To-Do Business Activities in Dubai you should know about trade license renewal As Dubai is full of business opportunities due to its good economic and legal development. If you are a trader and have an established business in Dubai, then you must have a trade license. It is important for you to know that licenses are not a one-time thing and if you want to continue your operations, you must renew your trade license in Dubai.
In this article, we will explain the whole process, the documents you will need, and give you all the information you need to renew your trade license in Dubai. Let’s check the content we have prepared for you:
- Trade license in Dubai
- How do you know if you should renew your trader license in Dubai?
- Documents required to renew your trade license in Dubai.
- What is the process to renew your trade license in Dubai?
- How can you know if trade license renewal requires additional approvals?
- Why is Ejari Tenancy Contract important for renewing your trade license in Dubai?
- This can happen if your license expires.
- Grace period.
- How often must the trade license in Dubai be renewed?
- What is the cost and fees to renew the trade license in Dubai?
- How to renew the trade license in the free zones?
- Documents required to renew trade license in Free zones.
- Is it possible to renew the trade license in Dubai online?
- Get professional advice on renewing your trade license with Connect Services Middle East.
1. Trade license in Dubai
Anyone wishing to establish a business in Dubai must comply with a series of rules and requirements that the State demands the company to be legal. This means that the State will assign the requirements according to the business activity of the company. One of the most common is the trade license in Dubai which is used to trade, import, or export products and services.
It is worthy of note that the traders must renew these licenses from time to time. And it is the trader’s responsibility to keep the license in force. Otherwise, they will have to pay penalties and fines that will damage their business. So, the State requires documentation and the fulfillment of processes for the trader to renew the trade license in Dubai and you should know the Types of trade licenses and the Dubai trade license cost
2. How do you know if you should renew your trader license in Dubai?
The following are three ways to know whether or not you should renew your trade license in Dubai:
- The first is by checking the expiration date on the original trade license documentation. This way you will be able to know from which date you can renew it.
- The second option is to ask the company’s training agent, who should have all this information.
- Finally, you can check the status of your trade license online.
3. Documents required to renew your trade license in Dubai.
In order for the traders to renew the trade license in Dubai, they must have the following documents.
- Photocopy of your trade license.
- Certified lease contract (must be valid for no more than three months).
- Photocopy of passports from business partners.
- BR/1 form that complies with all the rules.
- Typewritten renewal form.
- The Ejari registration certificate.
4. What is the process to renew your trade license in Dubai?
It is important to know that there are a series of steps to follow to renew the trade license in Dubai. We will mention them down below:
- Firstly, you have to gather and order all the necessary documentation. For the renewal process, it is necessary for traders to have all the documents up to date. There are some of them that require preparation time. Such as the lease contract that must have at least one month of validity. Otherwise, the trader will not be able to renew the trade license.
- Secondly, be aware of traders can apply for the lease. They must use Ejari, which is an online registration system where they must register all Dubai leases.
- Thirdly, make and complete the renewal form. To renew the trade license in Dubai, the traders must fill a form with the name BR/1. And complete all the details that appear there.
- Then, obtain the permits that are related to their business. Traders must acquire all the permits corresponding to the commercial activity they decide to develop. Depending on the type of business, they must apply for and obtain some approvals to renew the trade license in Dubai.
- Moreover, submit all documentation. All required documentation, including the BR/1 form. Besides, traders must submit copies of the passports of the company’s partner to the Department of Economic Development (DED) for approval.
- Finally, make the payment for the renewal of the trade license in Dubai. Once the trader completes the process of sending the documents the Department of Economic Development evaluates the application. In case the DED approves it, it’ll send a payment voucher and the trader must pay it promptly. Once the trader makes the payment, complete the renewal process.
5. How can you know if trade license renewal requires additional approvals?
So, you may be wondering; how can you know if the renewal of the trade license requires additional approvals. The truth is that this will depend on the type of commercial activity you decide to give to the company and how it is constituted. For example, in the case of companies that have commercial activity in the medical area, they must obtain the approval of the Ministry of Health and Prevention.
Other examples are restaurants or companies that operate with food; these need the approval of the Department of Food Safety before the renovation.
To know the requirements you need to meet to renew your license according to the commercial activity of your company, hire a specialized consultancy that can guide you through the best way to make this whole renewal process simpler and more effective and Are you interested in obtaining a Golden Visa? Here’s how
6. Why is Ejari important for renewing your trade license in Dubai?
As mentioned above, Ejari is a mandatory element of the trade license renewal process. And that is because the Real Estate Regulatory Authority initiated this online system where all leases must be registered. The purpose of this is to legalize the relationship between tenants and landlords in Dubai. So, your rental contract must be certified by Ejari, if not, your application will be rejected.
7. This can happen if your license expires.
It should be noted that it is important for traders to note that if the trade license in Dubai expires, that could bring problems for their business ranging from fines and penalties to license cancellation. While there is a grace period, there is a time limit to renew the trade license in Dubai before the DED begins daily penalties.
