Each business in Dubai needs a business license for their business to be legal. It’s extremely important to make sure this license is up to date. Each year this license must be renewed through the Department of Economic Development (DED). This can be a complicated process that needs to be done in a timely manner and includes a lot of paperwork. Any errors or delays in filing the renewal could lead to big penalties or a ban on your license. Don’t let any mistakes stand in the way of your trade license renewal Dubai. Let MSZ Consultancy assist you with an error-free license renewal.
As a trader, your license remains the original document that verifies your business as an official legal entity to function. Hence, it is imperative to ensure that your license is always updated to avoid any hefty fees that will be levied if your license has passed the expiration date.
Steps to Renew Your Trade License in Dubai
The process to renew a trade license Dubai slightly varies depending on where your business is setup. If you have a business in a Free Zone you will have to go through the Free Zone you’re registered in order to get your license renewed.
Here are the steps to take in order to renew your license on the Mainland:
- Gather the documents that are needed:
There are several documents that need to be presented during the renewal process. However, the tenancy contract needs some planning. This contract must be valid for at last one month from the date of the application. If it doesn’t have the validity of at least a month then it won’t be renewed.
- Complete the renewal application:
The application is known as the BR/1. This application needs to be typed and submitted online along with a copy of your current trade license and passport copies for all business partners. These documents can be submitted online.
- Pay for your license renewal:
After you’ve submitted all of your information online, you will receive a payment voucher. You will not receive the renewed license until the fees has been paid. Once you have paid the Dubai trade license renewal fees, you’ll immediately receive your new license.
What Happens if My Trade License in Dubai Expires?
An expired license could mean big trouble for your business. It’s crucial to make sure you renew your trade license before it expires to avoid big fines or even bigger headaches like liquidation.
If you’re operating without a trade license you could be fined AED 5000.
You do have a 30-day grace period after your trade license expires to get it renewed. However, if you don’t renew or cancel your license within that time, then you will be charged AED 250.
Besides big fines and penalties, your company could face bankruptcy if your license isn’t renewed. This can throw a big wrench in the successful business that you’ve created and alter your reputation. Bankruptcy can also eventually lead to voluntary or forceful liquidation.
If your license expires and you continue to do business in the country, then your company could also be blacklisted. This is the most severe form of punishment that comes with many restrictions including:
- Your company won’t be allowed to participate in business proceedings.
- Your visa could be annulled, and you could be banned from travelling.
- Being blacklisted looks bad for your company, so your sponsors may choose to pull out.
- The owner, managers, shareholders, and directors could also be deported from the UAE.
- Simply put- avoid letting your license expire at all costs.
What is the Process to Renew my Trade License in Dubai Free Zone?
The process to renew your trade license is basically the same whether it is for a company in the Mainland or in a Free Zone. However, the process varies just slightly when renewing for the Free Zone.
If you’re renewing a license in a Free Zone, then you will need to go through the Free Zone where your business is located.
Here are a couple of documents that you may want to have ready in case the authority in your Free Zone needs them during your renewal:
- No Objection Certificate (if applicable)
- Certificate of Continuity of Existence or Good Standing or Current Trade License
Can I Renew My Trade License Online?
The DED has made it simple to renew your trade license through an online portal.
Before renewing a license, the owner of the company must setup an account and submit personal documents to get the account activated. After your account is set up, you can renew your license each year and also make payments on the portal.
Key Points for Renewing your Trade License in Dubai
While renewing your trade license is a pretty easy process, just one mistake can set back the process. You don’t want this to happen, especially if you’re in a time crunch.
Here are some key points to pay attention to when renewing your license to help make the process as hassle-free as possible:
- Make sure your Tenancy agreement is up to date:
This is an important step that can’t be missed because it is time sensitive. Your tenancy agreement should have a minimum validity of 3 months when applying for your license to be renewed. You can’t apply for your license to be renewed if the tenancy agreement has exceeded this minimum validity period. The agreement also must be attested with the Ejarl. So, this isn’t something that you want to do last minute. Give yourself plenty of time to get it updated before you renew.
- Attain approval:
Before submitting your license renewal application, you will need to get approval from the correct authorities according to your business activity. For example, a restaurant owner would need to get approval from the Food Safety Department before renewal.
- Make sure your documents are ready
You will want to make sure you get your documents in hand before approaching the DED for renewal. Here’s a list of the documents you need:
- Copy of your trade license
- BR/1, which is a license renewal form
- Copy of your Tenancy Contract
- Ejari certificate
- Copies of the partners’ passports
For more information, call us on +971 52 544 1248 or drop us a mail at info@mszconsultancy.com
