Are you wondering how to renew trade license in Dubai? The guide is for you in which we discuss how and why you should renew your business license in Dubai and more.
Once you’ve put all the hard work to get your business setup in Dubai, the last thing you don't want to happen is to lose it, that may happen for not renewing a business license in Dubai!
Let’s get straight to the point – if you’re running a business in Dubai you renew your business license issued by the Department of Economic Development (DED), every year. If you don’t you may end up paying substantial penalties. You may also face other negative consequences, such as blacklisting of your company, or complications in expanding your business.
Fortunately, company license renewal in Dubai is pretty straightforward and can be done easily both online and in person. It can be easier still with the help of business setup consultants who know everything that needs to be done about company registration in Dubai and also how to renew a company license in Dubai.
Why you Must Renew A Business License in Dubai
The Department of Economic Development or DED and other regulatory authorities in Dubai mandate that all business in Dubai must renew their business licenses well before their expiration date. If you do not follow their mandate on business license renewal in Dubai here’s what can happen:
You’ll End up Paying Huge Amounts as Fines
You can be charged approximately two hundred dirhams for each month the fine remains outstanding. Not just that, if it is found that you are running a business with an expired license in Dubai you may end up shelling out five thousand dirhams!
Your Company May Be Blacklisted
Delay in renewing your business license in Dubai can also land you in hot water with the regulatory authorities and even end up with your company getting blacklisted, which is the severest punishment meted out by the authorities. Blacklisting can in turn lead to consequences such as:
- Your business’s transactional capabilities getting blocked
- Visas getting invalidated and travel bans being imposed
- Bank will suspend the corporate bank account
- Customs will block the shipment
Your Business May Be Barred From Expansion
If you delay your company license renewal in Dubai, your crucial business operations may be restricted, and your company may not be allowed to expand. It can spell doom for small businesses if they cannot scale up.
How To Renew A Business License in Dubai
The three important steps to renew a business license in Dubai are:
- Make sure you have a valid tenancy contract
This is the first step in renewing a company license in Dubai. You have to make sure that your business/company has a valid tenancy contract (validity be for a minimum of at 1 month at least). For the tenancy contract to be valid, it must be attested by Ejari. If your tenancy contract does not meet with these criteria, you cannot start your Dubai business license renewal process.
- Apply for company license renewal
Once you’ve made sure that your tenancy documentation is in order, you need to move to the next part of company license renewal - approval from concerned authorities, process renewal of business license. This can be done both online and in person. For this you need to apply for Dubai business license renewal at the Department of Economic Development (DED), and submit all the required documents. The list of all the documents you need to submit to the DED for the purpose of company license renewal includes:
- A typed BR/1 form
- A copy of your valid current tenancy contract
- A copy of EJARI Registration Certificate
- A copy of your current business trade license
- Copies of all the business partners’ passports
Please note that these documents are needed for both offline and online business license renewal in Dubai.
- Pay your license renewal fees
After submitting your application along with the necessary documents, the DED will provide you with a payment voucher. If the documentation you have submitted is all in order, you will receive your payment voucher within three or four working days. As soon as you receive the voucher, you need to initiate the payment procedure. As soon as you make the payment you will receive your renewed license from the DED.
Sounds rather simple, doesn’t it? After all the effort and financial investment, it took to undertake your business setup in Dubai and get it up and running, do you really want to run such a risk by letting your Dubai business license expire? All of this can be easily avoided merely by being cognizant of your license expiry date and getting it renewed before the deadline. You could task someone in your company with the responsibility of company license renewal, or you could work with reputed business setup consultants like Avyanco who have in-depth experience in such matters. Whatever option you decide to go with, it is imperative to ensure that your business license in Dubai remains valid or you could end up risk of losing everything.
How Much Does It Cost To Renew A Business License in Dubai?
The cost for business license renewal in Dubai ranges from AED 8 000 – AED 13 000; however, it may vary based on the type of business license and jurisdiction. Consulting with the best business setup advisors in Dubai will help you minimize the business license renewal costs and manage the process effectively.
How Avyanco Help Renew A Trade License in Dubai
Avyanco is one of the leading business setup consultants in Dubai. We offer both comprehensive and customized solutions for business setup in Dubai. This includes all aspects related to company registration in Dubai i.e., bookkeeping, tax compliance & advisory, audit - assurance & PRO Services. Our team of experts consists of business setup consultants, seasoned lawyers, PRO executives, offshore personnel, and operations staff who are well-versed with all the complex processes involved in company formation in Dubai as well as renewing business license in Dubai.
Contact Avyanco & allow our experts to helping you find a local with your company license renewal in Dubai. Call/WhatsApp: +971 50 3989000, (T): +971 4 240 5000, Email:email@example.com