Step-by-Step Trade License Renewal in Dubai
Everyone operating a business in the United Arab Emirates knows a license is necessary. Depending on your company’s operations and several other variables, these licenses come in various forms, as do the regulatory agencies that grant them.
Except for the preferred company formation options and other business-specific factors, the licensing procedure and necessary processes are essentially the same for all license types.
Nevertheless, obtaining a license is not the only option because they are temporary. It is necessary to renew trade licenses, usually once a year. As a result, not renewing a license could have highly negative consequences, such as penalties, blacklisting, or even the closure of your company.
Business owners who wish to guarantee the long-term ongoing and seamless operation of their enterprise in the United Arab Emirates must be well-informed on this matter. For this reason, JSB Incorporation has put together this information on how to renew a trade license in Dubai.
Document Requirements for Trade License Renewal
You will need to gather the following list of documents to renew your trade license in Dubai:
- Photocopies of passports of all business partners
- Photocopy of your trade license
- Valid tenancy agreement
- BR/1 form
Please note that you must be registered with Ejari for the Real Estate Regulatory Authority to verify the legitimacy of your tenancy contract.
There are additional documentation requirements for businesses registered in Dubai’s free zones, including:
- No Objection Certificate (if applicable)
- If appropriate, the original or notarized copy of the Certificate of Continuity of Existence, Good Standing, or Current Trade License for an Onshore UAE Company branch.
Steps of the Trade License Renewal Process
To renew a trade license in Dubai, UAE, you must adhere to the guidelines established by the appropriate authorities. This is a general overview of the method:
Documentation
Collect all the documentation needed to renew a trading license and ensure it complies with the relevant laws.
Application submission
Fill out the application and submit it, together with the required documentation, to the Department of Economic Development (DED) or the relevant free zone authority where your company is registered.
Fee payment
Renew your trade license by paying the relevant costs. Depending on the operations you do under your trade license and the jurisdiction in which your business operates, the cost of the license may differ significantly.
Inspection (if applicable)
Some companies might need to be inspected by the appropriate authorities to ensure they are following the rules. Schedule the inspection appropriately if one is necessary.
Approval and Issuance
You will receive your renewed trade license if the authorities authorize the renewal after reviewing the application and confirming that all conditions have been completed.
The DED has introduced the Auto-Renewal Service, an additional method of renewing your trade license. To initiate automatic renewal, send an SMS with the number of your expired license to 6969. Then, use the provided payment link to pay the determined amount of required renewal fees. You will receive an email with the receipt once the payment is received.
The legal structure and business types, jurisdiction, and any current regulatory modifications may all affect the particular needs and procedures. Seeking expert advice is advised to guarantee a seamless trade license renewal procedure in Dubai.
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Office No 20, 4th Floor, Al Moosa Tower 2,
Sheikh Zayed Road Dubai, United Arab Emirates P.O. Box 27614.
Get In touch
+971 4 824 4842
info@jsbincorporation.com
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Consequences of Not Renewing Your Trade License in Dubai
There are several consequences if you don’t renew your trade license in Dubai. First and foremost, in order to legally operate a business in Dubai, one must get a valid trade license. You face penalties, fines, or even legal action if you manage your business illegally by failing to renew your license.
Furthermore, failing to renew your trade license may have a detrimental effect on how your business operates. You can have trouble carrying out business activities such as opening bank accounts, signing contracts, or getting required permissions if you don’t have a legal license.
Your abilities to function efficiently may be restricted, and you may lose the respect and confidence of clients and business associates as a result.
Additionally, Dubai’s government authorities keep a close eye on companies to make sure that license requirements are being followed. You might be subject to inspections, audits, or investigations if it is discovered that you are not operating under a legal license.
These procedures could interfere with your business’s operations and result in further fines or penalties, such as:
Financial Penalties:
The Department of Economic Development in Dubai has the authority to impose fines on individuals who operate under an expired commercial license and neglect to renew it. Companies operating without a trade license may be fined AED 5,000 by the DED and AED 250 for each month that they fail to do so.
Company Blacklisting:
Operating a business with an expired license might result in you being blacklisted by authorities and business partners, which can ultimately lead to the closure of your company.
Company Termination:
- The DED has the right to shut down your company at any time if you don’t follow the rules for renewing your trade license and running your business illegally. Additionally, in this situation, you might never be allowed to reestablish your business in Dubai.
To learn the exact consequences of not renewing your trade license in Dubai, it is always beneficial to speak with legal professionals or relevant government organizations.
Trade License Renewal Costs in Dubai
The total cost of renewing your trade license in Dubai depends on several aspects, such as the size, business activity, and legal entity type of your organization. This will determine if more approvals are needed. The outcome will impact the total cost of renewing your license.
The total amount usually falls between AED 8,000 and AED 15,000 in Dubai and includes both the licensing fee and other charges related to the renewal procedure. The following is a list of possible fees that you might have to pay:
- AED 10 for the license registration fee
- AED 10 for the knowledge dirham fee
- AED 10 for the innovation dirham fee
- AED 350 for brand advertisement
- AED 50 for a service request form
- From AED 1,000 to AED 3,000 for a foreign trade name
- AED 15,000 for activities under a General Trading license
- AED 15,000 for activities in the investment field
- AED 10,000 for activities in the construction field
- AED 25,000 for the business center fee
- AED 1070 for the trade license fee
- AED 300 for Dubai Chamber fees
Consult professionals in the field or relevant government organizations for information about the costs of renewing your trade license. This information is specific to your business structure.
Additional Information
If you’re unsure of when your trade license has expired for renewal, you can check the UAE government’s website to find out its current status. Go there to see when your license expires and get ready for the steps involved in renewing your license before.
It is crucial to be aware that a trade license in mainland Dubai has a grace period of 30 days for renewal. After this period expires, you will be subject to further penalties. These penalties include a monthly fine for operating a business with an expired license, which can increase over time.
Summary
Make sure to monitor the status of your trade license. Renew it on time to ensure your Dubai business functions smoothly. It is best to get ready for this process beforehand to make it easier.
JSB Incorporation provides effective and affordable trade license renewal services in Dubai. We offer assistance with the renewal procedure and professional advice on how your company’s configuration may affect license renewal costs. Contact our team right now to easily renew your trade license!
Book your free consultation call today with the experts of JSB Incorporation to get started.
FAQs
Yes, Dubai's DED e-Services and app allow online renewal for convenience.
The cost varies depending on the business type and additional approvals required.
Late renewal can lead to fines, penalties, and possible suspension of business activities.
Yes, a valid Ejari tenancy contract with at least one month of validity is mandatory.
No, you must renew your tenancy contract first before proceeding with the renewal.
Don't miss out on this limited-time opportunity!
We'd Love To Hear From You
contact us
Find us Here
Office No 20, 4th Floor, Al Moosa Tower 2,
Sheikh Zayed Road Dubai, United Arab Emirates P.O. Box 27614.
Get In touch
+971 4 824 4842
info@jsbincorporation.com