Dubai is a business hub in the UAE and across the Middle East. It has always been an attraction for foreign entrepreneurs and investors. Its strategic location and business-friendly policies make it a premier choice for a business setup.
When you are setting up a business in Dubai, you must have a business trade license in Dubai. It is mandatory to operate your business with smoothness and ease. Trade licenses are usually required to be renewed every year. Yet, the renewal depends on its validity.
In this guide, you will get the information about the trade license renewal process, the estimated cost, and other requirements.
Importance of trade license renewal
A trade license is an official document that shows your company registered in the UAE. It is usually valid for one year. After one year, you need to renew it. It is very important to renew your trade license on time. Because then you can avoid any issues and can run your business operations smoothly.
Whether your business setup is in a free zone or Dubai mainland, the license must be renewed before expiration. If you fail to renew your business license before it expires that may result in a fine from the Department of Economic Development.
Remember that license renewal is a legal requirement to continue your trade activities in the UAE. By renewing your license within the time frame, you can avoid any penalties.
How to renew trade license in Dubai?
In order to renew your license in Dubai, you need to follow these steps:
1. Tenancy contract and EJARI registration
In order to apply for trade license renewal in Dubai, you must have a valid tenancy contract. At this stage, if your EJARI is expiring soon, you can renew it before. Meanwhile, if you need to change your office location, you can get a new tenancy contract at this step.
2. Apply for a renewal at DED
In this step, you can apply for a license renewal through the Department of Economic Development. You will get a receipt from the DED, and it allows you to make any changes if required.
3. Visit Dubai Court
This step is really an additional step. It is only needed if there are any updates and changes are required. You need to visit Dubai court, if you need to change:
- Any shareholder details including name, address, or others
- Number of shareholders
- A local sponsor
- Any additional business activities
- Any other relevant information of all shareholders.
4. Submit required documents to DED
Now, it is time to submit all the required documents to the Department of Economic Development in Dubai.
The required documents include copies of the license, Emirates ID of all shareholders, passport copies of all shareholders, residency visas of all shareholders, Ejari, and MoA.
5. Get the fees voucher
Now you need to wait till your application verification. When it gets verified, the Department of Economic Development issues a payment voucher. It will be used for the payment of license renewal fees.
6. Pay the fees
You can pay the fees to complete your business registration in Dubai. After that, you are good to go. Your license will be renewed.
Documents Checklist
To renew the license in Dubai involves preparing all the necessary documents. Here’s a document checklist:
- BR/1 form
- Tenancy contract or Ejari
- A copy of the existing trade license.
- Passport copies of all business partners.
- Copies of the residence visa of all shareholders
- A copy of the Emirates ID of the business owner
- Memorandum of Association copy
- A copy of the Commercial Register (CR)
- Proof of payment for renewal fees
- Other more required documents according to the business activities.
Things to Consider
For a business setup in Dubai, you must have a trade license. As earlier mentioned, the license must be renewed before it expires. Before renewal, you might need to consider some important changes, if required.
Below are the things you need to consider before starting the process of renewing your Dubai trade license:
- If there are any changes and additions to business activities make sure to update before renewal.
- If there are any changes related to the shareholders, it is important to update. It must be updated before license renewal. For example, if you need to add a partner or remove a partner in your business.
- Any changes in the company’s location must be updated before the renewal.
Cost to renew trade license in Dubai
Obtaining a business trade license in Dubai will offer a cost ranging from 15,000 to 18,000 AED. But the cost may vary. It depends on different factors. The factors such as if you need to make any amendments or changings in your previous tenancy contract, details or others.
Penalties for trade license renewal delays in Dubai
If you do not renew your business license on time, you will end up with fines, and potentially deportation. It depends on the situation and duration of delaying license renewal. You will get a fine every day after your license expires, up to a maximum of AED 1,500 to AED 3,000 per month.
The fine cost can vary according to your business license and the jurisdiction you get it from. It is advised to renew on time to save yourself from any penalties.
Conclusion
In conclusion, renewing your trade license in Dubai is a pretty easy and simple process. Don’t forget to mark your calendar for the renewal date to avoid any fines and keep everything running smoothly.
You can renew your trade license in Dubai without any worries with us. Emirates Business Setup in the market for years. Our main goal is to help our business owners with business setup services in Dubai.
We got you covered with business registration, tax and accounting, and other PRO services in Dubai. Let us be your one-stop solution for your business needs. Contact us today at +971585812301 to get your renewal done!
