Trade license

How to Do Trade License Renewal in Dubai

trade license renewal dubai

If you already have a business in the UAE, then you know the importance of the trade license renewal. All businesses here need the trade license to perform their business activities, be it trading goods, offering services, consultancies, etc.

That is why it is important to know about the trade license renewal Dubai.

There are some severe penalties for not renewing your trade license in time. In the worst-case scenario, your company might face closure. However, you do not need to worry about that with the help of Company Setup consultants.

We will ensure that you are reminded when your Dubai trade license renewal is due. We will deal with all the relevant trade license renewal governing bodies and ensure that your business is always licensed to perform your selected business activities.

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.

However, it can be a lengthy process if you are not familiar with trade license renewal or Dubai trade license in general. Trade license renewal Dubai requires a bit of document processing. The papers and trade license fees and processing time may differ based on which zone you are applying from. Reading this might raise a lot of questions and concerns.

That is why you have numerous business setup companies who specialize in set up and renewal of trade license in Dubai. Hence, one of the most efficient and reliable ways to get your renewal going would be to take professional help. If you are not sure who to trust, you can definitely reach out to Company Setup Dubai.

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.

What is the Process of Trade License Renewal Dubai?

The Dubai trade license renewal process is very easy if you have a team of experts helping you through the process. The Company Setup experts have helped countless businesses renew their trade licenses over the years.

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If you are new to the renewal process it is highly suggested to get help from professionals in order to avoid expensive mistakes.

Here are the steps in the trade license renewal process in Dubai:

  • Ensure the validity of your tenancy agreement
  • Get the necessary approvals
  • Apply for the trade license renewal
  • Submit the required documents
  • Complete the license renewal payment

1. Ensure the validity of your Tenancy Agreement:

Your tenancy agreement must have a validity of at least three months before you can apply for the renewal of your trade license. If your tenancy agreement does not have a minimum of three months of validity left, then you will have to renew your tenancy agreement and get your EJARI attested before you can apply for the trade license renewal. That is why it is advised not to wait until the last moment to renew your trade license.

2. Get the Necessary Approvals:

Depending on the type of business you are running and the business activities you are performing, you need to get several approvals before applying for the trade license renewal.

For example, if you are running a beauty salon in Dubai, then you will need approvals from the Planning Section and the Health & Safety Division of the Dubai Municipality.

3. Apply for the Trade License Renewal:

After you have attained the necessary approvals and ensured the validity of your tenancy agreement, you can go ahead and apply for the license renewal process to begin.

You will need to renew your trade license from the Department of Economic Development in Dubai. You need to fill a form that they will provide during the license renewal process.

4. Submit the Required Documents:

After you have filled the application form that the DED provided, you will need to submit it with the required documents. Here are the documents that you will need to submit to the DED for the license renewal process:

  • Tenancy agreement with at least three months validity.
  • The certificate of EJARI registration.
  • A typed BR/1 form.
  • Copies of the passports of all the business partners.
  • Copy of the existing trade license.

5. Complete the license renewal payment:

After you have submitted all the documents, the DED will issue a payment voucher to you. You need to complete the payment that is connected with the payment voucher. The Dubai trade license renewal is completed after you make the payment.

What are the Documents Required for Trade License Renewal in Dubai?

For regulatory purposes, you will have to provide some documents when renewing your business trade license from the Department of Economic Development in Dubai. Here are the documents you will require to renew your trade license:

  • Attested tenancy contract.
  • Filled up trade license renewal form.
  • Photocopy of your existing trade license.
  • Passport copies of all the owners of the business.
  • No Objection Certificate is required if it is applicable to your business.

Some other documents might be required depending on the business activities you are pursuing in Dubai.

