Operating in Dubai presents both thrilling opportunities, and it is a necessary action to adhere to the local regulations. The renewal of your trade license is one of the most crucial legal requirements. If you are wondering how to renew trade license in Dubai? This detailed guide explains everything you need to know — from required documents to step-by-step procedures, costs, and penalties for delays.
At Company Setup Consultants, we assist entrepreneurs and businesses to take care of every detail of establishing a company and complying with government requirements, including a hassle-free trade license renewal in Dubai.
Table of Contents
What is a Trade License in Dubai?
A trade license is a legal document that is granted by the Department of Economic Development (now the Department of Economy and Tourism) as a means of the business to experience a legal operation in Dubai.
All companies, be it trading, manufacturing or professional services are required to possess a valid license. Licenses are of various categories:
- Commercial license– Trades.
- Industrial license – In manufacturing and industrial business.
- Professional license – In the case of service providers, professionals, and consultancies.
Businesses cannot exist legally without a trade license, sign contracts, open bank accounts or employ employees. This is the reason why it is necessary to renew it in time.
Why Trade License Renewal is Important
It is not merely a waste of time to renew your trade license. It also has a number of advantages that ensure a comfortable running of business:
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Legal Compliance
A new license demonstrates that your business is in compliance with the rules of DET and it is not subject to non-compliance penalties.
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Uninterrupted Operations
Without renewal, interruption of your business could occur, and it could impact the revenues and growth.
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Reputation and Trust
Businesses that are lawfully operated are trusted by clients, partners and banks. Renewal ensures that it has credibility in the market.
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Access to Services
Banking, leasing of property and signing of contracts – all a viable trade license is needed.
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Visa Sponsorship
Without a valid trade license you cannot renew employee visas, or dependent visas.
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Business Growth
An authentic license will enable you to spread out business, establish branches and venture into new markets.
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Government Incentives
As a licensed person actively you can benefit by the incentives and support programs initiated by the UAE government.
Documents Required for Trade License Renewal in Dubai
Prior to making the renewal request, the following are documents that should be ready before you do so:
- Ejari Registration Certificate– Shows that your tenancy agreement is registered at RERA.
- Valid Tenancy Contract– It shall have to be running at least 1 month prior to the time of renewal.
- Copy of Current Trade License– Displays your current business and license information.
- BR/1 Renewal Form -official form of the DED on trade license renewal.
- Copies of Passports of all business partners– This is needed to verify the identity of owners or partners.
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Step-by-Step Process: How to Renew Trade License in Dubai?
To renew a trade license in Dubai is a simple task as long as you use the appropriate procedure. Here’s a step-by-step guide:
Step 1: Log in to the DED eServices Portal
- Select your UAE Pass / DED account.
- Click on Renew License on Business Dashboard.
Step 2: Select the License
- Key in your license number in the renew section.
- Click Renew to proceed.
Step 3: Verify and Update Information
- Check your license number, trade name and expiry.
- Update contact information, where necessary.
- Please enter your RERA contract number to retrieve the market fee.
- Post the necessary papers such as Ejari, tenancy agreement, and passport images.
Step 4: Submit Application
- E.g. when all the details are confirmed and the documents are uploaded, choose Apply for Renewal.
- Your application will be looked at by the DET.
- DET will coordinate with the authorities in case any external approvals are required.
Step 5: Pay the Renewal Fee
- Upon approval you will be issued with a payment voucher.
- Make payments online or using authorized payment centres.
- On payment, you will be given your new trade license.
Cost of Trade License Renewal in Dubai
The renewal cost is based on a number of factors:
- Business Structure – It can be Sole proprietorship, LLC, or branch offices that have various fees.
- Business Activity – Some activities may need extra approvals which impacts on costs.
- Jurisdiction – Depending on whether your company is located on the mainland of Dubai or a free zone, fees can differ.
- Other Approvals – Special charges may be imposed by the authorities.
Trade license renewal in Dubai is AED 8,000 to AED 15,000 on average, which might change based on the above factors.
Penalties for Not Renewing Trade License in Dubai
In case you do not renew your trade license in time or even not at all, you can be severely punished:
- Heavy Fines – Fines are piled up every day on the basis of operating with a lapsed license.
- Operational Restrictions – Business activities may be suspended.
- Legal Action – Law enforcement is able to take action in the case of further non-compliance.
