Getting a trade license is a need to manage business operations in Dubai, UAE. Renewing a trade license in Dubai requires a fair amount of documentation. If this is your first time renewing a business trade license, the process could take some time.
There will be a penalty for any organization that does not submit their renewal application on time. For example, under more dire conditions, both the business license and operations will be suspended. Three different kinds of Business licenses in Dubai are awarded by the Dubai Department of Economic Development.
- Commercial license
- Industrial license
- Professional license
Renewal process for Trade license in Dubai
- Possess a current lease agreement
First and foremost, confirm that the tenancy contract is attested by Ejari and has a minimum validity duration of one month. If the lease agreement is not valid for a minimum of one month, the associated license cannot be sought for renewal.
- Making a Renewal Application for a License
Businesses in Dubai need permission from the appropriate authorities to renew their commercial license. Bring the required documentation when you apply for a license renewal at the DED. All the paperwork required to renew a trade license is listed below:
- Copy of existing trade license
- Photocopies of each business partner’s passport
- Copy of Ejari Registration Certificate and valid Tenancy Contract
- BR-1 Form duly filled
- Complete the Payment
The DED will give a payment voucher after the renewal application. You will receive the renewed business license from the department immediately upon payment.
The cost of a Dubai business license renewal
Business license renewal cost varies according to the type of business, as well as other legal requirements in Dubai. The entire cost necessary for license renewals, including consulting fees, can be ascertained with the assistance of business consultants.
Penalties for Not Renewing a Business License in Dubai:
- Financial Penalties
When a business’s license expires, the DED has the authority to levy multiple fines. If your business’s business license expires, you can face penalties. The fines start to mount as soon as the expiration date passes. If the company keeps running without renewing its trading license, the appropriate authorities could put it on a blacklist. In such a case, all business transactions must cease, and any sponsors or visas issued in the company’s name may be deemed null and void. They have the right to cancel the company’s sponsors and visas.
- Restrictions on Business Expansion
Businesses with expired licenses are prohibited from expanding. If a company intends to grow, it should have a flawless track record.
When you first launch a company, there are several things to consider. Since there is a lot of administrative work to do in the background, you must concentrate on acquiring customers and make sure you meet their needs. It is likely that, as business operations increase, there will be things that you will forget to do after a year or two and that includes license renewal.
Why is it so important for a company to renew its business license?
A lapsed business license could be the reason for the company’s collapse. Make sure you are fully aware of the expiration date and try to schedule the renewal before the deadline if possible.
Allow someone you trust within the organization to complete it or hire a service provider who can relieve you of the burden. A&A Associates Consultancy, a Business consultant in Dubai provides A-Z solutions for Business setup in Dubai. They include the registration of trade licenses and timely notifications for annual renewals so that you, the business owner, can focus on your company. You may need to consult specialists to process the requirements for running a business.
