Dubai is one of the countries that has made it compulsory for every firm and organization to have a business license. For the same reason, annual trade license renewal in Dubai is compulsory. This process is under the supervision of the Department of Economic Development in Dubai. The license renewing process is straightforward, but you might need to deal with a lot of documentation.
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 setup consultants.
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 required documents:
1. Ejari registration
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.
2. 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.
3. 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.
4. BR/1 form
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.
5. 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.
Process to Renew a Trade License in Dubai
To renew a trade license in Dubai, businesses need to submit an application to the Department of Economic Development (DED), either online through the Invest in Dubai or Dubai Economy and Tourism (DET) e-services portal, or through authorized service providers. The process involves verifying information, uploading necessary documents (like the tenancy contract, license copy, and partner passport copies), and paying the renewal fees.
Steps for Renewal:
- Access the DED Portal: Log in to the DED e-services portal using your UAE Pass or DED account credentials.
- Locate Renewal Section: Navigate to the “My Transactions” section and click on “Renew License”.
- Enter License Details: Specify the license number you wish to renew.
- Verify Information & Upload Documents: Review the license details and upload required documents such as a copy of the current trade license, valid tenancy contract (Ejari), and passport copies of all partners.
- Submit Application: Once all information is verified and documents are uploaded, submit the renewal application.
- Pay Renewal Fees: After the application is processed and approved, you will receive a payment voucher for the renewal fees. Pay the fees through the provided channels.
- Receive Renewed License: Upon successful payment, your trade license will be renewed, and a digital copy of the renewed license will be sent to your registered email address.
Important Considerations:
- Ensure your tenancy contract is valid for at least one month beyond the renewal date.
- Keep your Ejari registration certificate valid to avoid issues during renewal.
- Consider using the Invest in Dubai platform or service centers for convenient renewal options. or you can get in touch with Shuraa Business Setup Consultants.
How Much Does It Cost to Renew a Trade License in Dubai?
The cost of renewing a trade license in Dubai varies depending on the business type and jurisdiction but generally ranges from AED 8,000* to AED 15,000*. Consulting with business setup consultants can help minimize costs and ensure a smooth renewal process.
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 happens if you will not be renewing your trade license in Dubai?
A valid trade license is one of the critical factors that ensure smooth business functioning in the UAE. Trade license renewal in time saves you from the possibility of banning or blacklisting your company. Always keep a check on your tenancy contract and trade license. 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 businesses that don’t renew their trade licenses. A penalty of AED 5,000 can be imposed on the institutions that operate without a trade license. Furthermore, a penalty of AED 250 per month is applicable on traders who trade after the expiry of the trading license.
- Blacklisting business: The company that operates without a trade license or with an expired one exposes their business 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 company at any time. This is a serious consequence, and you may not be able to re-establish your enterprise in Dubai.
How Shuraa Can Help to Renew Your Trade License
Renewing your trade license in Dubai is now quicker and simpler than ever with Shuraa Business Setup! Our expert business consultants guide you through every step—from document preparation to approvals—ensuring a seamless renewal process.
Let us handle the paperwork while you focus on growing your business. With Shuraa’s end-to-end support, your license renewal is in trusted hands.
Why wait? Get in touch today!
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