To continue working in Dubai, your business requires undergoing a Trade License Renewal procedure, annually. To avoid unsavoury consequences like blacklisting, hefty fines or the termination of your business, renew your trade license now.
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.
Don’t let the process scare you, learn how to renew your trade license in Dubai: a step-by-step guide.
TRADE LICENSE RENEWAL: DOCUMENTS REQUIRED
You need to have some essential documents at hand to avoid issues and latency in your renewal process.
- Passports: You need to have photocopies of the passports of all your business partners. In case you’re 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 licence
- Valid Tenancy Agreement: Make sure you have a valid tenancy contract is issued by Ejari. It must have been active for at least one month. You must ensure Ejari has reviewed and approved your contract.
- Ejari Registration certificate: You are required to have an Ejari registration certificate to verify your tenancy contract and successfully renew your trade licence. 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 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
After the due documentation, follow this process for submission and renewal of your trade license:
- 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
- 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
- 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
- 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
- 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 renewing your trade license can depend on a number of factors like the type, size and the 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 for your specific business, seek assistance from the concerned authorities or let us assist you here at Dubiz.
CONSEQUENCES OF NOT RENEWING TRADE LICENSE
Not renewing your trade license 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 as 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 TO RENEW TRADE LICENSE IN DUBAI
DED offers a 30-day grace period for companies in Dubai mainland to renew their trade licenses. There may be fines in case you fail to renew trade license in the given time, and you should get your license renewed within the given time frame to avoid penalties.
For further assistance, consult us here at Dubiz and we 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’s to long term success and a prosperous future.
