When establishing a business in the UAE, obtaining a business license is essential, and annual trade license renewal is necessary for the smooth operation of your company. In Dubai, businesses must renew their trade licenses annually to comply with regulations.
The Department of Economic Development (DED) in Dubai oversees the trade license renewal process, which involves handling the required documentation.
The trade license renewal process in Dubai is is well-organized by the DED, prioritizing efficiency and timely completion. However, it’s important to familiarize yourself with the various types of trade licenses available in Dubai before proceeding.
However, it should be noted that a trade license only allows the specific trade activities it permits and does not confer ownership rights over any property involved in the business. By collaborating with local business setup consultants, there is no need to stress about the process of trade license renewal in Dubai.
Delay in filing a trade license renewal can lead to a penalty, a ban to the business license, or even freezing all the business activities.
If you want to tackle the process by yourself, then here is a guide consisting of everything you need to know about the Dubai trade license renewal process.
Documents Required for DED Trade License Renewal in Dubai
When renewing your trade license in Dubai, you need to prepare the necessary documents. Here is a list of the required documents:
1. Ejari Registration:
For renewal of the license, You must have a registration certificate from Ejari, which confirms your tenancy contract. Failure to possess a valid Ejari certificate may result in fines.
2. Valid Tenancy Contract:
Your tenancy contract should have a validity of at least one month or more to be eligible for trade license renewal. Ensure that your contract is verified and approved by Ejari.
3. Copy of the old Trade License:
Include a copy of your previous trade license when applying for renewal. It is a mandatory document that demonstrates your permission to conduct business activities in the UAE.
4. BR/1 form:
Fill out the BR/1 form, which is the license renewal form. This form must be completed and signed by all existing partners. Attach all other required documents to this form before submission.
5. Photocopy of Passports for all Business Partners:
Provide photocopies of the passports of all partners involved in your business. If you are the sole proprietor, submit a photocopy of your own passport.
Once you have gathered these documents, you can submit your renewal form to the Department of Economic Development (DED). The renewal process can be completed online or offline, depending on your preference. The regulatory procedures and assessments are carried out by the relevant governing bodies in Dubai, regardless of the application method chosen.
For free zone businesses in Dubai, in addition to the general trade license renewal requirements, there may be a need to provide additional documents. These can include:
- No Objection Certificate (NOC): Some free zones may require a No Objection Certificate from the relevant authority or sponsor if you are renewing your trade license.
- Certificate of Continuity of Existence or Good Standing: Free zones may request a Certificate of Continuity of Existence or Good Standing, which verifies that your business is in compliance with the regulations and has an active status. This certificate demonstrates that your business is operating smoothly and is eligible for trade license renewal.
- Current Trade License (in case of Branch of Onshore UAE Company): If your business in the free zone is a branch of an onshore UAE company, you may need to provide the current trade license of the parent company as part of the renewal process.
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Step-by-Step Guide to Renewing Your Trade License in Dubai 2023
Here is a step-by-step guide to renewing your trade license in Dubai in 2023:
1. Check your Tenancy Contract
Ensure that your tenancy contract is valid for at least one more month before proceeding with the renewal process. An invalid contract may result in the inability to renew your trade license.
2. File your Application with the DED
Complete the BR/1 form and attach all the required documents. Submit the application to the Department of Economic Development (DED) in Dubai. The DED will review your application and perform the necessary checks.
3. Receive the payment voucher
Once your application is verified, the DED will provide you with a payment voucher. This voucher outlines the amount to be paid for the renewal fees.
4. Make the payment
Proceed to make the payment as indicated on the payment voucher. Once the payment is successfully completed, the registration process will be finalized, and your trade license will be renewed.
5. Mobile app option:
Alternatively, you can use the DED mobile app to apply for the trade license renewal. The app provides a convenient way to complete the renewal process.
By following these steps, your trade license will be successfully renewed, ensuring the continuity of your business operations in Dubai.
How much does it cost to renew a trade license in Dubai?
The cost of renewing a trade license in Dubai can vary depending on several factors, including the jurisdiction and economic zone. The standard range for trade license renewal fee Dubai is typically between AED 8,000 to AED 15,000. However, it is important to note that these figures are approximate and can vary based on specific requirements and the type of business activity.
