Trade license renewal is a crucial aspect of running a business in the United Arab Emirates (UAE). In Dubai and other emirates, it is necessary to renew your trade license annually to keep your business running legally. In this blog post, we will guide you through the process of trade license renewal in Dubai and other emirates in the UAE.
Process for trade license renewal in Dubai:
- Know your renewal date: The first step in renewing your trade license is to know the renewal date. It is important to remember that trade licenses in Dubai and other emirates are valid for one year from the date of issue. You can check the renewal date on your trade license or on the Department of Economic Development (DED) website.
- Complete the necessary documentation: Before you can renew your trade license, you will need to complete the necessary documentation. This typically includes an application form and the renewal fee. You may also be required to provide additional documents, such as your business’s financial statements, trade name reservation certificate, and lease agreement.
- Submit the documentation: Once you have completed the necessary documentation, you will need to submit it to the relevant authority. In Dubai, this is typically the DED. You can submit the documentation online or in person. It is important to note that you must renew your trade license before the renewal date to avoid any penalties.
- Pay the renewal fee: The renewal fee for your trade license will depend on the type of business you are running and the emirate you are based in. The fee can typically be paid online or in person. It is important to note that the renewal fee must be paid before the renewal date to avoid any penalties.
- Wait for approval: Once you have submitted your documentation and paid the renewal fee, you will need to wait for approval. The approval process typically takes a few days, but it can take longer if there are any issues with your documentation. Once your trade license has been renewed, you will receive a new license that is valid for another year.
- Renew other permits and visas: In addition to renewing your trade license, you may need to renew other permits and visas. For example, if you have employees, you will need to renew their work visas. You may also need to renew your company’s immigration card and other permits.
- Keep your business records up to date: Finally, it is important to keep your business records up to date. This includes keeping track of your trade license renewal date, as well as other important deadlines and requirements. You should also keep detailed records of your business’s financial transactions and other important documentation.
Documents required to renew the company license in Dubai:
The specific documents required for trade license renewal in Dubai, UAE may vary depending on the type of business you are operating and the emirate you are based in. However, some of the commonly required documents for trade license renewal in Dubai include:
- Trade license renewal application form
- Copy of the current trade license
- Valid lease agreement for the business premises
- Copy of the tenancy contract or title deed and Ejari issuance certificate
- Copy of the company’s memorandum of association
- Copy of the BR/1 Form
- Copy of the passport and Emirates ID of the company’s owners and partners
- Financial statements provide a picture of a company’s financial health.
- Valid health and safety certificates
- Any other relevant licenses or permits required for your specific business activity.
What aftereffects when Dubai economic department trade license is not renewed?
If a trade license in the UAE, is not renewed on or before the expiry date, there can be several negative consequences. Some of the common after-effects of not renewing a trade license in the UAE are:
- Fines and penalties: The most immediate consequence of not renewing a trade license on time is the imposition of fines and penalties. In UAE, for example, there is a late renewal penalty that is added to the trade license renewal fee if the renewal application is submitted after the expiry date.
- Legal consequences: Continuing to operate a business without a valid trade license can result in legal consequences. This may include the suspension or cancellation of the license, legal action against the company, or even criminal charges in extreme cases.
- Business disruption: Not renewing a trade license can disrupt business operations, as the company may not be able to renew other licenses and permits required to operate legally. For example, the company’s employees may not be able to renew their work visas or other permits, which can lead to disruptions in the workforce.
- Negative impact on business reputation: Non-renewal of a trade license can also have a negative impact on the company’s reputation, as it may be seen as a sign of non-compliance or lack of commitment to operating a legitimate business. Also has a risk of listing your business as a blacklisted one.
How Legal House can help you:
As a corporate legal consultant in Dubai, We can provide a range of services to assist with Dubai trade license renewal. Some of the ways that we can help businesses with trade license renewal include:
- Providing guidance on the renewal process.
- Preparing and submitting the trade license renewal application.
- Help you in addressing any issues or disputes and providing ongoing legal support.
If you looking for a trade license renewal in Dubai and other UAE emirates(Sharjah, Rak, UAQ, Fujairah, Abu Dhabi, Ajman) then feel free to contact us.
the grace period for trade license renewal in Dubai mainland was 30 days from the date of the expiry of the license. This means that businesses operating in Dubai mainland have a window of 30 days to renew their trade license without incurring any fines or penalties.
In Dubai, UAE, the renewal date for a company’s trade license can be found on the original license or on the Department of Economic Development (DED) website, which is the government authority responsible for issuing trade licenses in Dubai. Alternatively, you can contact the DED or a professional service provider or legal consultant like us, for assistance in determining your company’s renewal date.
Yes, you will need to have a valid Ejari certificate in order to renew your Dubai trade license.
The fees for Dubai trade license renewal can vary depending on the type of business activity and the specific emirate in which the business is registered. Generally, the renewal fee for a trade license is less expensive than the initial registration fee. Get a free quote from us.