For any corporation based in Dubai or elsewhere in the United Arab Emirates, the official trade license must be renewed every year. In Dubai, a trade license is a legal document that authorizes a company to do trade or provide other essential business services. The company is authorized to engage in those activities which are specifically outlined in the company’s official documents. These business activities and pursuits must also adhere to prescribed UAE regulatory guidelines.

If you already own a company in Dubai, you’re probably already somewhat familiar with the process for obtaining an original business license for buying, selling, trading, and providing other business services. But obtaining a business license isn’t just a one-time exercise; the license must also be properly maintained. Failure to renew a trade license can result in serious consequences, ranging from penalties to blacklisting to forced business closure.

In order to renew a trade license, a corporation can take advantage of either the online or offline portals with the DED. Depending on your business classification and the sorts of operations which are covered by your license, the renewal process might be quite involved. But there’s no need to be alarmed or worried – MSZ Consultancy is here to help ensure that your license renewal goes through without a hitch! We can serve you by keeping everything on track, providing you with helpful reminders about what is needed, and helping to streamline the whole process for you. One of our specific functions at MSZ Consultancy is to assist businesses like yours with trade license renewal in Dubai in a timely, efficient, hassle-free manner.

Let’s get started with renewing your UAE trade license

Whether you operate in a Mainland area or in a Free Zone, the process for renewing your trade license is basically the same. The first important step is to know to which authority you must appeal. The Department of Economic Development or DED will be the issuance office for a Dubai Mainland business. However, if you operate your business in a Free Zone, you must apply for renewal with the applicable Free Zone body.

Here’s a look at the Mainland trade license renewal procedure, which consists of a few essential steps

1. Double-check to make sure all of your legal documents are in order

To renew a trade license, Mainland companies should submit an attested tenancy contract. Attestation must be valid for a period of at least one month after your application is submitted. A completed BR/1 form will also be required for submission. Your tenancy contract must be valid for at least three months beyond the expiration date of your current trade license. So, make sure to double-check your tenancy contract before applying for license renewal. If your tenancy contract is due to expire before your trade license comes due, it’s better to go ahead and get that renewed before the license expires.

2. Get approvals from third parties

Before your license may be renewed, specific activities listed will need to be approved by the appropriate third parties. For example, several professional license activities necessitate that the company director or a designated manager take and pass the American Institute of Dubai’s examinations. Or let’s say you hold an Interior Decoration license. You’ll need to demonstrate a connection between your Dubai Municipality account and a Society of Engineers (SOE) registered architect. Otherwise, you may only be eligible for a conditional license, or – worse still – your license renewal application could be rejected outright. In this event, you’d be unable to continue trading or providing services until the situation is rectified. It should also be noted that third parties must pay fees to get the required NOCs for submission to the Economic Department.

3. Submit your renewal application

Now it’s time to gather and prepare the tenancy contract / Ejari as well as any third-party consent required for your license. You’ll also need to bring a copy of your current trade license from Dubai (or other relevant Emirate) and submit these documents to the nearest DED or Tasheel center.

You can also apply for the renewal online if you have an online DED account. The authorities can process your renewal digitally, as long as all of the documents in the system are valid. The governing body may also decide to request a manual renewal through a DED center if there are unmet third-party permission requirements, or if the Ejari is not up to date.

4. Verify and acknowledge the required renewal payment fees

You will receive a payment voucher once your renewal application is submitted and conditionally approved. The payment voucher includes several sections, so special attention should be paid whenever reviewing this document. Before completing the final payment, you can seek a charge reduction if you feel you qualify. Sections such as market fees, for example, are tied to your current property rent value. Make sure these calculations are correct. In addition, there are areas dedicated to business partner housing and employee accommodations.

Making sure you’ve provided all the relevant and correct documentation to the Municipality Department can help to make this process go more smoothly. And that’s one area where MSZ Consultancy’s breadth of experience can be really helpful to you. We can help you to understand exactly what you’re paying for, and we may also be able to help you flag any fee reductions for which you could qualify.

5. Proceed to make final payment

Proceed to any Tasheel Center or the DED desk with the above-mentioned payment voucher. You can simply pay the cashier, and then you’ll promptly receive your renewed trade license. Also, be advised that if you pay at the DED or Tasheel Center, you will be charged a service fee on the transaction. Alternatively, you also have the option to make your payment online, either through a bank account draft or with an approved credit card.

The renewal procedure outlined above is for a simple trade license in Dubai or any other Emirate. The procedure is a little different if you wish to renew your license under a new sponsor or tenancy.

The documents below are required for your trade license renewal

• Tenancy contract with Ejari
• Renewal application form
• Existing trade license copy
• Passport copies, both for the owner and for any business partners

Frequently Asked Questions

1. Is there a grace period for renewing a Dubai Trade License?

Renewals of Mainland Dubai licenses carry a 30-day grace period. After that date, you’ll be subject to fines.

2. Is Ejari required for the renewal of my trade license?

Yes, Ejari is a must for renewing your license. The Real Estate Regulatory Authority must certify your tenancy agreement. If you try to renew your license without providing Ejari-certified documentation, your application will most likely be denied, and you may also be charged with penalties.

3. In Dubai, how many types of trade licenses are there?

There are many types of trade licenses available in Dubai, including commercial, industrial, agricultural, tourism, hospitality, and more. An individual or a corporation can apply for any applicable trade license or licenses, depending on the types of business activities involved.

4. What’s the penalty for allowing a trade license to expire?

Putting off or failing to renew your trade license may result in financial penalties, and can hurt your business in other ways, too. Any delays can have a negative impact on your business records, thus limiting your possibilities for expansion in the future. Your company may even be blacklisted if you don’t pursue a proper renewal of your license.

But with the proper understanding and the right partner in your corner, renewing your trade license doesn’t have to be a difficult process. Connect with us at MSZ Consultancy, we’re here to help!

Trade License Renewal in Dubai