Step-by-Step Guide to Your Trade License Renewal Dubai

To start a business in Dubai, a trade license is an important legal requirement, which comes with a specific validity period. Thus, trade license renewal Dubai becomes an essential process. Your UAE business license must be renewed periodically (typically annually) to continue operating legally in Dubai.

For avoiding unsavoury consequences like blacklisting, hefty fines, or the termination of your business, you must be aware about the process of renewing UAE trade license. This blog with provide all the essential information about the same including the procedure, documents required, costs, followed by expert tips.

What is a trade license in Dubai?

A trade license is an official permit issued to businesses seeking to operate in Dubai. It gives business entities legal authorization of conducting economic activities. The trade license is issued both on mainland as well as Dubai freezones.

On mainland, Dubai Department of Economy & Tourism (DET) is the authority which looks after the licensing and registration procedures and affairs. In freezones, the respective freezone authority does the role.

Irrespective of its size and nature, each and every business must mandatorily obtain a suitable trade license in UAE. Here is why you need a trade license in UAE:

• It allows your business to function legally.
• Establishes your business as recognized entity.
• Enables access to UAE’s tax advantages.
• Let us you open a business bank account.
• Allows you to sponsor investor, employee, and family visas.

Does a trade license in Dubai have a validity period?

Yes, every trade license issued by the Dubai government comes with a validity period, typically one year. That is why it needs to be renewed to remain legal and active. Trade license renewal is a process through which businesses update and extend the validity of their existing business license to continue operating legally in Dubai.

If you own or plan to start a business in Dubai, then you should learn about the trade licenses and how to renew them to keep your business operations legal. This blog will help you with the necessary information.

Documents required for trade license renewal Dubai

For the process of trade license renewal Dubai, you need to have some essential documents at hand to avoid any potential issues and latency in the process. The documents include: 

• Passports: You need to have photocopies of the passports of all your business partners. In case you are the sole owner, only the copy of your passport is required. 
• Previous Trade License Copy: To prove your authorized trade practice in the United Arab Emirates (UAE) in the previous year(s), you need to provide a photocopy of your old trade license 
• Valid Tenancy Agreement: Make sure you have a valid tenancy contract issued by Ejari.  It must have been active for at least one month. You must ensure Ejari has reviewed and approved your contract.  In case you plan to move out of that place, then get short term tenancy or simply move to the new office address beforehand, get the new contract, and then apply for renewal of trade license.
• Ejari Registration certificate: You are required to have an Ejari registration certificate to verify your tenancy contract and successfully renew your trade license. It is a must-have to avoid fines 
• BR/1 Form: To complete your license renewal, fill out the BR/1 form and have all your partners fill in and sign it. Before submission, attach all the required necessary documents with this form.   
• Additional approvals: If your business falls under a sector that is specifically regulated by a particular government authority, additional approvals may be required for trade license renewal. For example:

• Healthcare businesses: Dubai Health Authority (DHA)
• Transport businesses: Roads and Transport Authority (RTA)
• Gold and jewellery businesses: Dubai Police
• Food-related businesses: Dubai Municipality
• Real estate businesses: Dubai Land Department

There may be some other legal requirements based on the location and nature of your business. For example, in some freezones you may need:

• NOC from the freezone authority
• Membership renewal with Chamber of Commerce
• Company audits when applying for renewal and so on

It is best to consult business setup experts for more guidance.

How to renew the trade license in Dubai?

For trade license renewal Dubai, follow these simple steps:

Step 1. Prepare the necessary documents

To renew your trade license in Dubai, the first thing to ensure is that your documents are valid and in order.

• Basic documents: You would need your passport copy, visa and Emirates ID copy, current trade license copy, etc.
• Lease agreement preparation: You must make sure that the terms of your tenancy contract have been active for more than a month to avoid failure in renewing your trade license.

Step 2. Submission of the renewal application

To apply for the trade license renewal officially, you must submit an application form (called the BR/1 form in case of mainland companies). Complete the application, fill in relevant details, attach the necessary documents and then submit it to the DET (Department of Economic Development), or to the relevant free zone authority.

The concerned authority will examine your application and check the details and documents you have provided. After thorough evaluation, your application will be either accepted or rejected.

Step 3. Payment voucher

Soon after the submission of your application, the authority will issue you a payment voucher as soon as they approve your application. The fees for trade license renewal Dubai will depend upon the nature and the jurisdiction of the operation of your business.

Step 4. Complete the payment procedure

The trade license will be renewed only after the payment of fees. Finish the payment procedure as directed on the payment voucher. As soon as your payment has been processed, your trade license will be renewed, and the registration process will be complete.

