Every business in Dubai must obtain a business license to operate legally. It is crucial to ensure that this license is always up-to-date. As a business owner, you must know how to renew a trade license in Dubai. The Department of Economic Development (DED) requires businesses to renew their licenses annually, which can be a complicated process involving a lot of paperwork. Any errors or delays in the renewal process could result in significant penalties or even a ban on your license. Don’t let mistakes hinder your trade license renewal in Dubai. Let GAL Business Center help you with a hassle-free and error-free renewal process.
As a trader, your license is the original document that validates your business as a legal entity. Therefore, it is vital to ensure that your license is updated to avoid any hefty fines that can be imposed if your license has expired.
How to renew a trade license in Dubai
Step 1: Start early
Renewal Process Timing: Trade licenses in Dubai are typically renewed annually. It’s essential to start the renewal process well in advance of your license’s expiry date to avoid any legal complications. We recommend initiating the process at least 30 days before your license is set to expire.
Compile all the necessary documents required for the renewal process. These documents may include:
1. Registered Certificate from Ejari:
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 Lease Contract:
Your tenancy contract should have a validity of at least one month or more to be eligible for trade license renewal. Make sure that Ejari has verified and approved your contract.
3. Copy of the previous 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. All current partners must complete and sign this form. Attach all other required documents to this form before submission.
5. Photocopies 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. No matter the application method chosen, the relevant governing bodies in Dubai carry out the regulatory procedures and assessments.
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): If you are renewing your trade license in a free zone, you might need to provide a No Objection Certificate from the sponsor or appropriate authority.
- Free zones provide the opportunity to request a Certificate of Continuity of Existence or Good Standing, which acts as proof that the company is in compliance with applicable laws and retains an active status. The attainment of this certificate provides substantiation that your enterprise operates with effectiveness and fulfills the prerequisites for the extension of its commercial permit.
- Current Trade License: As part of the renewal process, you might be required to submit the parent company’s current trade license if your free zone business is a branch of an onshore UAE company.
Step 2: Submit Required Documents
The primary authority responsible for trade license renewal in Dubai is the Department of Economic Development (DED). Visit the DED office or their official website to submit your trade license renewal application.
Step 3: Payment of Renewal Fees
The next step is to pay the necessary renewal fees. These fees can vary depending on your business type, activities, and any additional services you require. Ensure you’ve calculated these fees accurately and be prepared to make the payment during the renewal process.
Step 4: Inspections and Approvals
In some cases, authorities may conduct inspections to ensure your business complies with safety and quality standards. Additionally, you may require approvals from various authorities, depending on your business activities. These steps must be completed before your trade license renewal can proceed.
Step 5: Collect Your Renewed License
Once your application is approved and all requirements are met, you can collect your renewed trade license from the DED. It’s essential to keep a copy of your renewed license on your business premises and maintain updated records.
How To Renew A Trade License In Dubai Online?
It is possible to renew a license online through the DED website, both before and after its expiration.
To renew license
- To renew your license, go to the Business Dashboard page and click “Renew License” under the “My Transactions” section.
- In the “License renewal information” section, enter the license number you want to renew.
- Press Renew button
The next step involves confirming license information and attaching the required documents.
- Click Apply for Renewal.
- Once you have uploaded all the necessary documents, the Apply for Renewal button will become visible.
- If you wish to stop the process, click the Cancel button.
- DED reviews applications and attached docs, sends for external approval if needed, and issues payment letters upon approval.
How much does it cost to renew a Dubai business license?
In Dubai, the cost of renewing a business license can vary based on a number of factors, including the jurisdiction and economic zone. The typical range for Dubai’s commerce license renewal fee is between AED 8,000 and AED 15,000. It is essential to note, however, that these figures are approximations and can vary based on specific needs and the type of business activity.
It is recommended that you consult with experts or professional consultants at Company Setup Consultants to obtain a detailed quote tailored to your specific requirements and accurate information about trade license renewal fees in Dubai. They can provide customized advice and assistance based on your particular business needs.
What are the consequences of failing to renew a trade license in Dubai?
Here are some of the penalties for not renewing your trade license in time:
It is crucial to renew your trade license promptly to avoid fines at different levels. Each month that the business fails to renew its trade license after its expiration, it will incur a penalty of AED 250. If the business continues to engage in its activities after the trade license’s expiry date, it will be subject to a fine of AED 5,000.
If a business fails to renew its trade license despite the imposed fines, it will be blacklisted. Once the business is blacklisted, and if it still does not renew its trade license, it will face the termination of its business operations.
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.
Renewing your trade license in Dubai is a crucial process to ensure the legality and continuity of your business operations. Starting early, gathering the necessary documents, and adhering to the prescribed steps are essential. Failure to renew on time can result in penalties, blacklisting, and restrictions on business expansion. To make the process hassle-free, seek professional assistance from GAL Business Center or expert consultants. Keep your trade license updated to continue thriving in the vibrant city of Dubai. Don’t let delays or errors hinder your business’s success; take action today!
Frequently Asked Questions (FAQs)
How early should I start the trade license renewal process in Dubai?
Starting at least 30 days before your license’s expiry date is recommended to avoid complications.
What documents do I need for trade license renewal in Dubai?
Gather essential documents like Ejari registration, a valid tenancy contract, a copy of the old trade license, BR/1 form, and passport photocopies.
How much does it cost to renew a business license in Dubai?
Renewal fees can vary, with approximate costs ranging from AED 8,000 to AED 15,000. Consult experts for precise quotes tailored to your needs.
What happens if I fail to renew my trade license in Dubai?
Failure to renew on time may result in penalties, blacklisting, and a prohibition on business expansion. Renew promptly to avoid these consequences.
Can free zone businesses face additional renewal requirements?
Yes, free zone businesses may need to provide additional documents like a No Objection Certificate (NOC), Certificate of Continuity of Existence, and current trade license for branch companies.