Three major penalties on an expired business license in Dubai

Posted on 27 June 2017 Author: Published in: Trade Licenses Published by: Shuraa Business Setup

Business establishments in UAE, be it a mainland business, freezone institution or an offshore organization – any of these forms of company are allowed to regulate, provided they hold a Business Trade License or constitutional documents validating the entity as well as their existence. On an annual basis, these business entities are required to follow the practice of trade license renewal in Dubai as well as around UAE.

The Dubai Economic Development (DED) offers several options to renew trade license in Dubai. Also, business setup companies in Dubai offer effective and easy ways to renew business license. However, there are instances when companies still do not renew business license and attract several penalties.

While there are a large number of issues that could be raised because of non-renewal of a business license, the major three are as follows:

Monetary Penalties

Economic Development in Dubai is an authority that monitors the process of licensing a company. The authority has made hi-tech implications such as online and SMS renewal system due to which businessmen can renew trade license in Dubai, within no time. However, at times when businessmen do not renew their license they are imposed with several forfeits such as – a business practiced without a license could be penalized with AED 5000, while failure to renew a license within the specified time-limit could cost AED 250, also an additional office for an existing license without permission fines the entity with AED 2000 (fines are noted as per the DED website)

Black Listing of Company

When companies continue their business activity without renewing trade license, there is a fair possibility that the company could be blacklisted. Blacklisting of a company would stop all the transactional activates the company is dealing with; nullify the visas and sponsors under the company and there is also a possibility that the investor or the businessman would have to leave the country.

Restrict Expansion of Business

Even a small business license renewal is taken place year on year, occasionally businessmen lose a track of when the license had to be renewed and a month’s delay could be worse because these small businesses in future are not allowed to expand under these circumstances. It is extensively important for businesses to have a clean record if there are plans for expansion or rather suspend or liquidate the entity.

Renew trade license in UAE instantaneously at Shuraa Business Setup. With us, you can keep a track of your renewal dates, get the documentation done for your business trade license renewal process as well as get your business license renewed in Dubai or any other part of UAE, within no time!

Shuraa Business Setup guides you through your business related formalities, company formations services and more. For more information, visit our business centers, call us or drop in a quick inquiry and we will get back to you with the needful.

Showing 5 Comments
  • Wonderful information, thanks a lot for sharing kind of information. Your website gives the best and the most interesting information. Thanks a ton once again, Regards,

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  • Gladys says : Reply

    Please advise the penalty of an expired license (non operation). If we want to close it what would be the process and what are the possible financial involvement.

    • Dear Gladys, Thank you for inquiring with Shuraa. The penalty charges for a regular company under a mainland business setup is 200 AED per month, however, if you have been non-operational for more than 12 months, this could further cost you the license renewal cost inclusive of the penalty. Further, the process of closure depends on the company's shareholding structure and the region or zone where the company was established. To guide you better, we request you to book a free appointment with us or just send us a quick inquiry with your contact details and we can sort the renewal or liquidation of your company at the best price.

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