Steps To Renew a Trade License in UAE

 14th December 2019

 Business Setup

A trade license is one of the most important requirements for doing business in Dubai. Getting a
business license renewed involves a lot of documents processed. Also, renewing a business trade
license could be a long process if you are not familiar with it. Delay in ling a trade license renewal
levies penalty, or worse, a ban to the business license, freezing all the business activities. There are
three kinds of licenses issued by the Department of Economic Development Dubai.

The commercial license

The industrial license
Professional license

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Below are the steps to renew a trade license in Dubai:
Also Read: Trade License in Dubai: Di erence Between Commercial License and Professional
License

Step 1 Have a valid tenancy contract

The rst thing one need to ensure is that the rm’s tenancy contract should have a validity of at
least 1 month and it should be attested by ejari. If the tenancy contract does not have a validity of
at least a month, the associated license cannot be applied for renewal.

Step 2 Apply for license renewal

Doing business in Dubai needs approval from concerned authorities in order to renewed their
business license. Apply for license renewal at the DED, along with all the required documents. Here
is a list of all the documents required for the purpose of trade license renewal:

A typed BR/1 form

Ejari Registration Certi cate and a photocopy of Tenancy Contract
Photocopy of the current business trade license
Passport photocopies of all the business partners

Step 3 Make the payment

After submitting the application, the DED shall allot a payment voucher. Once you receive the
voucher, proceed to the payment procedure. Immediately after making the payment you will
receive your renewed license from the channel.

Penalties imposed if you fail to renew the trade license

Monetary Penalties

When a licensed business expires the Department of Economic Development in Dubai can impose
a business with several forfeits. A business practicing without a license could be penalized with AED
5000, while failure to renew a license within the speci ed time-limit could cost AED 250/month, also
an additional o ce for an existing license without permission nes the entity with AED 2000.

An expired business license can lead your company to being ned. Any delay in payment can also
result in penalties to the concerned business. Companies can be imposed a monthly ne as
mentioned earlier. The nes start accumulating right after the expiry date. Continuation of
business without renewing the trade license can lead to the company being blacklisted by the
respective authority. In such case, the company must seize all transactions and the visas and
sponsors listed under the company name can be made null & void. The expansion of the business
can also be restricted if the license renewal is not done within the stipulated time frame.

Black Listing of Company

When the business continues their business activities without renewing their trade licenses it is
possible that the company could be blacklisted and would stop all the activities the company is
dealing with. They can nullify the visas and sponsors under the company.

Restriction on the Expansion of Business

The companies with expired license are not allowed to expand under these circumstances. It is
essential for the companies to have a clean record if there are plans for expansion.

There is a lot to think about when you start a business. You have to focus on nding clients and
customers and making sure you provide them with what they need, but you also have a lot of
administrative work to do in the background. Even if you are organized at the very beginning,
chances are there will be things that get missed in a year or two as the work builds up.

An expired business license could ruin the company

Make sure you know the expiry date and work in the time to get it renewed, if possible, before the
deadline. Authorize someone in the company you trust to get it done or work with an external
partner who can take the responsibility o your shoulders. Either way, keep your license valid or
your business will inevitably su er and you could be at risk of losing everything.

Business consultancy agencies are abundant in Dubai. Such agencies o er A-Z company formation
solutions which include everything from trade license registration and on-time annual renewals
with timely reminders, so you, the business owner, can focus on your business. You may have to
address your questions to professionals on processing the requirements for running a business.

You may also: Steps to Acquire License in Fujairah for General Trading

Dubai has made e orts to ease obtaining and renewing a trade license, but sometimes handling
these procedures of acquiring and renewing a trade license in a timely fashion in Dubai can prove
cumbersome for entrepreneurs. If you have any doubts on how to get or renew a trading license or
for any Pro services in Dubai, get in touch with us.

 trade license