To obtain a detailed quote tailored to your individual needs and to get accurate information about trade license renewal costs in Dubai, it is recommended to consult with experts or professional consultants at Company Setup Consultants. They can provide personalized guidance and assistance based on your specific business requirements.
Trade License Renewal Grace Period Dubai
For mainland businesses in Dubai, there is a 30-day grace period for trading license renewal. Failure to renew within this period will result in fines, starting at AED 250 and potentially increasing to higher amounts. To avoid penalties, ensure your license is renewed within the grace period.
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What is the penalty if you Fail to Renew the trade license in Dubai?
Here are some of the penalties of not renewing your trade license in time:
Fines: Failure to renew your trade license in time will result in fines of various degrees. For each month the business does not renew its trade license after its validity, it will have to pay AED 250. If the business continues to perform its business activities after the expiry date of the trade license, it will be fined AED 5000.
Blacklisting: If the business continues to perform its business activities without renewing its trade license even after the fines, then the company will be blacklisted. After a period in the blacklist, if the business does not renew its trade license, then its business operations will be terminated.
Prohibition of business expansion: Without renewing the trade license, a business cannot expand or seek to start any new business activities. This will hinder any future business expansion plans they might have had.
How to check company status in Dubai?
If you forgot your trade license renewal date, you could easily check it from the consultants who helped you get the license, or from the UAE government website(https://ded.ae/service_details/en/key_renew_license).
Frequently Asked Question on Trade License Renewal
How do I renew my expired trade license in Dubai?
To renew your expired trade license in Dubai:
- Go to a Dubai Economy service center.
- Email necessary requirements to the center.
- Make the payment using available methods.
- Receive your renewed trade license.
Can we renew trade license online in Dubai?
Yes, you can renew your trade license online in Dubai. Visit the DED website, access the Business Dashboard, and click “Renew License” under My Transactions. Enter your license number and follow the prompts to renew before or after expiration.
What happens if trade license is not renewed in Dubai?
Not renewing a trade license in Dubai can result in fines: AED 5,000 for unauthorized operation, AED 250 for late renewal, and AED 2,000 for overlapping licenses. Stay updated to avoid these penalties.
How can I renew my trade license in Dubai without EJARI?
Renewing your trade license in Dubai typically requires a valid Ejari registration. However, if you do not have an Ejari or are unable to obtain one, there may be alternative options available. It is recommended to consult with the Department of Economic Development (DED) or engage with a local business setup consultant to explore the specific requirements and potential alternatives for trade license renewal without an Ejari. The DED can provide guidance on the necessary steps and documentation needed in such cases to ensure compliance with the renewal process..
Do I need Ejari for Dubai Trade License Renewal?
Yes, you will need the EJARI and a tenancy contract with at least three months of validity for the trade license renewal process. The valid tenancy contract must be attested by the Real Estate Regulatory Authority.
These are mandatory documents and if you try to renew your trade license without these, your application will be rejected, and you might even receive a fine.
How often would you actually need to Renew Trade License in Dubai?
Dubai trade license renewal occurs on a yearly basis, with a grace period of 30 days. To get it streamlined, you can get professional help from institutes like Company Setup Consultants. The company will stay on top of the timeline and keep the gears running while you focus on your business
What is the Fine for Expired Trade license in UAE?
Failing to renew your trade license in Dubai on time can lead to a penalty of AED 250. Moreover, if there is an overlap with an existing business license, a fine of AED 2000 may be imposed. To avoid these penalties and ensure uninterrupted business operations, it is crucial to adhere to the renewal deadlines diligently.
How can we help you to Renew your Dubai Trade License?
Renewing your trade license in Dubai has become incredibly convenient with the assistance of Company Setup Consultants. Our team of business setup Consultants will guide you through the entire renewal process, ensuring all the necessary documents and paperwork are in order. From handling approvals to providing comprehensive support, we take care of every aspect, allowing you to focus on growing your business. Don’t wait any longer – connect with Company Setup Consultants today and experience a hassle-free trade license renewal.
For further information and assistance on How to Do Trade License Renewal Dubai, UAE. To Speak with our Experienced Business Consultants for further information and assistance, call us at +971 582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at firstname.lastname@example.org.