Dubai Business License Renewal
A business license (also called a trade license) is an official document in the UAE which authorizes a company to carry out activities within the United Arab Emirates. It is illegal to operate in the UAE without this official permission. The business license is issued by the Department of Economic Development of the relevant Emirate (for شركات البر الرئيسى) or by the relevant authorities of the Free Zones (for free zone companies).
A business license is usually issued for a period of one year and must be renewed yearly. Dubai trade license renewal is obligatory for businesses to maintain good legal status and to operate in compliance with the regulations.
The process of trade license renewal seems to be clear and straightforward, but it requires time for the preparation of documents and verification thereof as well as for interaction with the respective authorities. ITA Business Consultants can assist you in this process by expertly managing each step, ensuring that all requirements are met efficiently and accurately.
Possible Penalties
If the deadline for renewal is missed and the trade license is expired, it can result in different consequences including fines, blacklisting of the company, and suspension of the company’s business.
The amount of penalties imposed may vary from region to region. For example, in Dubai the penalties start from 250 AED for late payment and may reach 5,000 AED for operating without a valid business license.
If the business is blacklisted by the Department of Economic Development, the company is not allowed to continue its business operations. There can be serious consequences for the officers of the company: business visa and other types of visas can be annulled (with effective travel ban), the management of the company may be deported from the UAE. Failing to renew the trade license may cause legal actions against the business.
Process of Company License Renewal in Dubai
Trade licenses in Dubai may have maximum validity of 2 years, but mostly business licenses are valid for one year.
The process of renewal of a trade license in Dubai mainly consists of submission of the valid tenancy agreement, license copy, shareholders’ passport copies and Emirates ID copies, plus paying the fees. The cost of a license renewal depends on the type of your business license. First, you need to carefully check the documents which will be submitted ensuring they are valid and correct.
You may proceed with renewal of your trade license both online and offline choosing for yourself the most convenient option.
The offline Dubai business license renewal process consists of the following steps:
- 01
Visit any of the available service centers.
- 02
Provide the company documents.
- 03
Once the renewal is approved, you will receive a voucher to make the payment.
- 04
After the payment is made, the access link with the renewed license will be sent to your mobile number.
The online renewal procedure is similar to the offline process but is applicable only if the company address has not changed.
The grace period to renew a business license of a mainland company in Dubai is 30 days after the expiry date of the existing license, but not waiting till the deadline and starting the renewal in advance are highly recommended.
Documents Required for Renewal License Dubai
The list of documents required for renewal may vary depending on the jurisdiction and the type of business.
Typically, to renew a business license the following documents must be provided:
- A photocopy of the valid passport of each business partner;
- A photocopy of the valid Emirates ID of each business partner;
- A photocopy of the current business license;
- Valid Ejari to confirm the legal address of your company.
To apply for Dubai trade license renewal you must attach a copy of the valid license as a proof of your right to conduct business in the UAE.
The Ejari must be valid at least for one month to proceed with renewal of the business license.
While applying for renewal of a business license for a free zone company, you may have to provide additional documents:
- 01
No Objection Certificate from the relevant authority or sponsor;
- 02
Certificate of Continuity of Existence or Good Standing as a proof that the business has an active status and complies with the regulations;
- 03
Current business license – for a branch of an onshore UAE company.
If a trade license for a branch of a mainland UAE company is renewed, the authorities may also ask to provide a copy of the current business license of the parent mainland company.
Our Assistance in Renewing a Trade License in Dubai
At ITA Business Consultants we will guide you through the process offering various services like:
- Handling the paperwork
- Liaising with the relevant authorities
- Processing of payment of renewal fees
And other services to help your business to stay functioning in compliance with the regulations. We will keep track of the deadlines to ensure the procedure is completed on time. With our help you will navigate the process of renewal of your trade license smoothly and in compliance with all legal requirements avoiding needless troubles. Should you have any questions with regard to the renewal of a business license, please feel free to contact us.
Start License Renewal
بفضل خبرتنا التي تزيد عن 10 سنوات وأكثر من 1500 مشروع ناجح، تعد شركة آي تي أي لاستشارات الأعمال شريكك المفضل للتخطيط الضريبي الدولي. يتعاون فريقنا المكون من أكثر من 200 خبير مع أكثر من 150 بنكًا دوليًا في 40 ولاية قضائية. هل أنت مستعد للارتقاء بأعمالك؟ املأ النموذج ودعنا نتواصل!
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FAQ for Trade License Renewal Dubai
It is a legal requirement to have a valid trade license to conduct business in the UAE. If the company does not renew its trade license, it will be penalized and it cannot operate until the business license is renewed.
The required documents generally include the existing trade license, tenancy contract, passport copies of the owners, and other specific documents depending on the emirate and business activity.
Renewal fees of business licenses in the UAE vary from emirate to emirate and from free zone to free zone and depend on the company’s activity and structure size of the business and several additional factors. In Dubai it ranges from 8,000 AED to 15,000 AED.
The grace period for Dubai business license renewal varies depending on the emirate and the type of license. Confirming the grace period with the respective licensing authority is recommended. For example, in Dubai you will have 30 days after the expiry date of the existing license and during these you can renew your business license without a penalty.
Typically, it takes 1-2 business days if the company provides the full package of the required documents and processes the payment on time.
The renewed trade license can be downloaded through the access link from the portal of the licensing authority once the renewal process is completed.