A complete guide to renewing a business license in Dubai?
Not only do products expire, but so do some documents. However, unlike the former, the latter can be renewed. A business license in Dubai is one such document. Trade licenses in Dubai are valid for one year. And you are well aware that driving with an expired license is a crime in Dubai, punishable by a fine.
In Dubai, trade licenses are not to be taken lightly. You must be aware of when it is due for renewal and have the necessary documents on hand to complete the process. And that is why we have returned to enlighten you on the trade license renewal process in Dubai
The Importance of Renewal of Business Licenses in Dubai
The most important requirement for doing business in Dubai is to have a valid business or trade license. When we say valid, we simply mean that the license is active. You can’t do business if your trade license expires, just like you can’t travel abroad if your passport expires or drive if your license expires. Trade licenses in Dubai are only valid for one year and must be renewed every year. And this should be your top priority because trading with an expired trade license is illegal, and you don’t want to be penalized for failing to renew it on time.
Consequences of Failure to Renew a Trade License in Dubai
To avoid the following consequences, apply for the trade license renewal one month before the expiry date:
A fine of AED 5000 can be imposed on businesses operating in Dubai with expired licenses. Traders who commit the same offense may face a monthly fine of AED 250.
Termination of Operations: Businesses in Dubai that do not renew their licenses when they are due may be barred from operating in the UAE. The cancellation of all your employees’ visas and sponsorships, the halting of your transactions, and the cancellation of your residence visa are all consequences of being blacklisted.
Expulsion from the UAE: The DED has the authority to order establishments to cease operations if they are found operating in Dubai with an expired trade license. In most cases, an entity barred from doing business in the country cannot return.
The Renewal of Trade Licenses in Mainland Dubai
As we have previously stated, obtaining a trade license is simple. So is the even simpler renewal process! However, after one year, the authority must recheck the paperwork regularly to allow you to continue doing business in Dubai for the next year. You don’t have to worry about the renewal process if you already work with a business formation specialist like Adam Global. They keep track of the license renewal due date and contact you for the documentation well before the expiry date. If not, you can still find the right business advisor in Dubai and outsource the task to save time and energy. Knowing how to renew your trade license will help you if you want to go it alone.
Preparation: Before applying for a license renewal, make sure you have all of the necessary documents on hand. Here is a list of them, along with some information:
A Typed BR/1 Form: Required for Dubai trade license renewal applications, the BR/1 form is a form that must contain all necessary information about the applicant as well as the signatures of all business partners. To begin the process, the duly completed form must be submitted to the DED department for approval.
Tenancy Contract and Ejari Registration Certificate (copies): Your Dubai tenancy agreement must be valid for at least one month for legal reasons. It must also be witnessed by the Ejari. If you do not comply, expect your trade license to be revoked.
Copy of current (old) business trade license: In addition, a copy of the original old license must be included in the set of supporting documents for DED license renewal.
Passports of Business Partners (Copies): At the time of trade license renewaltrade license renewal in Dubai, you must also submit passport copies for all of your business partners. If you are the only stakeholder in your company, submit only your passport with your application.
Steps to follow:
The Department of Economic Development (DED) in the UAE is in charge of issuing and renewing mainland business licenses. You can apply for license renewal in Dubai either online or offline. You could also delegate the task to one of the best business setup consultants in Dubai, such as Adam Global. Whatever method you choose, you must submit the preceding documents to the authority for renewal of your DED license. Once you have these documents, proceed to the next steps to complete the process:
Step 1: Arrange all of the listed documents and, if necessary, double-check the validity of your RERA documents.
Step 2: Complete the application form (BR/1 form), have it signed by all stakeholders, attach all relevant documents, and finally submit it to the DED.
Allow for a few days for the authority to review the submitted documents. Once the verification is completed and your license renewal request is approved, you will be sent a payment token.
Step 3: Get your payment token from DED and use it to pay the Dubai general trading license fee. At this point, DED reviews your application, verifies the documents, and renews your license if no discrepancies are discovered.
The Price of a Dubai Trade License Renewal in 2022
The fee for renewing a trade license is the same as the fee for obtaining a trade license. This simply means that you must pay nearly the same amount as you did when you received the new trade license. In Dubai, the trade license renewal fee typically ranges between AED 8,000 and AED 15,000, excluding service charges and local service agent fees.
The Renewal of Trade Licenses in the Dubai Free Zone
✔️ The process for renewing a Free Zone business license differs slightly from that of renewing a DED license.
✔️ Collect all pertinent documents, including the current trade license and a no-objection certification (if applicable)
✔️ You may also require a Certificate attestation of Continuity of Existence (in case you own an onshore UAE company)
✔️ Contact the authority in charge of the free zone where your business is located.
Without a doubt, the process of renewing a license in Dubai is simple, but remembering the due date is not. We don’t see any other reason why it shouldn’t be renewed on time. Who on earth would want to face penalties, legal proceedings, or even expulsion from the country simply because they missed the deadline? Nobody, I believe! Trade license renewal is only one of many mandatory tasks that must be completed each year, such as financial audits, VAT returns filing, VAT refund requests filing, and corporate tax filing. Keeping track of everything is difficult for a business owner who is already juggling a lot of things. Working with an experienced business setup advisor in Dubai, such as Adam Global, gives you mental peace about a variety of necessary tasks, such as business license renewal. Contact Adam Global, your Dubai business advisor, for all of your big and small business needs.