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How to renew a business license in Dubai

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To start a business in Dubai, trade license is a most important requirement. . The licenses are the legal document that allows companies to engage in the activities specified within the company documentation in the UAE and in accordance with the regulatory requirements.

Any business trade license should be renewed annually. Getting a business license renewed involves a lot of documents processed. Every UAE company must complete the renewal process in time to ensure that the business runs smoothly with a clean record.

Renewing a business trade license could be a long process if you are not familiar with it. The renewal process involves submission of legal documents and payment of an annual fee to the Department of Economic Development (in case of Dubai mainland LLC (Limited Liability company) firms) or the respective Free Zone Authority (in the case of free zone companies), which approves a new tenure for companies in Dubai.

Trade license can be renewed through Authorized Service Centers or with the help of Business Licensing Service providers. Delay in filing a trade license renewal levies penalty, or worse, a ban to the business license, freezing all the business activities.

There are three kinds of licenses issued by the Department of Economic Development Dubai.

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How to renew a business license in Dubai

3 kind of business licenses issued by DED in Dubai are:

How to Renew Business License in Dubai?

The first thing one need to ensure is that the firm’s tenancy contract should have a validity of at least 1 month and it should be attested by Ejari.

If the tenancy contract does not have a validity of at least a month, the associated license cannot be applied for renewal. If your tenancy contract is valid until the next 3 months, you can draft your application for submission.

Companies must process the renewal of their tenancy contract prior to submitting their Commercial License renewal application at the DED.

Every business activity in dubai has selective requirements and could ask for certifications or licenses from specific authorities. you need to get requisite approval from the business activity from the required judicial or government department before applying for the renewal of the business license.

Second, submitting an application with all required documents list of all the documents required for the purpose of trade license renewal:

 

Submit documents to renew business in Dubai

You can then submit your application to DED in various ways:

Offline Renewal: DED can renew your business license by offline modes like business service provider, law firms, authorised service agents, happiness lounge, etc.

Online Renewal: DED’s website and e-Services especially for the business customers on which they can do the renewal online. Getting the renewal done online saves time and effort and requires minimal paperwork

Once the documents have been submitted, the Department of Economic Development will provide a payment voucher or transaction number. The payment voucher must be kept safe until the license has been renewed.

Once you receive the voucher, Use the payment voucher as reference to pay the business license renewal fees through your nearest authorized serviced center.Immediately after making the payment you will receive your renewed license from the channel.

Delaying the payment may affect badly on your business. A business practicing without a license could be penalized with AED 5000.

While failure to renew a license within the specified time-limit could cost AED 250 per month, also an additional office for an existing license without permission fines the entity with AED 2000 and continuation of business without trade license renewal can lead to the company being blacklisted by the respective authority.

In such case, the company must seize all transactions and the visas and sponsors listed under the company name can be made null & void.

The companies with expired license are not allowed to expand under these circumstances. It is essential for the companies to have a clean record if there are plans for expansion.

keep your license valid or your business will inevitably suffer and you could be at risk of losing everything.

CONCLUSION

Every Business License in UAE needs to be renewed every year, in order to renew your business license in Dubai you will be required to provide Ejari in other words its office lease agreement but recent Dubai Govt changed the law and allowed old companies to renew their license through co working agreement issued by business centers in Dubai.

It is extremely crucial to meet the deadlines of renewing your license and to have your documents prepared or set and attend to your payments on time to the authority.

Failing to renew your license are not only limited to financial penalties but failing to renew your license can have many other displeasing consequences, some of which may end up in conclusion of your business activities.