3 kind of business licenses issued by DED in Dubai are:
- The commercial license
- The industrial license
- Professional license
How to Renew Business License in Dubai?
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Tenancy Contract Validity
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.
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Approvals for Business Activities
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:
- A typed BR/1 form
- Ejari Registration Certificate and a photocopy of Tenancy Contract
- Photocopy of the current business trade license
- Passport photocopies of all the business partners
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
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Transaction Number or Payment Voucher
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.
