Trade license Renewal in Dubai
Every organization in Dubai must have a trade license to run their business, which makes it a mandatory process to renew the license every year. It is the Department of Economic Development (DED) that looks into the licensing process in Dubai. Renewing licenses is a complicated process and requires a lot of documentation. Licenses must be renewed timely as well or else it may lead to penalties, fines, and even a ban of business. Before getting into the license renewal, one must know the types of licenses in Dubai issued by the DED.
Any business activity that involves in the sale of tangible products must apply for a commercial license to start its functioning.
Every manufacturing and industrial company should acquire an industrial license to function.
Providing services that require a special skill for an exchange of fee comes under the professional category. It is mandatory to have a professional license to do the same.
Renewal of trade license in Dubai mainland:
In order to renew a trade license in Dubai, any entity should have a tenancy contract valid for at least one month and it must be attested by Ejari (Online registration system by the Real Estate Regulatory Agency.) Renewal of licenses cannot be done if the tenancy contract does not have validity.
Application of the license renewal should be made at DED with the following documents:
- Typed BR/1 form
- Ejari Registration Certificate and a photocopy of the tenancy contract
- Photocopy of the current trade license
- Passport photocopies of all the business partners
After the submission of the documents, you will be redirected to the DED payment voucher. Once the payment procedure is complete, you shall receive your renewed license from the channel.
Documents required for license renewal in the free zones:
- Trade license copy or original document (depends upon the free zone)
- Audit reports (depends upon the free zone)
- P.O box confirmation renewal
- Passport photocopies of the share holders
- Other documents depending on your business activity and free zone.
The DED is uncompromising when it comes to the licenses and its renewal; if anyone fails to renew their license in time it may lead to severe consequences. Huge penalties and fines may be imposed on the business entity and may even end up with the cancellation of the license and ban for further business activity. The DED imposes fines every single day from the date of expiry of the license. The penalties are of varied kind:
- Monetary penalties:
If a company is found working without a license, the penalty could be AED 5000; delay or failure to renew the license within the said time could be AED 250 per month and for an additional office with an existing license without permission can be fined AED 2000.
- Black listing of the companies:
Failure in renewing trade licenses within the allotted time can lead to black listing your business and could be the end for the business too.
- Restriction on expansion:
Apart from the monetary penalties and black listing of the company, the DED can even stop your business from further expansion in case you fail to keep the records clear.
It is very important for the companies to renew their licenses, as the expiration can even ruin your entire company. The companies will be banned by cutting the license and even your transactions can be seized and visas and sponsors listed by the company will no longer be valid.
Trade licenses are mandatory for the existence of any business, which is why organizations appoint someone specifically for this purposes. Outsourcing of these activities is one of the most common trends followed by business organizations as it will all be done with utmost care and will be renewed in time without staking the organization’s future.
The outsourcing company will help you renew your licenses on time every year which will help you to focus more on your core projects. They will keep you updated on a regular basis and will also file the documents when necessary. In case any documents are incorrect, they will make sure to update it as well.
Jumeira Consultants is a highly reputed business consultancy firm, offering high-quality services. Our team ensures to provide you complete assistance in trade license renewal and any other service related to your business.