Not just products, but some documents also expire. But the best part is the latter can be renewed unlike the former. One such document is a trade licence. In Dubai, trade licences are valid for one year. And you are not oblivious to the fact that operating with an expired licence is an offence in Dubai, subject to a penalty.

Trade licences in Dubai can’t be taken lightly. You must know when it’s due for renewal beforehand and be ready with the documents that are required to complete the process. And that’s what we are here for, one more time, to enlighten you on the trade licence renewal process in Dubai.

Importance of Business Licence Renewal in Dubai

Holding a valid business or trade licence is the foremost requirement for conducting business in Dubai. When we say valid, we simply mean the licence is in active status. Just like you can’t travel abroad if your passport expires or can’t drive if your driving licence expires, you can’t do business if your trade licence expires. Trade Licences in Dubai come with a validity of only one year, subject to renewal every year. And this must be your priority, as trading with an expired trade licence is illegal, and you don’t want to be penalised for not renewing it on time.

Consequences of Not Renewing the Trade Licence in Dubai

You should apply for the trade licence renewal 1 month before the date of expiry to steer clear of the consequences mentioned ahead:

  • Monetary Penalty: A fine of AED 5000 can be imposed on businesses operating in Dubai with an expired licence. Traders may face a fine of AED 250 per month for committing the same offence.
  • Termination of Operations: Businesses in Dubai operating without renewing their licence when it was due can be blacklisted from operating in the UAE as well. Blacklisting means the cancellation of all your employees’ visas and sponsorships, the stopping of your transactions and the annulment of your residence visa.
  • Banishment from the UAE: Establishments can be ordered by the DED to shut down their operations if they are found operating on an expired trade licence in Dubai. An entity banned from the country can’t establish its business again here in most cases.

The Process of Trade Licence Renewal in Mainland Dubai

As we have mentioned many times that getting a trade licence is easy and straightforward. So is the renewal process, even a lot easier! However, after the completion of one year, the authority needs to recheck the paperwork periodically to allow you to continue your business in Dubai for the next year. If you are already working with a business formation specialist like Adam Global, you don’t have to worry about anything regarding the renewal process. They keep a tab on the due date for the licence renewal and get in touch with you for the documentation way before its expiry date. If not, then you still can find the right business advisor in Dubai and outsource the task to them to save your precious time and energy. Knowing the process of trade licence renewal helps you if you want to proceed under your own steam.

Pre-preps: Before applying for the licence renewal, you must ensure you have all the required documents handy. Here is the list of those along with details:

  • A Typed BR/1 Form: Compulsory for Dubai trade licence renewal application, BR/1 form is a form that must bear necessary details about the applicant and signatures of all business partners. The duly completed form must be submitted to the DED department for approval to initiate the process.
  • Ejari Registration Certificate and Tenancy Contract (copy): Because of legal reasons, your Dubai tenancy agreement must be valid for at least one month. Further, it must also be attested by the Ejari. If you fail to do so, then get ready for the rejection of your trade licence.
  • Current (old) business trade licence (copy): A copy of the original old licence also must be there in the set of supporting documents for DED licence renewal.
  • Business Partners’ Passports (Copies): Submission of passport copies of all your business partners is imperative as well at the time of trade licence renewal in Dubai. If there are no stakeholders in your business except you, submit only your passport along with the application.

Next Steps:

In the UAE, the Department of Economic Development (DED) is responsible for the issuance and renewal of mainland business licences. You may file your licence renewal application in Dubai either online or offline. You may also pass the buck to one of the best business setup advisors in Dubai, such as Adam Global. No matter, what method you opt for, submission of the preceding documents to the authority for renewal of your DED licence is obligatory. Once you are ready with these documents, follow the next steps to complete the process:

Step 1. Arrange all the listed documents and double-check your RERA documents for validity as required

Step 2. Fill up the application form (BR/1 form), get it signed by all the stakeholders concerned, attach all the relevant documents and finally submit them to the DED.

Allow a few days for the authority to perform checks on the submitted documents. You will be sent a payment token once the verification is done and your licence renewal request is approved.

Step 3. Receive your payment token from DED and pay the Dubai general trading licence fee using it. At this stage, DED reviews your application, verifies the documents and renews the licence if it finds no discrepancies.

The Cost of Dubai Trade Licence Renewal 2022

The trade license renewal fee is not different from the trade licence issuance fee. This simply means you have to cough up almost the same amount that you paid at the time of receiving the fresh trade licence. The trade license renewal fee in Dubai usually swings between AED 8,000 and AED 15,000 excluding the service charge/local service agent fees.

The Process of Trade Licence Renewal in Dubai Free Zone

The Free Zone business licence renewal process is a little different from the DED licence renewal process. You might have to follow the below-mentioned steps:

  • Gather all the relevant documents, including the existing trade licence and a no-objection certification (if applicable)
  • You may need a Certificate of Continuity of Existence as well (in case you own an onshore UAE company)
  • Get in touch with the authority in charge of the free zone your business is located in

One-Stop Solution

Undoubtedly, the trade licence renewal process in Dubai is as easy as pie, but remembering the due date is not. We don’t see any other reason for not renewing it on time. Who on the earth would want to confront penalties, legal proceedings, or even a ban from the country just because they missed the due date? I think, nobody! Trade licence renewal is just one thing, there are so many other mandatory tasks that you have to accomplish every year such as financial audits, VAT returns filing, VAT refund requests filing and not to mention corporate tax filing. Keeping tabs on everything is not a piece of cake for a business person who is already juggling a lot of things. Working with an experienced business setup advisor in Dubai such as Adam Global gives you mental peace regarding a wide range of mandatory to-dos, including business licence renewal. Get in touch with your Dubai business advisor at Adam Global for any of your big-little business needs.

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