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How Would You Renew Your Trade License in Dubai, UAE?

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How to Renew Your Trade License in Dubai

A pre-requisite for directing commercial activities in Dubai, UAE is to secure a trade license. The process to Renew trade license in UAE necessitates processing loads of paperwork. Renewing a business trade license could be lengthy if this is your first time doing it.

If any organization fails to file for the renewal on time, there will be a penalty. For instance, in worse circumstances, the business license will get suspended along with the operations. The Dubai Department of Economic Development grants three types of licenses for businesses.

• Commercial license

• Industrial license

• Professional license

The Process for Renewing a Trade Licence in UAE is as follows:

1. Have a valid lease contract

First of all, make sure the tenancy contract of the firm is attested by Ejari with a validity period of a month at the minimum. The related license cannot be applied for renewal if the tenancy agreement is not current for at least one month.

2. Applying for Licence Renewal

To renew their commercial license, businesses functioning in Dubai must acquire approval from the relevant authorities. Apply for a license renewal at the DED and bring the necessary paperwork with you. The following is a list of every document needed to renew a trade license:

• A BR-1 form fully typed

• A replica of the current business trade license

• Photocopies of the passports belonging to each business partner

• The Ejari Registration Certificate and the Tenancy Contract

3. Complete the Payment

The DED will assign a payment voucher upon application. After you have the voucher, continue with the payment process. You will receive your renewed license from the channel immediately upon payment.

Cost of Renewal of Business License in Dubai

Business license costs vary depending on the nature of business activity and other requirements under the UAE laws. Business Business Consultant can help determine the total expense required for license renewals, including their consultancy fees.
Penalties for Not Renewing a Dubai Trade Licence

1.Monetary Penalties

The Dubai Department of Economic Development is authorized to impose multiple forfeits on a business when its license expires. AED 5000 could be charged as a fine for operating a business without a license. AED 250 for not renewing a license within the allotted term, and AED 2000 for adding office to an existing license without authorization.

Your business may get punished for having an expired business license. Any payment delay may also incur fines for the involved business. Businesses may levy a monthly fine, as was previously indicated. The moment the expiration date passes, the fines begin to accrue. Should the business continue to operate without renewing its trading license, the relevant government may place the company on a blacklist.

In such an instance, the business must stop all transactions, and any sponsors or visas issued in the name of the business may be declared void. If the license is not renewed within the allotted time, the business’s ability to grow may be restricted.

2.Company’s black listing

If the company keeps up its operations without renewing its trade licenses, it may be placed on a blacklist and forced to cease all of its business dealings. Visas and sponsors under the firm may be revoked by them.

3.Restrictions on Business Expansion

In these cases, businesses with expired licenses are prohibited from growing. If a company intends to expand, its record must be spotless.

When you first launch a firm, there are several things to consider. While you have a lot of administrative work to do in the background, you must concentrate on obtaining clients and consumers and make sure you meet their needs. It’s likely that, as the workload accumulates, even if you start organizing, there will be things that you forget to do after a year or two.

Why a renewal of a business license is crucial for a company?

A lapsed business license might cause the company to fail. Be sure you are well aware of the expiration date and, if feasible, schedule the renewal before the stipulated deadline. Permit someone you trust within the organization to complete it or collaborate with an outside partner who can relieve you of the burden. In any case, maintain the validity of your license; otherwise, your company will unavoidably suffer, and you may lose everything.

There are several business consulting firms in Dubai. Organizations like Business Consultant provide A-Z company formation solutions, encompassing trade license registration and timely reminders for annual renewals, so you, as the business owner, may concentrate on your enterprise. It can be necessary for you to ask experts about processing the requirements for managing a firm.

Although Dubai has tried to make the process of obtaining and renewing a trade license, new entrepreneurs may find it hard to complete these processes in Dubai. Contact Business Consultant if you have any questions regarding how to obtain or renew a trading license or about any professional services offered in Dubai.

How Business Consultant Makes the Process of Business License Renewal Hassle-Free?

Business Consultant facilitates business set up in Dubai. The organization guides clients and plays a supportive role in granting and renewing Business licenses. It is well known that to renew a business license in Dubai, one needs to ensure proper documentation and submission with the relevant authorities in time.

The Department of Economic Development (DED) in Dubai handles the trade license renewal, and they issue the license renewal form. They also ask the applicant to get the NOCs from relevant authorities and submit the details along with the application.

Under the existing rules in the UAE, copies of passports, ID Cards, notarized documents, and tenancy agreements must be submitted compulsorily. These activities require expertise, time management, and contacts with the appropriate channels to get the work done quickly and seamlessly. Careful attention is required when filling out the renewal forms, and ensuring all the documents are submitted well before the expiry date requires expert support and guidance, and here is where the role of Business Consultant becomes crucial.

The submission of renewal documents is not the only part. Regular follow-ups and staying informed during the renewal process are crucial for the client. Business Consultant ensure that all these activities are taken care of and the client concentrates on their core business activities.