In Dubai, trade license renewal is as vital as obtaining a new trade license. The licensee should renew his or her trade license before the expiration date. Any failure to renew may result in financial fines or could have a negative impact on the company’s operations as a whole.
A trade license is necessary for entrepreneurs and investors to run or setup business in Dubai. In Dubai, the Department of Economic Development (DED) is in charge of awarding trade licenses. The DED has issued several licenses to each firm, giving them prominence depending on their economic activity. A Dubai business or trade license establishes a regulatory framework for your firm and allows you to take advantage of a number of advantages. In Dubai, there are three primary categories of commercial licenses. They’re all mentioned below.
- Commercial licenses are required for both general and specialized trading operations.
- Professional licenses are granted to enterprises engaged in a variety of professions or service-oriented activities, such as artisans, physicians, teachers, and artists.
- Industrial licenses are issued to businesses that engage in industrial or manufacturing activities.
In Dubai, trade permits are issued by the Department of Economic Development (DED), a government agency. The granted Trade License is only valid for one year and must be renewed each year.
Guidelines for trade license renewal in Dubai
- Verify the tenancy agreement’s legality
To apply for license renewal, your lease agreement must be current for at least three months. If the lease agreement has already beyond this minimum validity time, you will not be able to request for license renewal. EJARI attestation is also required under the tenancy agreement. As a result, deferring renewal processes until the very last minute is not recommended.
- Obtaining the Approval
You must obtain all necessary approvals from all relevant authorities before filing the license renewal application. Analyze a hotel’s license renewal in Dubai. Before renewing its license, a restaurant must get permission from the Food Safety Department and other regulatory bodies.
The following are the documents required to renew a trade license in Dubai.
- Ejari registration certificate
- Valid tenancy contract
- Copy of old trade license
- BR/1 Form
- Hard copies of all key stakeholders’ passports
Request a renewal of your license
In Dubai, go to the Department of Economic Development to renew your license. The lease agreement, Ejari attestation, business partner’s passport, fully filled application form, and any other supporting documents will all be received by DED.
Accept the voucher for payment
After verifying the license renewal application and any other supporting paperwork, DED sends a payment voucher. Accept money in the form of a coupon.
Payment for renewal of a license
With the aid of the payment voucher, make the payment for the trade license renewal. After the money is received, the DED issues the renewal license.
What happens if the trade license isn’t renewed in a timely manner?
Failure to renew a business trade license within the specified period might result in penalties and other problems, which could harm the company’s reputation. Below is a list of the key situations.
Imposing penalties – The Dubai Department of Economic Development (DED) has the ability to impose fines on businesses that operate without a trade license. In such a case, a fine of AED 5000 may be levied. Businesses that fail to renew their license before the deadline face a monetary penalty of AED 250 each month.
Blacklisting – A firm may be placed on the “blacklist” if it fails to renew its business license and continues to operate with an expired license.
Business expansion is prohibited – if a company endeavor operates without renewing its trade license, then future business expansion ambitions are under risk.
The application for a trade license renewal must be submitted within 30 days of the expiration date. It’s important to remember that if you don’t renew your license before it expires, you might face stiff penalties, or your firm could be banned or blacklisted.
Imposing penalties – The Dubai Department of Economic Development (DED) has the ability to impose fines on businesses that operate without a trade license. In such a case, a fine of AED 5000 may be levied. Businesses that fail to renew their license before the deadline face a monetary penalty of AED 250 each month.
Blacklisting – A firm may be placed on the “blacklist” if it fails to renew its business license and continues to operate with an expired license.
Business expansion is prohibited – if a company endeavor operates without renewing its trade license, then future business expansion ambitions are under risk.
The application for a trade license renewal must be submitted within 30 days of the expiration date. It’s important to remember that if you don’t renew your license before it expires, you might face stiff penalties, or your firm could be banned or blacklisted.
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