Trade license renewal in Dubai is a vital formality like getting a new trade license. The license holder needs to conduct the renewal of the trade license before the specified time. Any delay in the renewal can cause financial penalties or can affect your business adversely.
How to renew a trade license in Dubai? How to get started? Although trade license renewal is not a daunting process, it may seem so unless you have prior experience in this.
Here is a guide on how to renew your trade license in Dubai –
- Different types of trade licenses issued in Dubai
Getting a valid trade license is one of the essential prerequisites to do business in the UAE. A valid license in this country enables a business person to legally perform a business activity or a group of activities specified in the license. Involving yourself in activities without a valid license is considered “illegal” in Dubai.
When it comes to licenses, there are three main types one can acquire, including commercial, professional and industrial. A commercial license is applicable for a business that involves the sale of tangible products, while every manufacturing and industrial company needs an industrial license. And businesses that offer services which need special skill for an exchange of fee need a professional license. The Department of Economic Development (DED) – the government authority is in charge of issuing trade licenses in UAE.
- Instructions to renew a license in Dubai
- Ensure the validity of the Tenancy agreement
Your tenancy agreement should have a minimum validity of 3 months to apply for license renewal. If the tenancy agreement has already exceeded this minimum validity period, you are not allowed to apply for license renewal. The agreement also needs EJARI attestation. So, it is better to postpone the renewal procedures until the last moment.
- Attaining the approval
Before filing the license renewal application, you need to attain the necessary apptoval/s from all the concerned authorities. For example, if you have a restaurant in Dubai and want to renew the license in Dubai. Before renewal, you need to seek approval from the Food Safety Department and various other government agencies.
- Documents needed for license renewal in Dubai
Some documents are required for license renewal and they include:
- Certification of Ejari registration
- BR/1 form (typed)
- Tenancy agreement
- Business partner’s passport (copy)
- Existing trade license (copy)
- Apply for license renewal
Apply for your business license renewal at the Department of Economic Development in Dubai. Hand over the Tenancy agreement, business partner’s passport, Ejari attestation, duly filled application form and other supporting documents to DED.
- Accept the payment voucher
Once you are done with the license renewal application and all other submitted documents, DED issues a payment voucher. Accept the payment voucher.
- License renewal payment
Make the payment connected with the trade license renewal with the help of the payment voucher. The DED issues the renewed license after the payment is successful. You may make use of other platforms for renewing the trade license.
- What would happen if the trade license is not renewed on time
If you don’t renew the business license within the stipulated time, then you may face complications and need to pay penalties that would affect the reputation of your company. The major scenarios include –
The DED, Dubai has the authority to impose fines on the businesses that operate devoid of trade license. A fine of AED 5000 can be imposed on such a scenario.
When your company fails to renew the business license and does the operations with the expired license, they can be put under the “blacklisted” category. It could cause the termination of business operations.
Prohibition of business expansion
Businesses that continue their operations without renewing the trade license hinder their future business expansion plans.
A business establishment in Dubai like Immersion Group DMCC can help you with trade license renewal along with trade name registration Dubai. As we are familiar with the nook and corner of the procedure, we can make it hassle-free for you. Contact us and avail of our services today!