In fact, fines or penalties may vary depending on the day and type of trade activity. Below are some of the penalties you may face if you do not renew your license on time:
- If they are late with the renewal of the trade license, they will be fined AED 250 per month.
- The government will prevent the company from continuing its trading activities.
- The State could cancel the Visa of the traders, which means that they would not be able to enter or leave the territory.
- Traders will be fined up to AED 5000 if they continue trading with an expired license.
- They can blacklist the company, which would bring a bad reputation and make it difficult to stay in business.
- Authorities could deport the owner and shareholders of the company out of the United Arab Emirates.
For these and more reasons, it is necessary to keep the licenses in force to avoid the company going bankrupt. In addition, to avoid that they cancel all the documentation that is in order. Many companies tend to hire outsourced companies to manage all the important documentation in a rigorous manner to keep all the company’s operations safe and Do you know what a partner visa is and how to obtain it?
8. Grace period.
As mentioned above, the Department of Economic Development grants traders a grace period. It consists of 30 days after the expiration date of the trader license in Dubai. Once this period has expired, the above-mentioned penalties will be applied.
9. How often must the trade license in Dubai be renewed?
You should keep in mind; traders must renew their trade licenses in Dubai every year. However, it is advisable to start before the expiration date due to the DED requesting several documents. And the time it takes for some of them to be delivered and just All you have to know about Designated Zones
10. What is the cost and fees to renew the trade license in Dubai?
You should be aware that not all companies have the same commercial activity. So, the price of the renewal of the trade license in Dubai will depend on the individual requirements of each organization. Some factors that may influence are the size of the company, the sector, and the type of business activity it carries out.
Also, it might be possible that the trader requires additional approvals, which may also influence the cost of trade license renewal. However, the average price is from AED 8,000 to AED 15,000, as mentioned before, prices may vary.
11. How to renew the trade license in the free zones?
Please note all companies located in the United Arab Emirates must have their documentation up to date. So, companies established in free zones are no exception. While entrepreneurs who establish their companies in free zones have advantages, they must also comply with the necessary documentation for the company to remain legal.
You should recall, as mentioned above, that an expired license can mean many problems for the organization and its shareholders. For this reason, the Dubai Development Authority issues notice to companies to renew their licenses, notifying them of the expiration date and the process to renew it.
It is important to highlight that all traders who have their companies in Free Zones while they are renewing their trade license in Dubai must review and verify all the data of their Articles of Incorporation and Companies Registry.
As we know, there are different types of companies in the free zones, therefore, the procedure to renew the trade license in Dubai may vary according to the type of economic activity or how the company is constituted. However, in general terms, the process of renewing the trade license is the same with some variations, the same as the cost of renewing the trade license and Check out this complete guide to setting up a business in the free zones.
12. Documents required to renew trade license in Free zones.
To renew a trade license in Dubai, traders must gather a series of documents and approvals, in the case of the renewal of the license in free zones it is the same. Of course, depending on the type of activity, it may require more documentation or permits. Some of the documents that the trader should have on hand are:
- The No Objection Certificate, if applicable.
- Copy of the trade license or in some cases, depending on the free trade zone, the original document.
- If requested, the P.O. Box confirmation renewal.
- An audit report, if applicable.
- Copy of the passports of the shareholders of the company.
- The renewed lease agreement.
- Application forms to the renewal of membership to the Chamber of Commerce.
- And other documents that you may need depending on the free zone or the activity of your company.
13. Is it possible to renew the trade license in Dubai online?
As renewing the trade license in Dubai is a lengthy process with many requirements, the Department of Economic Development created a portal or website. It allows entrepreneurs to start the process of renewing their licenses.
They must start with setting up an account on the website, then submit all the necessary documents so that they can activate their accounts. Once the trader has their account with “Active” status, they can renew the license and make payments through the portal annually.
It is important to emphasize that although it seems a simple process, it is better to work hand in hand with experts who have knowledge of the subject and can guide traders with the proper development and management of the organization, avoiding fines or penalties.
14. Get professional advice on renewing your trade license with Connect Services Middle East.
While the DED provides guidelines for initiating the trade license renewal Dubai process, with the help of Connect Services Middle East, you can renew your license without the risk of fines or penalties. Your business is important and we offer specialized advice to help you manage it in the best way possible.
At Connect Services Middle East, we offer consultancy to help our clients establish their businesses, manage business licenses, visa services and attend to all the requirements necessary to grow their business effectively and in compliance with legal requirements so You might be interested in why you should set up a business in Dubai.
Would you like to contact Connect Middle East for trade license renewal dubai or for more helpful information? You can contact us at any time if you want to request our services by calling us on +97143799111. In addition, you can email us at firstname.lastname@example.org or you can check our website to obtain more information.