Every businessman who has a business in Dubai needs a business license to operate their business activities lawfully. Though obtaining a business license for the first time is a long and lengthy process, but the benefits you enjoy in the opportunist land of the UAE are amazing.
Though the advantages of a business license are lifetime but license itself does not come with lifetime validity. Rather, you have to renew a business license in Dubai every year before the expiry date approaches to avoid a heavy fine, penalty, or, God forbid, cancellation.
Here in this blog, we have talked about the license renewal process in Dubai including the documents required, approvals, business, and license renewal cost.
Difference between a trade license and a business license in Dubai
If you are one of those who are confused between the terms: a trade license in Dubai and a business license in Dubai, don’t be. Because both of these terminologies are the same but are used alternatively.
Some would say they want a trade license renewal in Dubai, and some would be asking for a business license renewal in Dubai. In short, both of these terms mean the same. Some even use company licenses as well.
How to renew a business license in Dubai?
Every legal entity in the United Arab Emirates has to renew its business license annually. There are two ways to renew the business license in Dubai: offline and online. If you prefer to follow the offline procedure, then get in touch with the Department of Economic Development (DED) in Dubai as that authority is responsible to renew a trade license.
Here are the steps to follow for the Department of Economic Development – DED license renewal:
1: Tenancy contract
Before the business license renewal, you have to make sure that the tenancy contract of your rental premises is valid and is not going to expire during the time of renewal.
2: License renewal application
Now for company license renewal, you may need a license renewal application at the DED along with all the required documents and permission.
3: The required documentation
- BR/1 form: The BR/1 form is a license renewal permit form that you need to submit by getting it signed by all the shareholders.
- Copy of the tenancy contract and Ejari registration certificate: the Ejari certificate ensures that there is complete transparency between the landlord and tenant.
- Copy of the current business license: the current business license must have a validity of one month when you apply for renewal.
- Passport copies of all the business partners or investors
4: License renewal fee
With a validity of at least one year, the company trade license must be renewed at least one month before the validity time expires.
When you submit the license renewal application along with all the documents at the Dubai DED ministry. After reviewing and approving your application, the DED will allot a payment voucher that you can submit via mobile.
After making the payment, receive your renewed license in Dubai in 3 to 4 business days.
Moreover, in case you are still confused and want a little more guidance regarding how to acquire or renew your business license in Dubai, get in touch with us at Vigor company formation. We provide authorized services to help entrepreneurs like you with the process of license renewal and paperwork.
Why is it important to renew your business license in Dubai?
It is crucial to renew the business license in Dubai before its expiration date every year or else it can get canceled and you might have to do all the hard work of applying for a new business license in Dubai again.
If you don’t renew your trade license in Dubai, you might face the following problems:
- The Dubai economic development department will fine your company each month after crossing the expiry date. The fine will be AED 200.
- The bank has the right to suspend your corporate bank account. And in that situation, you wouldn’t be able to access or make any transactions through your bank account.
- If your business license is a trading business license, Dubai customs will adjourn the customized custom code of your company. This act will automatically cease all your import/export business activities.
What is the cost to renew a business license in Dubai?
The cost to renew your business license in Dubai depends on the factors like what are the business activities of your license, how many employees are working in your company, and what annual rent you are paying for your tenancy contract.
- If you have a professional business license, the renewal fee would be around AED 8000.
- If your business license is a commercial business license, then the renewal budget would be around AED 12,000.
- With an industrial business license, the renewal process can charge you between AED 12,00 to AED 15,000.
Our expert team at Vigor company setup can assist you with the business license renewal in Dubai, and UAE.
Renew a Business license in Dubai
Having an expired trade license can cause harm to your business. You need to renew it before its expiry time to ensure your business is in compliance with all the UAE’s business legislatures. And getting your business license renewed on time not only saves a lot of your time but also eliminates all the scary possibilities of getting your company banned or blacklisted by UAE government authorities.
So, monitor your tenancy contract and business license validity duration. The process of business license renewal in Dubai is easy and half-less time-consuming compared to applying for it for the first time. You can also take our professional business setup consultants’ expert guidance to ensure the renewal process is going in the right direction.