Dubai is often seen as a haven for business, drawing entrepreneurs eager to establish their ventures. However, for your business setup to function smoothly over time, you must undergo trade license renewal in Dubai. There are several crucial aspects to be aware of, with an annual renewal being a mandatory requirement. It’s essential to be diligent about the renewal date and the associated procedures.
Moreover, possessing a business license is pivotal for running a business setup in Dubai. Neglecting to maintain this key document can result in hefty fines or even the suspension of your business setup. As an entrepreneur, prioritizing adherence to legal regulations should always be a primary consideration.
Understanding the intricacies of license renewal is a common challenge. The Department of Economic Development is the authoritative body overseeing trade license renewal in Dubai. This blog aims to provide a comprehensive understanding of the procedures, empowering you to easily manage the process and uphold the legal requirements necessary for the smooth operation of your business setup.
Why trade license renewal in Dubai is important?
According to UAE business laws, the failure to renew your license is not a smart move for your business setup. Furthermore, a valid license is a key that allows you to maintain the validity of your entrepreneurship, and failure to renew it can have significant consequences.
Penalties and Fines
The Dubai Department of Economic Development (DED) is vested with the authority to impose financial penalties on businesses that neglect to renew their trade licenses. Institutions operating without a valid trade license may be subject to a penalty of AED 5,000. Moreover, traders continuing business activities after the expiration of their trading license may face a monthly penalty of AED 250.
In the event of failing to renew your trade license in Dubai, the next step taken by the authority is to ban your business setup from operating in the country. Initially, your company will be moved to the ‘blacklist,’ and subsequently, operations will come to a complete halt.
Banning the Company
The final step, following blacklisting, is the banning of the company. If you fail to renew your trade license in Dubai even after receiving further warnings, your business setup will be forcibly shut down. After this serious consequence, it becomes entirely impossible to re-establish the business setup.
Necessary documents needed for trade license renewal
When renewing a trade license in Dubai, it is imperative to submit several important forms to the Department of Economic Development. These include:
2) Ejari Documentation:
- A certification from Ejari is essential for trade license renewal, confirming the tenancy of your contract.
- Ejari is an online form initiated by the Real Estate Regulatory Agency (RERA), validating your contract with the landlord and encompassing all rental agreements. Failure to provide Ejari documentation may result in fines.
2) Copy of the Original Trade License:
- When applying for trade license renewal in Dubai, you must present the old trade license, a key document verifying your business setup in Dubai, UAE.
3) BR/1 Form:
- The BR/1 form, also known as the license renewal form, must be filled out and submitted to the Department of Economic Development (DED) for further processing.
- This form should be signed by all existing partners, and all necessary documents should accompany the BR/1 form.
4) Valid Tenancy Contract:
- A tenancy contract eligible for license renewal should have a validity of at least one month and must be an approved document by Ejari.
- Failure to meet the one-month validity requirement for the tenancy contract increases the likelihood of license renewal disapproval.
5) Passport Copies of Business Partners:
- Submission of valid passport copies of all business partners to the DED is crucial. If others are unavailable, you may submit your passport copy.
Once all necessary documents are gathered, submit them to the Department of Economic Development, the authority for trade license renewal in Dubai. You have the option to choose between online and offline renewal processes based on your convenience. The regulatory system and documentation requirements remain consistent for both methods.
Upon submitting the BR/1 form and required documents to the DED, they will verify the validity of the submissions. Once cleared, a payment voucher will be issued, and completing the payment will finalize the trade license renewal in Dubai.
Contact Marqueway business setup consultants in Dubai
This blog is intended to serve as a comprehensive guide, providing you with all the necessary information on trade license renewal in Dubai. At Marqueway, it is our pride to furnish you with all the facts and insights concerning the entire procedures involved in starting a business setup.
If you have any doubts or queries after perusing this blog, feel free to reach out to us. With a stellar track record of assisting numerous entrepreneurs, we are well-informed to provide you with the guidance you need. For a seamless and well-organized trade license process, it is always recommended to engage the services of a business setup consultant . Marqueway can manage all aspects of the process and documentation, ensuring your trade license renewal is completed on time. Contact us to learn more about our business setup services.