include:
- Monetary penalties: if an enterprise is operating without a valid trading license, it could attract fines up to AED 5,000. Furthermore, a delay in trade license renewal in Dubai could result in a fine of AED 250 per month.
- Blacklisting of the company: not renewing your trade license within the specified time could result in the blacklisting of your business. This simply means that your business would be shut down completely. Furthermore, when a business is blacklisted, all of its transactional capabilities are blocked and the visas of the company’s employees are deemed invalid. Being blacklisted also has a major impact on the sponsors as they may withdraw their critical sponsorship from your company. Moreover, there’s also a possibility that the owner and shareholders may be deported from the country in case further malpractices are found.
- Restriction on expansion: if you’re operating a business without a trading license or with an expired one, any operations related to the expansion of your company would be immediately restricted. Setting up a business takes tireless hours of work, time, and a significant financial investment. Therefore, trade license renewal in Dubai should always be done within time to ensure risk-free business functioning in the UAE.
Documents required to renew a trade license online in Dubai Mainland
Online trade license renewal for an enterprise established in the mainland region, you’ll require the documents listed below:
- Registration certificate attested by Ejari (online registration system by the real estate regulatory agency)
- Tenancy contract with validity
- A copy of your old trade license
- Photocopies of the passports of all business partners
- Typed BR/1 form
Documents required to renew a trade license online in Dubai free zones
For trade license renewal in Dubai online for a business entity established in any of the free zones, you’ll need to submit the following documents:
- Trade license copy or original document (depending on the free zone)
- Audit reports
- P.O box confirmation renewal
- Passport photocopies of the shareholders
- Other documents depending on your company’s business activities and the free zone
Consult with Shuraa
Foreign investors need to take care of several business aspects, and it can sometimes become too hectic to be handled alone. Therefore, you should collaborate with Shuraa Business Setup, and we’ll remove all your business worries in the UAE. Be it trade license renewal in Dubai, banking, paperwork, or anything else – we’ll handle it all. The business experts at Shuraa offer end-to-end assistance to our clients, so they don’t face any hurdles during business incorporation activities. Get in touch with us today!
Click here to book a free consultation with our experts and know more about trade license renewal in Dubai or call at +971 44081900. You can also send a WhatsApp message at +971 50 777 5554. For email assistance, mail your query at info@Shuraa.com.
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