There are a few things I would like to emphasize before I explain the process of trade license renewal. Let’s explore some basic facts about trade license renewal.

Trade license renewal in Dubai is an important formality like acquiring a new trade license. The license-holder should conduct the renewal of the trade license before the specified time period. Any lapse in the renewal may attract financial penalties or even adversely affect the operations as a whole. 

How to renew the trade license in Dubai? 

A majority of people in Dubai do not know how to go about the trade license renewal procedures. With this article, hopefully, people can gain some insight into the trade license renewal formalities. If you would like any further clarifications about the renewal process, feel free to contact Kiltons Business Advisors at the earliest. Kiltons helps investors and businesses in all matters related to business setup in Dubai and UAE. We are specialists in both acquiring and renewal of business trade licenses. 

Different Types of Trade Licenses Issued in Dubai

Acquiring a valid trade license is one of the basic prerequisites for doing business in Dubai or the UAE. A valid trade license in Dubai enables an entrepreneur to legally perform a business activity or a group of activities specified in the license. Indulging in any sort of activity without a valid trade license is considered “illegal” in the UAE.  There are mainly three types of trade licenses issued in Dubai. And they are listed below.

1. Commercial License (issued in connection with trading)
2. Professional License (service-oriented activities)
3. Industrial License (issued in connection with industrial activities or production)

The Department of Economic Development (DED) – The government authority is in charge of issuing trade licenses in Dubai. The DED in Dubai issued around 15,000 business licenses from January to the middle of 2019. A significant majority of the new trade licenses were professional licenses. To gain more insight into the different types of licenses issued in Dubai, click here.

Instructions to Renewing the Trade License in Dubai

• Ensure the validity of the Tenancy agreement

Your tenancy agreement should have a minimum validity of 3 months to apply for license renewal. You are not allowed to apply for license renewal if the tenancy agreement has already exceeded this minimum validity period. The Tenancy agreement also requires EJARI attestation. Therefore, it is not advisable to postpone the renewal procedures until the very last moment. 

• Attaining the approval

Before filing the license renewal application, you are supposed to obtain the necessary approvals from all the concerned authorities. Let us consider the license renewal of a restaurant in Dubai. Before renewal, a restaurant needs to seek approval from the Food Safety Department and various other government agencies.

Documents necessary for the renewal of business license in Dubai 

There are certain documents required for license renewal and they are listed below. 

1. Certificate of Ejari Registration
2. Tenancy agreement
3. BR/1 form (typed)
4. Business partner’s passport. (copy)
5. Existing trade license (copy)

• Apply for license renewal

Apply for license renewal at the Department of Economic Development in Dubai. Hand over the Tenancy agreement, Ejari attestation, business partner’s passport, duly filled application form and all other supporting documents to DED. 

• Accept the payment voucher

After verifying the license renewal application and all other submitted documents, DED issues a payment voucher. Accept the payment voucher. 

• License renewal payment

Make the payment connected with trade license renewal with the help of the payment voucher. The DED issues the renewed license after the payment is successful. You may make use of other platforms for trade license renewal, like registered service centers or mobile apps.

What if the trade license is not renewed on time?

The failure to renew the business trade license within the stipulated time can attract penalties and other complications that could affect the reputation of the company. The major scenarios are listed below. 

1. Imposing fines - the DED, Dubai has the authority to impose fines on those business establishments that operate devoid of trade license. A fine of AED 5000 could be imposed on such a scenario. A monetary penalty of AED 250/month is imposed on those businesses that fail to renew the license before the stipulated time.
2. Blacklisting - If a company fails to renew the business license and does the operations with the expired license may be put under the “blacklisted” category. This would lead to the termination of business operations.
3. Prohibition of business expansion – business ventures that operate without renewing the trade license hinders their future business expansion plans.

A business establishment in Dubai may accomplish the trade license renewal in 3 different ways. The first one is the offline process; the second method is pursuing the renewal via the online platform. And the third is the automatic renewal procedure. 

The documentation and the whole process of applying for the license renewal could be a tough task for an ordinary entrepreneur. As the process is strictly time-bound, it is necessary to accomplish the formalities well before the stipulated time. Therefore, it is always a good option to entrust the trade license renewal task to a professional and registered business setup agent. Get in touch with Kiltons Business Setup Services representatives regarding the issuance and to renew the trade license in Dubai. 

As someone rightly pointed out “Time is money”. 

You might also read, Steps to Get a General Trade License in Dubai