Dubai trade license renewal online through “Invest in Dubai”

To renew your Dubai trade license online on mainland, you can follow these simple steps:

• Log in: Access the authority’s online portal, which can be the Invest in Dubai portal, the DubaiNow app.
• Select service: Look for the option to “Renew License” under the services section.
• Provide details: Fill in the license number/business name, registered email address, and mobile number. Then, click on submit.
• Make application: Information about your license will be displayed on screen along with the estimated trade license renewal fee Dubai. Click on “Continue”. (attach the required documents as asked)
• Make payment: Pay the renewal fees online through the available payment methods.
• Receive license: Download the updated trade license once your application is approved.

DED trade license renewal online can be easily done through the Invest in Dubai portal. Please note that the process may vary due to changes made by the government. For the latest information, always refer to the official DET websites.

Likewise, in each freezone, you can seek online services through the particular freezone’s digital portal.

Trade license renewal fees in Dubai

Trade license renewal cost Dubai ranges from about AED 5,750 to AED 20,000 or more. This may include additional fees for approvals from the governmental authorities. The costs of trade license renewal Dubai depend on factors like the type, size, and location of your business.  

To determine the costs of renewal of different types of trade license in UAE, seek assistance from the authorities concerned or let us assist you here at Dubiz Business Setup.   

Consequences of not renewing trade license in Dubai

Not renewing your trade license in Dubai at the stipulated time can have a lot of unwanted consequences. It being a legal requirement, can lead to issues with the governmental authorities and may deem your business illegal. It may lead to fines, penalties and even the blacklisting of your business.   

This may also impact your business operations, making you unable to carry out daily business functions like bank transactions, signing contracts and even obtaining any required permits.

This may further lead to the tarnishing of business reputation and trust in the business community and with your customers. Audits and inspections by the DED (or the pertinent authorities) might result in legal action, penalties and more.

Here are the main consequences you may face if you fail to do timely trade license renewal Dubai:  

• Financial Penalties: The concerned authority can fine you in case of failure to renew your license. You can be fined up to, 5,000 AED initially and then around 250 AED for every month you fail to renew your license.
• Blacklisting of your company: Your company may get blacklisted by the authorities, making it difficult to conduct any business in future.
• Termination of your company: If you fail to comply with the trade license renewal, DET may terminate your company immediately. In worst case, you won’t be allowed to reopen your company in Dubai ever again.  
• Reputational damage: Business will be viewed negatively if it operates on an invalid trade license. Clients may lose trust, investors could withdraw support, and company will lose its creditworthiness.
• Funds stuck: Upon expiry of your trade license, the bank may freeze your business bank account, and you might not be able to access your funds.

Grace period allowed for trade license renewal in Dubai

In Dubai, you get a grace period of 30 days after the expiry date of your trade license to renew it in case you miss the deadline. Still, it is better not to wait for the grace period, as you may face issues such as being unable to apply for or renew visas, restricted bank access, being flagged in government systems, and reputational and credit damage.

Therefore, it is better to be safe than sorry and initiate the renewal process before your license expires. In the worst case, if you miss the grace period as well, you will not be able to avoid fines and possible legal actions.

Expert tips for renewing Dubai trade license

To ensure your trade license is renewed on time and without complications, here are some expert tips to follow:

• Start the renewal process early: The earlier the better, do not wait until the last moment. Unexpected issues can arise.
• Monitor license expiry date: Be aware of your license’s validity. Set reminders so you do not miss the deadline.
• Keep documents updated and ready: Correct documents always ensure a faster and easier process of DED license renewal.
• Clear outstanding fines or violations: Do not let unpaid fines or past violations delay your renewal. Settle them in advance
• Consult business setup experts: Experts know the game, the tips, and tricks you might not be aware of.

Conclusion

To keep your business running legally, please make sure to get the trade license renewed on time. On the mainland, the DET will be the authority, or the respective free zone authority in free zone areas. Keep your documents updated and submit the application carefully, this will make the process much easier.

Having an expert by your side can be an intelligent move, as they understand the legal landscape of the UAE and can guide you better.

Dubiz assists with trade license renewal in UAE

The process for trade license renewal in Dubai can be overwhelming if you are unfamiliar with it. But no need to worry! For any guidance and assistance, consult our experts at Dubiz Business Setup and they will help you renew your trade license seamlessly. We are your ultimate stop for the best business setup services in the market.

• Expert handling of documentation and approvals
• Transparent pricing with no hidden fees
• Local strong ties with government agencies fasten the process
• Complete assistance for business setup in Dubai and UAE
• Multilingual team of 50+ qualified professionals

Contact Dubiz Business Setup today:

📞 Call: +971 56 369 5485

💬 WhatsApp: +971563695485

📧 Email: info@dubiz.co

Frequently Asked Questions (FAQs)