Steps to Renew Business Trade License in Dubai
Business Trade License is among the most important requirements of doing business in Dubai. Getting a business license renewed in Dubai could be a long-process, if you are not familiar with the documentation method. Also, trade license renewal in Dubai is an annual procedure that needs to be tracked and monitored. Delay in applying for the renewal levies penalty as well as may ban the business license, freezing all business activities.
Mostly, there are three kinds of licenses issued by the Department of Economic Development in Dubai – the commercial license (for any kind of trading activity), the industrial license (for manufacturing or industrial produce) and the professional license (for skilled professionals). Licenses are allocated depending on the trade or business activity.
It’s very important to renew a license in time, and if not renewed it can cause problems such as penalties, banning of business, or some other serious issues. Before you learn about license renewal you must be aware of trade licenses. To establish a business or trade in a particular country, applicants need to have a written document that provides them the legal permission to carry out their activities. The license does not allow any trade except the one it has permitted.
Furthermore, it does not give any ownership of property on which the applicant is trading. It’s just a simple document that shows the legality of your business. If you have set up your business in Dubai, it’s imperative to get your trade license and renew it from time to time to ensure the smooth functioning of your company. You don’t have to worry about the process of trade license renewal in Dubai when you partner with local business consultants.
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Below Are the Steps to Renew Business Trade License in Dubai:
Check Your Tenancy Contract:
It is vital that your tenancy contract is valid for not less than three months from the application date. Therefore, verify your tenancy contract before applying for UAE trade license renewal. Make sure you check your tenancy contract and then apply for the Dubai trade renewal, if the due date of both the essentials are corresponding, you must process the renewal of the tenancy contract as well. In case your tenancy contract needs to be renewed as well be assured that it is attested by the EJARI.
Get the Licensing Approval:
Doing business requires approval from concerned authorities in order to be eligible for trade license renewal in Dubai. For instance, a Taxi Service company needs a consent from the Road and Transport Authority of Dubai. Likewise, a restaurant needs approval from the Food Safety Department as well as numerous municipality permissions. It is important to sort all these approvals before proceeding with the application.
Submitting The Application:
Put together the Tenancy Contract, the EJARI Attestation, the typed Renewal Form to the DED in Dubai as well as photographs of all the business partners. Submit the Dubai DED license renewal application with the right documents.
Get the Payment Voucher / Transaction Number:
Once your application for trade license renewal gets verified, the DED sends a payment voucher so you can pay the fees. The Department of Economic Development DED in Dubai will also provide you with a transaction number after submitting the application. The transaction number is essential as it is used as a reference number until you get your license.
The final step for the Dubai trade license renewal procedure is making the payment. Use the payment voucher to pay for the renewal of your business license. Pay the business license renewal fees using the payment voucher. Be cautious to renew the business trade license early, before the expiry date as delay may incur fines and other such penalties.
Dubai business license renewal is done by Dubai economic department trade license renewal department also known as DED in Dubai. Even though the renewing procedure is made easy by the DED through offline, online and auto renewal systems – getting licensing approvals; keeping a tab on renewals; assuring you have all the documents and being updated with the changing structures can be difficult at times.
Documents Required for Trade License Renewal in Dubai
The trade license you are issued is valid for only one year and must be renewed yearly. The application for renewal of the trade license must be submitted before 30 days of expiry. In case you fail to do the same, a late fee can be imposed on you, which is AED 200 per month (excluding external penalty, if any). There are almost 50 free zones in the UAE, and all have their unique requirements for the trade license renewal process. Below is the list of documents required for trade license renewal in Dubai:
For renewal of the license, it’s necessary to possess a registration certificate from Ejari. It’s compulsory to have a tenancy certificate that is approved by Ejari, or else a fine will be imposed on you.
Tenancy contract with validity
To renew the license one must have a tenancy contract that still has a validity of one month or more. For applying you must first check and verify your tenancy contract. Moreover, this contract must be confirmed by Ejari. If your contract does not have a validity of at least one month, your trade license renewal request can be rejected under legal obligations.
A copy of your old trade license
You need to attach a copy of your old license to get it renewed. You cannot apply for a trade license renewal if you don’t have the mandatory permits that allow you to carry out your business activities in the UAE.
BR/1 form is a license renewal form that must be filled and submitted to start the process. You must type a BR/1 form with the signature of existing partners and submit it to the DED for approval. All the documents must be attached to this form before submitting.
Photocopy of passport of all business partners
A passport photocopy of each business partner must be mandatorily submitted to show the stakeholders involved in your business. If you don’t have any partner you shall submit only yours.
You can submit your renewal form to the DED with all these mandatory documents. Moreover, there are two processes of applying for renewal, i.e., online and offline. You can choose any one of them at your convenience. All regulatory procedures and evaluations are performed by the governing bodies in Dubai irrespective of the application method.
What is the trade license renewal cost in Dubai?
The standard fee for trade license renewal in Dubai is anywhere between AED 8,000 to AED 15,000. Furthermore, the trade license renewal cost in Dubai depends on the jurisdiction and economic zone.
The best part is that you can avail the trade license renewal Dubai discount for accommodation fees if you have a residential Ejari. Furthermore, you can also get sizable discounts on the overall Chamber of Commerce fees.
What Can Happen if You Fail to Renew Your Trading License in the UAE?
A valid trade license is one of the crucial factors that ensure smooth company functioning in the UAE. Trade license renewal in Dubai within time saves you from the possibility of banning or blacklisting your company. Always monitor your tenancy contract and trade license for their validity. Note that if you fail to renew the license before the expiration date, it can lead to legal repercussions. Some of them include:
- Penalties: The DED in Dubai has all legal rights to impose monetary fines on ventures that don’t renew their business licenses. A penalty of AED 5,000 can be imposed on the corporations that operate without a trade license. In addition, a penalty of AED 250 per month is applicable on business owners who trade after the expiry of the trading license.
- Blacklisting business: The company that functions without a trade license or with an expired one exposes their venture to the risk of being blacklisted. This will lead to the termination of the operation of the entire company.
- Banning the company: If you operate your enterprise with an invalid trading license in the UAE, the DED can shut down your organization at any time. This is a serious consequence, and you may not be able to re-establish your enterprise in Dubai.
Renew Your Trade License in Dubai!
Trade license renewal in Dubai is easier than ever when you get in touch with Shuraa Business Setup. Our business experts will help you throughout the renewal process to ensure that everything’s in order. Be it the documents, paperwork, approval, or anything else – we got you. We ensure that our clients focus on business growth activities by assisting them right till the end.
Thus to apply or renew business license, call Shuraa Business Setup – the leading business setup service provider in UAE. We provide commercial license, professional license, industrial license and various business related requirements in Dubai and across UAE. To get your business trade license in UAE call us now!