The Proceeding of Dubai Trade License Renewal

A trade license is essential for operating businesses in the UAE or Free Zone, and the delay in its renewal will lead to penalties and serious legal consequences. This article will tackle the rules and requirements of Dubai trade license renewal to set and operate your business legally.

Trade License in the UAE

A trade license is a legal document issued by an official authority after ensuring that its holder satisfies all the country’s rules and regulations for opening a new business and allows him/her to operate a business in the country.

The UAE authorities give UAE trade licenses to the companies that operate businesses on its mainland. In addition, the Dubai trade license is important for companies during financial transactions and international trade negotiations, as it is considered legal evidence of a company’s existence and a tool for building trust and credibility. 

Thus, every company has to obtain a UAE trade license and renew it on time to get benefits from UAE government assets and to protect its business from penalties and judicial threats. 

Trade License Renewal Dubai Requirements

To start a successful Dubai trade license renewal process, you have to prepare the required documents, as it is determined by the Department of Economic Development (DED).

• Dubai trade license renewal application

You have to fill out the application for a trade license renewal, complete the necessary information required, and sign it to complete the process of renewal.

• Ejari Certificate

Ejari is a new initiative under the Real Estate Regulatory Authority in the UAE and provides registration certificates to verify the authenticity of tenancy contracts. Therefore, you have to submit a valid Ejari certificate to complete the process.

• Valid Tenancy Contract

The tenancy contract is one of the required documents to renew your trade license, so you have to submit a valid one to avoid procedure rejection or delay.

• Copy of Present Trade License 

The business owner has to submit a copy of the current trade license along with other documents to prove that you met the regulations to open and operate a business in the UAE.

• Copy of Identification Documents

The business owner has to provide a copy of his passport, UAE residency visa, and Emirates ID. 

Steps of Dubai Trade License Renewal

We will explain the process of Dubai trade license renewal online in detail as follows:

1. Log in to the e-services portal provided by the Department of Economic Development (DED) with your business information. 
2. Choose from options: trade license renewal
3. Fill out the necessary information required about your trade license, such as trade name, license number, expiry date, and estimated expiry date after renewal.
4. Upload the attached documents that are required for the renewal process, then click apply.
5. By clicking apply, DED will receive your application and documents for reviewing it.
6. After the system approves that your application and documents are completed, you will receive a payment letter to pay renewal fees.

How much is trade license renewal in Dubai?

The cost of trade license renewal varies according to the type of business structure, the business activity, jurisdiction and economic zone, and additional charges for late renewal. The range of Dubai trade license renewal fees is between AED 8,000 and AED 15,000.

To avoid costly charges and penalties, consult the experts of business setup services at Alsun Bookkeeping and Taxation. We have the experience and knowledge to provide the proper consultants regarding your business operation, financial transactions, and tax procedures. 

Penalties for failing to renew your trade license

There are serious consequences for your business if you fail to renew your trade license on time: 

• The authorities will impose serious fines on the businesses operating with expired trade licenses.
• Companies will be prohibited from engaging in certain commercial activities.
• The Department of Economic Development will blacklist the businesses that are operated despite their trade license expiring and the fines imposed, which lead to legal consequences affecting the business status in the UAE.
• The authorities may close the expansion of the business and prevent launching any new campaigns until renewing the license.
• The failure of trade license renewal may cause freezing of financial transactions and visa renewal processes.

Conclusion

The process of Dubai trade license renewal is an essential requirement for your business’s operation in the UAE, as it makes your business comply with the laws and regulations of the country. In addition to that, the trade license renewal on time avoids fines, blacklisting, and serious legal and financial consequences that may affect your business badly. 

At Alsun Bookkeeping and Taxation, we provide professional services for all business setup requirements, including trade license renewal. Our expert agents assist you in preparing the required documents and submit them on time to complete the process successfully.

Contact us now for any financial or taxation consultancy!

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