Dubai's business-friendly environment has made it popular with thousands of international firms operating in the city. It’s no wonder businesses do well here, with a strategic location, advanced infrastructure and friendly investment policies. But, doing business legally in the emirate is contingent on keeping your trade license active and current.
Renew Trade License in Dubai Renewing your Dubai trade license is not just for legal reasons, it is also extremely important to ensure you do not face unwanted fines and that your operations are not halted. We make this process easy for you at Global Business Setup. In this comprehensive guide, you will learn all that pertains to trade license renewal in Dubai, including process, documents, timelines, penalties and how we can assist you.
What is Trade License Dubai?
Issued by the Department of Economy and Tourism (DET), the trading license is, and previously also known as the Department of Economic Development (DED), the official document that gives you the right to do business in Dubai. There are various types of trade licenses.
Trade License – for the commercial business operations
Vocation License – for businesses that provide services
Industrial License : For manufacturing and industrial activities
Need a trade license? And whether you are a startup or a large business, the trade license in the UAE is an essential document to continue business in the area.
Trade License Renewal Why is it Necessary?
Legal Compliance
Working with an expired license is against the law in UAE and can lead to fines or business operation suspension.
Avoid Fines and Blacklisting
If you fail to renew your license by this date, you could face daily fines that will increase with each passing day. Continuous delays could bring about blacklisting or a total ban on your company.
Maintain Business Operations
In many cases, banks, branches government agencies and customers require proof of a qualified license for transactions or cooperation. An expired license may stop your business in its tracks.
Visa Validity
Your company visas and labor card are tied to your trade license. If the license expires, you cannot issue new visas or reissue existing ones.
When is the Right Time to Renew Your Trade License?
Investor visa for Dubai is issued for a period of one year (and can be renewed for one year or two years in some jurisdictions). (It’s best to start the renewal process at least 30 days before the expiration date to sidestep any delays or fines.)
How to Renew Trade License in Dubai – Complete Step-by-Step Guide
Verify the Validity of the Tenancy Contract
Your office or commercial premise should have a valid Ejari tenancy agreement which must have at least 1 month of validity in time of renewal. If it has expired, renew the tenancy before doing anything else.
Prepare Required Documents
Here is what you typically need to submit:
Copy of current trade license
Lease Contract with Ejari (month to month)
Copies of all partners’ passports
Emirates copyright of the local sponsor (Note1), if any.
Memorandum of Association (if any)application
Note: the below requirements depend on type and location of the company (Mainland vs Free Zone).
Submit Renewal Application
For businesses on the mainland, this is how you apply:
Dubai Department of Economy and Tourism (DET) website
Dubai Economy mobile app
Authorized service centers
For free zone companies, the renewal needs to be filed through the respective free zone authority like DMCC, JAFZA, DAFZA, etc.
Make the Payment
After the application has been reviewed and approved, you will be issued a payment voucher. If all else fails, pay the appropriate renewal costs for your new license.
Receive the Renewed License
Renewed license is sent immediately or after 1-2 business days after the prompt payment.
Trade License Renewal for Various Jurisdictions
Mainland Dubai
In the mainland, trade license renewal is managed by the DET. It’s pretty easy, but it might require coordination with the local sponsor or service agent.
Free Zones
Every free zone in Dubai is managed by its own authority, with its own guidelines on the renewal of the license. Some notable examples:
DMCC: Online option available; documents for tenancy and compliance necessary.
JAFZA: Renewals are processed on the JAFZA e-portal.
Conclusion
Renewing trade license in Dubai is an important but simple process, if you do it right. Whether you are working in the mainland or setting up in a free zone, the best advice is to be proactive and have experienced people working on your case, and this will possibly save you a lot of time, money and stress.
We have assisted hundreds of businesses in the renewal process of their trade licenses at Global Business Setup. Contact us today and get a free consultation to ensure that your business is up to date and not at risk of closure in the UAE.