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.
DOCUMENTS REQUIRED
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:
1. 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.
2. 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.
3. 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:
1. 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.
2. 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 prior to renewal.
3. 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
Renew Your Trade License in Dubai with MSZ Consultancy
Don’t renew your trade license on your own, let us help! MSZ Consultancy can make the process hassle-free and ensure that you don’t have any delays. Don’t chance penalties and fines; let us make sure you get everything done in a timely manner. We are experts in business setup in Dubai and are familiar with all the processes that you have to go through to create and maintain a successful company. Don’t wait! Contact us today for a FREE consultation. You can chat with us online or give us a call at +971 52 544 1248.
WHAT WE DO?
We provide business services and assist with a hassle-free business setup in UAE. Once your company is up and running, we also stick around to provide business solutions like license renewals, PRO services, and more. Simply put – we provide the support you need to keep your business running successfully. We also provide the financial and legal suggestions you need to keep your business running smoothly.
HOW DO WE HELP?
We have a unique team of business setup consultants, lawyers, and PRO executives that are experts in all business needs. We don’t just help with the company setup, we can also provide business advice, help with legal paperwork, assist with setting up your bank account, and other corporate business services. At MSZ Consultancy, we are your long-term partner for all of your company’s business requirements.
WHY CHOOSE US?
With MSZ Consultancy, you won’t find a company that provides better customer service. We are also one of the few consulting companies in Dubai that provides valuable insights to customers that will help them with a successful business journey. We tailor our services to fit your exact needs. We pride ourselves on being easily approachable, just give us a call and we are happy to help!
Frequently Asked Questions
How often do I need to renew my license?
Trade licenses must be renewed on a yearly basis.
How do I know if my trade license requires additional approvals before renewal ?
This will all depend on your business activity. For example, transportation activities require approval from the Dubai Road and Transport Authority. Medical activities require approval from the Ministry of Health and Prevention. A restaurant owner would need to get approval from the Food Safety Department prior to renewal.
If you are unsure if your business activity needs additional approval, MSZ Consultancy can help you figure it out.
How do I know if my tenancy contract is still valid?
Your contract must be valid for at least a month.
How can do I apply for my trade license renewal?
You will have to apply for your renewal through the DED. However, if your business is in the Free Zone, then you will have to go through your Free Zone Authority to get the license renewed.
What penalties will my business face if I don’t renew my trade license?
You could be subject to fines as well as be blacklisted.
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