You will already be familiar with licensing procedures if you operate a business here. Every company in the UAE requires a licence.
A licence is not something you can get and keep for a single day. Failure to renew a trade licences can lead to severe penalties, including fines, blacklisting, or company closure.
This is a quick guide to renewing your trade licence in Dubai, UAE.
Trade licences issued in Dubai
A valid trade licence is required to operate a business in the UAE. You can legally carry out these business activities in Dubai depending on the type of trade licence that you choose. Engaging in business activities in the UAE is illegal without a valid licence.
These are the three most popular types of Dubai trade licences:
- Commercial Trade licence: This licence is for companies wishing to trade goods within or outside the country.
- Professional Trade licence: This licence is for companies that wish to engage in business activities that involve providing services to clients within the UAE.
- Industrial Trade licence: This licence is for companies interested in manufacturing or selling goods.
Documents required for renewal of Dubai business licence
These documents are required to renew your licence.
- Certificate from Ejari Registration
- Tenancy agreement
- BR/1 form (typed)
- Passport of a business partner. (copy)
- Existing trade licence (copy)
- Request a renewal of your licence
You can renew your licence at the Department of Economic Development, Dubai. Send the completed application form, Ejari attestation and Tenancy agreement to DED.
- Accept the payment voucher.
DED issues a voucher for payment after verifying the renewal application and other documents submitted. Accept the payment voucher.
- licence renewal payment
Use the payment voucher to make the payment for the renewal of your trade licence. After payment is successful, the DED will issue the renewed licence. To renew your trade licence, you may use other platforms, such as registered service centres or mobile applications.
Step to renew your Dubai trade licence
An expired trade could cause problems for your business. To ensure compliance, you must renew your trade licence within the time limit. Here are the steps to renew your Dubai trade licence:
- Verify your tenancy agreement: Before applying for a Dubai trade licence renewal, you must verify that your tenancy agreement is valid and has a minimum of one month remaining. An invalid licence cannot be renewed.
- Fill out the BR/1 form, attach all necessary documents and submit your application to DED. In a matter of days, the body will complete all the required checks and return them to you.
- You will receive the payment voucher once your trade licence renewal application has been verified.
- You need to make a payment. Once you have received the voucher, you will only need to pay the registration fee. That’s it. Your trade licence will be renewed as new. After payment is made, the DED will issue a renewal. You can also apply via the mobile app to renew your trade licence.
There is Dubai Customs Registration for which you can get help from consultant firms in Dubai.
How frequently would you need to renew your Dubai Trade licence?
Dubai trade licence renewal is annual with a grace period of 30 days. Professional help can be obtained from companies like Company Setup Dubai to streamline the process. While you concentrate on your business, the company will keep track of the timeline and ensure everything runs smoothly.
What happens if the trade licence is not renewed on time?
Failure to renew the business licence within the prescribed time frame can result in penalties and other complications that could damage the company’s reputation. These are the most common scenarios.
- Fines – The DED, Dubai, can impose penalties on business establishments that do not have a trade licence. A fine of AED 5500 could be imposed for such an incident. Businesses that fail to renew their licence within the prescribed period are subject to a monetary penalty of AED 250 per month.
- Blacklisting – A company that fails to renew its business licence or continues operations using an expired licence could be placed under the “blacklisted” category. This could result in the cessation of business operations.
- The prohibition of business expansion Business ventures that do not renew future expansion plans hampers their trade licences.
Do I need Ejari for trade licence renewal?
Yes, Ejari must be included in the renewal of your licence. The Real Estate Regulatory Authority must attest to your tenancy contract. You could be fined if you try to renew your tenancy without Ejari-attested documentation.
Trade licence Renewal Fees in Dubai
Your setup type and the size of your UAE business will all impact the cost of renewing your UAE trade licence. You may also need additional approvals or the type of licence that you have.
What does it cost to renew your Dubai trade licence?
A standard renewal licence should cost between AED 8,000 and AED 15,000