What is trade license renewal Dubai
The UAE, just like any country, requires businesses to have a valid business license for it to operate. It is compulsory in Dubai that any company or firm gets a trade license before operating the business. If you conduct business with no trade license you might pay a hefty fine or even get deported. You can also be fined if you are operating on an expired trade license. So, after 2 or 3 years of successfully running your business in Dubai or the free zones, what should you do to have your trade license renewal dubai? What documents do you need to submit? Will you have to undergo the same process when you first applied for a business license or there will just be minimal documents you need o submit?
To answer these questions about trade license renewal dubai, read further.
Annual trade license renewal is required in Dubai. The DED or the Department of Economic Development in Dubai is the one in charge of processing your license renewal. The renewal is quite simple but you might need to submit a lot of documents.
A trade license in Dubai allows you to conduct business in Dubai. The business registered in the DED database indicates the business activity you are allowed to conduct. You cannot conduct a business that is not covered by your trade license. For example, if you are into real estate but conduct business for tourism, you can be charged a hefty fine or business closure.
Do take note that the license does not give ownership of property on which the business is trading. The license is a document that shows that your business is legal.
What Paperwork do You need to submit?
Trade licenses in Dubai are valid for only a year and must be renewed if you wish to continue to operate your business. You should start applying for renewal at least 30 days before expiry. In case you fail to do so but still wish to operate a business, you will have to pay a late fee of AED 200 per month. The 50 free zones will require unique documents for the renewal process. Here is a list you need to go over:
- Ejari Registration – Make sure you have a registration certificate from Ejari to renew your license.
- Valid Tenancy Contract – The validity of the tenancy contract should be at least a month. This contract should also be confirmed by Ejari. If the contract is less than one month, the trade license will automatically be rejected.
- Photocopy of old trade license – This is proof of your business operation.
- BR/1 Form – All documents much be attached to this form when applying for trade license renewal.
- Photocopy of Business Partner’s passports – each business partner should submit a photocopy of their passports. If you do not have any business partners, your passport copy will do.
The renewal application can be done online or offline.
Step by Step Process of Trade License Renewal
- Check tenancy Contract
- File application to the DED
- Receive payment voucher
- Make payment
Make sure you renew your license yearly to avoid penalties. A valid business license is not just a boost on the credibility of your business but also a sign that your business is a success.
Our Business Setup Experts can get your process done remotely and guide you better on documents and other procedures. Get in Touch today here and get your license renewed within 24 hours.