A business setup in UAE involves securing a business license and it must be renewed annually to ensure smooth business operations. In Dubai, the Department of Economic Development (DED) oversees the renewal process, ensuring efficiency and timely completion.
So, it is important to familiarize yourself with the various types of trade licenses available in Dubai and the Steps for Trade License Renewal in Dubai before proceeding with the renewal process.
If you want to tackle the process by yourself, then here is a complete guide involving everything you need to know about the Dubai trade license renewal process.
What is a Trade License?
A Dubai Trade License is a document issued by the Department of Economic Development that authorizes a company to carry out specific activities within the UAE. This license is important for any entity involved in importing and exporting goods, as well as various commercial activities.
A trade license helps businesses for several reasons including :
- Legal authorization to conduct business operations
- Ability to engage in financial activities and manage bank accounts
- Access to a range of government-provided services and advantages
- Enhanced security through reduced exposure to judicial risks
However, keep in mind that the validity period of trade licenses in Dubai varies depending on the kind of business and activity being done.
The Documents Required for DED Trade License Renewal in Dubai
The documents required for reviewing the trade license are :
- Ejari Registration
To renew your trade license, ensure your tenancy contract is valid for at least one month. Also, confirm that Ejari has reviewed and approved your contract.
- Valid Tenancy Contract
To renew your trade license, your tenancy contract needs to be valid for at least one month. Ensure that Ejari has reviewed and approved your contract.
- Previous Trade License Copy
When applying for renewal, be sure to include a copy of your old trade license. This document is essential as it verifies your authorization to conduct business in the United Arab Emirates.
- BR/1 form
Complete the license renewal by filling out the BR/1 form. Each current partner must complete and sign the form. Be sure to attach all required documents before submitting them.
- Photocopies of Passports for Each Business Partner
Provide copies of the passports for all partners associated with your company. If you are the sole owner, include a copy of your own passport.
After getting these documents, you can send them to the Department of Economic Development ( DED ) with your renewal form. You have the option to complete the process either offline or online. However, No matter which application method you choose, the regulatory processes and evaluations will be managed by the relevant authorities in Dubai.
A Complete Guide to Renewing Your Trade License in Dubai 2024
These are the steps you need to follow your trade license in Dubai for 2024 recommended by our professionals at Damaar.
1. Review your lease
Make sure your lease is still valid for at least one more month before starting the renewal process. If your lease has expired, you might not be able to renew your trade license.
2. Send the DED your application
Complete the BR-1 form and gather all required documents. Send them to Dubai’s Department of Economic Development (DED)
3. Get the payment voucher
After your application is approved, the DED will give you a payment voucher.
4. Complete the payment
Follow the instructions on the payment voucher to pay the fees. Once the payment is processed, your trade license will be renewed.
5. Mobile app option
Alternatively, you can renew your trade license through the DED mobile app.
Benefits of Trade License Renewal in Dubai
Following are some of the advantages of renewing a trade license in Dubai.
Compliance: Renewing your license shows you are committed to the DED rules. This will save your business from penalties and legal issues due to expired licenses.
Operations: A trade license is key to smooth operations. Renewal will ensure your business runs without interruptions that can affect productivity and revenue.
Reputation: Renewing your trade license will boost your business reputation and credibility, so clients, customers, and partners know you are legitimate and follow the rules.
Services: Banking, property leasing, and contract signing among others require a trade license. Renewal will give you access to these services.
The Grace Period for Trade License Renewal
Dubai mainland businesses have a 30-day grace period to renew their trading licenses. If you don’t renew within this period, you may face fines. So, be sure to complete your renewal within the grace period to avoid any penalties.
The cost of renewing a trade license in the UAE
The cost of renewing a DED trade license in Dubai varies depending on factors such as the jurisdiction and economic zone. Typically, renewal fees range from AED 8,000 to AED 13,000. Keep in mind that these figures are approximate and may vary depending on your specific business needs and activities. For accurate pricing tailored to your situation, consult with the experts at Damaar Business Setup Consultancy.
Penalty for Failure to Renew the Trade License in Dubai
Penalties: You’ll slapped with fines for each month you delay renewing your license after it expires. If you continue operating after the license has expired, you’ll also be fined for that.
Blacklisting: If you keep operating without renewing your license, your company could be blacklisted.
Business Expansion Restrictions: You won’t be allowed to expand your business or start new ventures until you renew your trade license. This will hinder any plans you have for growing your business.
Renew your trade license with Damaar
Renew your business license effortlessly with Damaar, the top business setup consultancy in the UAE. Our expert team ensures a smooth and timely renewal process, handling all paperwork and compliance including a General Trading License in Dubai for you. Trust Damaar to keep your business running smoothly and in good standing. Connect with us for hassle-free license renewal and focus on what you do best—growing your business.