In the UAE, it is essential to renew your trade license before it expires. There is a penalty for every day the trade license is not renewed. Failure to renew your trade license in Dubai will result in a ban on all licenses held by the shareholders, freezing all of their business activities.
Dubai business Advisors will remind you well in advance of your trade license’s (or other document’s) expiry date. This value-added service keeps your business protected from bans and penalties.
Expired trade license in Dubai
As per the rules and regulations set out by the Economic Development Authority of Dubai, the DED, an entity conducting its operations without a permit would be fined AED 5000.
An amount of AED 250 would be charged extra against failure to renew the license in the timeline provided by DED.
Similarly, an establishment overlapping an existing business license can make the investor liable for a fine of AED 2000.
Dubai trade license renewal grace period
There is a 30-day grace period after the expiry of the trade license, during which the company can either renew the trade license or cancel it.
Trade License Renewal in Dubai Requirements
Trade License Renewal for a Mainland Company
The Trade License renewal for a Mainland Company may appear easy but can be at times complicated especially when it involves approvals from various public departments other than DED (Department of Economic Development).
Normally the following documents are required:
- Current License Copy
- Tenancy Contract & Ejari Certificate
- Depending on your activity, certain documents are required for external department approvals.
The time duration for the renewal of a normal trading license takes normally 1-2 working days. If additional external approvals are required, the process may take 7 working days.
Trade License Renewal for a Free Zone Company
The trade license renewal for a Free Zone Business Setup varies from free zone to free zone and the type of package you have availed.
Below, there are a few mandatory documents required for a trade license renewal in a free zone:
- Trade license copy or original document depending on the free zone*
- Some free zones demand an audit report
- P.O. box confirmation renewal
- Passport copy of the shareholder.
- Other documents depending on your activity and the chosen free zone.
The time duration for the trade license renewal depends on the free zone and can be anything from 1 – 3 working days.
- If the shareholder is another corporate or a foreign company than the renewed trade license of the parent copy is also required.
Why renew your Trade License with Dubai Business Advisors?
Dubai Business Advisors are committed to saving you time, money, and energy when renewing your trade license. Our streamlined PRO services have assisted our satisfied UAE clients in renewing their trade licenses for over 17 years!
FAQs:
Q1: How do I renew my trade license in Dubai?
A: You will require the following documents:
- Typed license renewal form (BR/1)
- Copy of a valid Tenancy Contract
- Copy of your trade license (business license)
- Ejari certificate
- Passport copies of all partners
Q2: How often do I have to renew my trade license in Dubai?
A: The trade license must be renewed on a yearly basis with a grace period of 30 days.
Dubai Business Advisors can assist you with renewing your license on time and with no hassle every year!
Q3: How do I know if my tenancy contract is still valid?
A: Your tenancy contract must be valid for at least 1 month (the longer the better), it must also be attested by Ejari.
Q4: How can I apply for a trade license renewal?
A: Dubai Business Advisors are authorized license renewal service providers, we will be glad to answer your queries and assist you across every step of the process.
Q5: How do I know if my business activity requires external approvals outside of the DED?
A: We can provide you with the details, for example:
- Transportation activities require RTA (Dubai Road and Transport Authority) approval
- Medical activities require MoHP (Ministry of Health and Prevention) approvals
Q6: Which penalties will my business be subject to should I not renew my license?
A: As mentioned above, your company may be subject to compounding fines as well as being blacklisted from renewing you license or setting up new businesses.
To avoid the risk of renewal fines and penalties, appoint a corporate service provider to process your yearly license renewals.
