Step-by-Step Guide to your trade license renewal Dubai

Trade license renewal Dubai is an essential process to ensure the continuity of your business in the Emirates. Likewise, to continue working in Dubai, your business requires undergoing a trade license renewal procedure, annually. To avoid unsavory consequences like blacklisting, hefty fines, or the termination of your business, you must be aware about the process of UAE Trade Licenses and must renew your license on time. 

Trade licensing in Dubai is a part of DED (Department of Economic Development), which is a well-oiled and organized department allowing for a smooth procedure. Do not let the process scare you, learn about trade license renewal Dubai: a step-by-step guide. 

Trade license renewal Dubai: Documents required

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.  

1. 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 
2.  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 
3. 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.  
4. 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 
5. 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.   

You can send these documents with the form to the DED (Department of Economic Development), either online or offline, as per your requirements. The governmental authorities will process and handle the renewal seamlessly, regardless of the method of submission. 

How to renew the trade license in Dubai

For trade license renewal Dubai, follow these simple steps:  

1. Lease Agreement: You must make sure that the terms of your contract have been active for more than a month to avoid the failure to renew your trade license 
2. Gather all your important documents: Gather all your important documents to be submitted with your trade renewal application. Make sure it conforms to all the regulations 
3. Submission of the application: Complete the application and its requirements (the BR/1 form) and then submit it to the DED (Department of Economic Development), Dubai or to the relevant authority. Your form will then be examined by the DED and the necessary evaluation will be carried out by them 
4.  Payment Voucher: Soon after the submission of your application, the DED will issue you a payment voucher as soon as they approve your application. The renewal fees will depend upon the nature and the jurisdiction of the operation of your business   
5. Complete the payment procedure: Finish the procedure of payment 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. 

Costs for the renewal of your trade license

The costs of trade license renewal Dubai depend on factors like the type, size and location of your business. These costs can overall range from about 5,000 AED to 25,000 AED or more. This may include additional fees for approvals from the governmental authorities.   

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.   

Consequences of not renewing trade license

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; these can be:  

• Financial Penalties: The DED (Department of Economic Development) 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 and business partners which may lead to your company getting terminated in the future 
• Termination of your company: Your company may get terminated if you fail to comply with the trade license renewal governmental guidelines and operate illegally. DED may in this case terminate your company immediately and this may also cause you to not be allowed to reopen your company in Dubai again.  

Grace period allowed for trade license renewal Dubai

In case you miss the deadline, DED offers a 30-day grace period for renewing trade license in Dubai mainland. There may be fines if you fail to renew your trade license in the given period. Therefore, you should get your license renewed within the given time limit to avoid penalties.  

Let DUBIZ handle the renewal process for you! 

The process for trade license renewal Dubai can be overwhelming if you are unfamiliar with the process. But no need to worry! For any guidance and assistance, consult our experts at DUBIZ and they will help you renew your trade license seamlessly. We are your ultimate stop for the best assistance service in the market. Best of luck! Here is to long term success and a prosperous future. 

Feel free to contact DUBIZ at +971 562986853 or WhatsApp us at +971 569973630. You can also drop an email at info@dubiz.co for any inquiries.