Trade License Renewal for a Mainland Company

The Trade License renewal for a Mainland Company may appear easy, but it can become complicated when it involves approvals from various public departments other than DED (Department of Economic Development). Normally the following documents are required:

  1. Current License Copy
  2. Tenancy Contract & Ejari Certificate
  3. Depending on your activity, certain documents are required for external department approvals.
  4. The time duration for the renewal of a normal trading license normally takes 1-2 working days. If additional external approvals are
    required, the process may take 7 working days.
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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 license you availed. Here are a few mandatory documents required for a trade license renewal in a free zone:

 Trade License Renewal for a Free Zone Company
Trade license copy or original document depending on the free zoneSome free zones demand an audit report
O. box confirmation renewalPassport 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.

Types of Trade Licenses Issued in Dubai

To run a business anywhere in the UAE, you need to get a valid trade license that will allow the business activities that you will perform here. The type of trade license you choose lets you legally perform those business activities in Dubai. Performing any business-related activities in the UAE without a valid trade license is considered illegal here.

Here are three popular types of trade licenses issued in Dubai:

1. Commercial Trade License: The commercial trade license is for businesses that want to pursue business activities related to trading goods inside or outside the country.

2. Professional Trade License: The professional trade license is for businesses that want to pursue business activities related to providing services to clients from the UAE.

3. Industrial Trade License: The industrial trade license is for businesses that want to pursue business activities related to the manufacture or production of goods and selling those goods.

The Department of Economic Development in Dubai (DED) is the governing body that is in charge of handling the license registration processes here. According to the number of trade licenses provided by the DED till now, the professional trade license is the most popular trade license in Dubai.

What if the Trade License is not Renewed on Time?

The trade license is one of the most important aspects of owning a business in the UAE. It is the sole document that allows you to perform your business activities in the UAE. As a result, the failure to renew the trade license before its validity expires will result in severe penalties including the closure of your business.

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.

Frequently Asked Question on Trade License Renewal

How can I renew my trade license in Dubai without EJARI?

It is not possible to renew your trade license in Dubai without EJARI. Beware that some business consultancy in Dubai offers really cheap business setup solutions where they do not register your EJARI. However, the tenancy agreement and EJARI are mandatory for any business set up in the UAE.

As a result, you will face a hefty fine if you do not have an EJARI. So, if you already have a trade license in Dubai without an EJARI, then your first step will be to register for EJARI. Afterward, you can proceed with your trade license renewal process in Dubai.

The first step of the trade license renewal process is to check the validity of your tenancy agreement as it needs to have at least one month of validity left if you want to renew your trade license in Dubai. So, if you do not have the required validity left, then you will need to renew your tenancy agreement first.

After that, the second step is to complete the BR/1 form from the Department of Economic Development in Dubai. Then you need to submit the application form with all the necessary documents like the EJARI, tenancy contract, current license copy, etc.

Once the application is verified, the Department of Economic Development in Dubai will send a payment voucher for the renewal fee. After you complete the payment connected to the payment voucher, your renewal process is complete.

What happens if a trade license expires in Dubai?

There are three penalties that you can face if you fail to renew your trade license in Dubai in time. The first and least problematic is that you can face penalties. Firstly, you will face a penalty of AED 5,000 for running your business without a trade license in Dubai.

Secondly, you will have to pay AED 250 per month for performing your business activities without renewing your trade license in Dubai. Alternatively, it is cheaper to obtain a trade license in Dubai and renew it after expiry.

The second and more troublesome penalty is that your business can get blacklisted for performing your business activities without renewing your trade license. Additionally, this creates a bad reputation for your company and is bad for your brand image.

To clarify, when your company is blacklisted, you cannot perform any operational or business activities anymore. However, your company will still be registered in the country, and you can continue your business activities after paying the fines and renewing your business trade license.

Lastly, your company can get banned for continuing too long without a trade license in Dubai. Additionally, once your company is banned, you will need to start a new company and obtain a brand-new business trade license if you want to continue doing business in the UAE.

As a result, it is always a better idea to obtain or renew your trade license in Dubai before this happens. You can easily obtain or renew your business trade license in Dubai with the help of Company Setup experts.

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Is there a Grace Period for Trade License Renewal?

There is a 30-days grace period after the expiration of your trade license where you can still perform your business activities without facing repercussions. However, this grace period of 30 days is offered to give you time to renew your trade license in Dubai.