- Blacklisting – It risks blacklisting by the company, which impacts the subsequent licensing.
- Bank Account Freezing – Banks can freeze your accounts and prevent transactions.
- Visa Issues – Renewal of employee and dependent visa is not possible.
- Business Closure – In severe situations, an organization can be closed down by the authorities.
- Reputation Damage – Clients and partners might lose trust in your company.
Tips to Ensure Smooth Trade License Renewal
- Start the process at least one month before expiry.
- Keep your Ejari and tenancy contract updated.
- Ensure all partner passport copies are valid.
- Work with a business setup consultant like CompanySetup.ae for hassle-free renewal.
Conclusion
If you are asking yourself How to Renew Trade License in Dubai? It is easy, just be ready, work through the process and get renewed in proper time. A valid trade license is a sure way of keeping your business within legal boundaries as well as maintain continuous growth, credibility and access to important services.
Company setup consultants helps you in the entire process of renewal, including preparing the documents and paying the fees so that you are not fined and concentrate on development of your own business.
Looking to Register/ Trade License Renewal Dubai? Contact Us Today
FAQ’s About on How to Renew Trade License in Dubai
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How do I renew my trade licence in Dubai?
You can renew your trade license in Dubai (mainland) via the DED / Department of Economy & Tourism (DET) e-services platform. Key steps include:
- Log in with your DED / DET credentials or UAE Pass.
- Select “Renew License” and enter your license number.
- Verify or update company information, upload required documents (tenancy contract, Ejari certificate, passport copies, existing license, etc.).
- Pay the renewal fees.
- Wait for the authority’s approval, after which you’ll receive the renewed license.
- If external approvals (from other agencies) are needed depending on your business activity, the license will go through those.
Yes — renewal can typically be done online.
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How much does it cost to renew a business license in Dubai?
Renewal cost varies, based on a number of factors: business activity, type of license, number of visas, jurisdiction (mainland vs free zone) and other approvals.
The average cost of renewal ranges between AED 8,000 and AED 15,000 to the typical mainland companies.
In others, the spectrum is wider: AED 5,000 to AED 25,000+ according to the complexity and size.
Other small charges (e.g. knowledgedirham, innovativedirham, service fee, etc.) can be provided as well.
Therefore, your particular expense will be less or more according to your business operations and needs.
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Can I renew my license online in Dubai?
Yes. In case of mainland (DED/DET) trade licenses, the renewal is facilitated online through e-services portal.
Ensure that your tenancy agreement is registered (Ejari) and all the documents are prepared since unregistered or invalid documents prevent online renewal.
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What is the grace period for trade license renewal in the UAE?
On the mainland of Dubai, a 30-day grace period is generally provided after the expiry of the license in which the renewal is still possible (however, some fines may start).
You may not get the entire stinging of the stick during that 30-day period but according to some sources, fines can commence before the end of that window or increase thereafter.
The terms may vary (to less or no grace period) in free zones or under specific jurisdiction – always check with your licensing authority.
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What happens if I don’t renew my trade license in Dubai?
There are consequences of failing to renew your license:
Penalties and fines of the default of the renewal (that grow with time).
Operation limitations – your business cannot legally do business, enter into any contracts, or engage in any new transactions.
Blacklisting – your business can be blacklisted, and it is challenging to do restorations later.
Visa and immigration impact- failure to renew or to grant to employees and dependents.
The business may get closed or the license may be cancelled in case of delay over several months.
In addition, it is stated in some sources that the failure to work on the basis of an invalid license may result in the imposition of a fine of AED 5,000.
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How long is a trade license valid in Dubai?
The trade license in Dubai has a period of one year and is commonly renewed every year.
What is the expired trade license fine in Dubai?
The amount of the fines based on the expiry or late renewal is dependent on both the expiry or the late renewal and the authority. Some reference points:
AED 250 every month as a late renewal charge at early stages.
There is a fixed penalty of AED 5,000 on running with an expired license (in certain instances).
The penalty system under DMCC (a free zone) is more elaborate:
- 0–30 days expired: AED 2,500
- 31–60 days: AED 5,000
- 61–90 days: AED 7,500
- Over 90 days: license can be cancelled.
Due to the increasing severity of penalties, one should make sure to resume in time, not wait till the time runs out.
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 info@companysetup.ae.
