A Business license is essential when establishing a business in the UAE. Businesses are required to renew their trade license on a yearly basis. Trade license renewal ensures compliance with the law and an efficient business operation.
The Department of Economic Development (DED) oversees the UAE trade license renewal procedure. The DED has an organised and straightforward license renewal procedure in Dubai.
We’ve compiled all the information you need about UAE trade licenses in this blog, whether you’re a beginner or want to learn more.
What is a Trade license?
A trade license is an authorisation the UAE government grants that enables companies to operate legally within the nation. Each firm operating within the UAE must have a trade license regardless of size or industry. Here is a list of some of the benefits that a trade license provides in the UAE:
- With a trade license, companies can operate legally in the Emirates.
- A trade license permits companies to conduct financial activities and open bank accounts.
- A trade license provides access to advantages and services offered by the UAE government.
- A trade license protects companies from judicial risk.
As per the kind of business and activity being conducted, each trade license will have varying validity periods.
Trade license renewal: Documents required
The following is a list of the required paperwork for a trade license in Dubai.
- Ejari registration: To renew your license, a valid registration certificate from Ejari, which verifies your tenancy certificate, is required.
- Tenancy contract: An active tenancy contract is necessary to renew your trade license. Ensure that Ejari has reviewed and approved your contract.
- A previous trade license copy: As you submit a renewal application, please enclose a copy of your old license.
- BR/1 form: To complete the license renewal process, you must fill out the BR/1 form. Each current partner must fill out and sign this form. Please note that you must attach all the necessary documents to this form.
- Photocopies of each partner’s passport: You must provide copies of each partner’s passport connected to your company. If you are the only owner, then you must only provide a copy of your passport.
You can submit your renewal form online or in person, along with the necessary documents, to the Department of Economic Development.
UAE Trade licenses: Renewal procedure
Here is a detailed guide on how to renew your trade license in 2024:
- Submit an application to DED: To renew your trade license, you must fill out the BR-1 form along with the necessary paperwork and submit it to the Department of Economic Development.
- Payment voucher: After the approval of your application, you will receive a payment voucher from the Department of Economic Development. To complete the payment procedure, you must follow the instructions on the payment voucher. Once the payment has been successfully processed your trade license will be renewed and the registration process will be finished.
- Mobile app: To save time, individuals can also renew their trade license via the Department of Economic Development’s mobile application.
If you wish to renew your trade license hassle-free, you can seek the help of our professionals at Dubiz.
UAE trade license: Cost
The cost of a trade license depends on several factors, such as the economic zone and jurisdiction. The trade license renewal cost in the UAE usually starts from AED 25,500*. Please note that these numbers are just estimations and may vary as per individual needs and the nature of business activity.
Please speak with our professionals at Dubiz for an exact price on renewing a trade license in the United Arab Emirates.
Trade license renewal grace period
Dubai mainland offers a 30-day grace period for trade license renewal. Individuals who fail to renew their license within this grace period must pay a certain fine. The repercussions of not renewing your trade license in the United Arab Emirates on time include the following:
- Fines: Fines are associated with not renewing your trade license on time. Businesses that fail to renew trade licenses on time are required to pay a certain amount of fine each month.
- Blacklisting: Any company that carries its operations without renewing its trading license will be blacklisted.
- Prohibition on business expansion: Any company wishing to grow and launch new ventures is prohibited from doing so without first renewing its trade license.
Advice for timely trade license renewal:
- To ensure that you do not miss the deadline for renewal, it is advised that you set a reminder in your calendar.
- It is an excellent strategy to speak with the local government’s office to determine the renewal deadline and the necessary procedure.
- It is advisable to keep all the necessary paperwork in hand, such as tax returns, insurance documentation, etc.
- To avoid potential problems, sending in your application early for renewal is better.
Renew your trade license with Dubiz !
Even though the trade license renewal process is straightforward, beginners might still have to overcome some hurdles. For this reason, it is best to consult with our experts at Dubiz, who will support you at every stage. Our team comprises fully trained professionals and experts in the renewal process.
Our professionals at Dubiz will support you at every stage, from seizing commercial opportunities to ensuring your company complies with all legal requirements. Contact us at info@dubiz