As a result, if you have already reached the grace period, then it is highly suggested that you make the license renewal your highest priority before doing anything else.

Usually, it takes a while to complete the renewal process. As a result, you should start your renewal process before entering the grace period. However, some people think that you can get an extra month on the next renewal date if you use the grace period.

But this is not the case, because your new license will start from the date when the grace period starts. So, waiting for the last moment to renew your trade license in the UAE is not worth the risk.

You can easily renew your trade license in the UAE with the help of Company Setup Consultants. They have the necessary expertise and connections required to obtain your license in the shortest time possible. Additionally, getting help from Company Setup experts always pays off.

This is because we will ensure that you do not face any setbacks that would otherwise cost both time and money. Last but not the least, you can also expect our assistance if you face any obstacles during the daily operations of your business.

What are the Documents Required for Trade License Renewal in Dubai?

First and foremost, you will need to have a valid EJARI and tenancy contract for your trade license renewal in Dubai. Additionally, you will need to ensure that you have at least one month of validity left on your tenancy contract to be eligible for trade license renewal in Dubai.

This is because the tenancy agreement and EJARI are mandatory documents required by all businesses in the UAE. Businesses with virtual offices will also have to provide their tenancy agreement and EJARI.

The second document you need is a copy of your old trade license. That is why it is suggested that you make several copies of your trade license as soon as you get one or when you renew it.

Additionally, the trade license is the most important document of your business since it allows you to perform your business activities in Dubai. You need to complete the BR/1 form and submit it with a copy of your trade license during the renewal process.

Last but not the least, you will need to provide copies of the passports of all the shareholders in the business during the trade license renewal process in Dubai. However, if your business does not have multiple shareholders or partners, then a copy of your passport only will be sufficient.

After submitting all these documents to the Department of Economic Development in Dubai, they will verify the documents and provide a payment voucher to you for the renewal fees.

How much does it cost to renew trade license in Dubai?

The cost of the license renewal will depend on a lot of factors. For starters, it will depend on whether you are tackling the trade license renewal process alone or with the help of professionals. Then it will depend on some other factors like your business activities, tenancy agreement validity, etc.

Any errors in the renewal process will also drive your costs up. To give you an idea, you can expect to pay anywhere in the ballpark from AED 8000 to AED 15000.

Do I need Ejari for 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 Dubai. The company will stay on top of the timeline and keep the gears running while you focus on your business

How do I Renew my Expired Trade License in Dubai?

The Department of Economic Development in Dubai is the governing body that handles trade license renewal applications here. The renewal process is largely the same for free zones and the mainland.

Here is the entire process of trade license renewal summarized in three steps:

1. Get your documents in order: As we have mentioned before, ensure that your tenancy agreement has at least months of validity left before applying for the trade license renewal.

2. Fill up the renewal application form: Fill up the trade license renewal form provided by the DED and submit all the required documents to them. Accept the payment voucher that they will provide you.

3. Pay the required fees: Finally, you need to complete the payment connected to the payment voucher that the DED provided to you and your trade license renewal process is complete.

How to understand if your tenancy contract is valid?

Simply put, your tenancy contract must be valid for at least one month, and signed by Ejari. If you have a tenancy contract validity that is longer than one month, that’s even better!

How can we help you to Dubai Trade License Renewal?

We know dealing with the authorities in a foreign country can be tough, that is where we come in to help you. With the help of Company Setup experts, you can focus on other important aspects of your business and leave the trade license renewal in our hands.

Even if the process does not seem too complex to you, some prior knowledge and experience are required to complete the entire process without any hiccups.

Remember that the UAE, Dubai trade license renewal process is only straightforward when you complete all the steps without any errors and mistakes. Any faults in your application process will cause some expensive setbacks.

Besides the Dubai trade license renewal process, the Company Setup professionals are always ready to help you in any aspect of your business. We can help you with immigration services, visas, opening corporate bank accounts, completing government formalities, etc.

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 +971582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.

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