Every business owner in Dubai needs a business license in order to legally conduct their operations. Even if getting your first company license takes a lot of time and effort, the advantages you get in the UAE, an opportunistic country, are incredible.
Despite the fact that a company license’s benefits last a lifetime, the license itself does not. Instead, in order to avoid paying a hefty charge, receiving a penalty, or, God forbid, having your business license revoked, you must renew it every year before the expiration date.
We have discussed the license renewal procedure in Dubai in this blog, including the paperwork needed, the approvals needed, the company requirements, and the cost of the license renewal. There is a distinction between a commerce license and a business license
Do not be one of those people who cannot distinguish between the terms “Dubai trade licence” and “Dubai business license.” because despite being interchangeable, both of these terms are the same.
Some would claim to want a Dubai trade license renewal, while others might ask for a Dubai business license renewal. In a nutshell, these two expressions have the same meaning. Some people even use business licenses.
How may a business license in Dubai be renewed?
Every year, every legally recognized entity in the United Arab Emirates must renew its business license. In Dubai, there are two options for renewing a company license: offline and online. Contact the Department of Economic Development (DED) in Dubai if you would rather follow the offline process. This organization is in charge of renewing trade licenses.
The following procedures must be followed in order to renew your Department of Economic Development (DED) license:
1: Lease agreement
You must confirm that the lease for your rental property is current and won’t expire at the time of renewal before applying to renew your business license.
2: A request to renew a license
In order to renew your business license, you may need to submit a license renewal application to the DED together with all the necessary documentation and authorization.
3: The necessary paperwork
Form BR/1: You must the BR/1 form for a license renewal permit, signed by all the shareholders. A copy of the lease agreement must be provided, as well as the Ejari registration certificate, which guarantees complete openness between the landlord and tenant. A copy of the current business license is required when you apply for a renewal; the current license must be valid for at least one month along with copies of each investor’s or partner’s passports.
4: Fee for license renewal
The company trade license must be renewed at least a month before its minimum one-year validity period ends. When you submit your application for a license renewal and the required paperwork to the Dubai DED ministry. Your application will be reviewed and approved by the DED, which will then give you a payment voucher that you can deposit by mobile. Once you’ve paid, you’ll get your renewed business license within a matter of 3-4 business days.
In Dubai, why is it crucial to renew your company license?
Before the license expires each year, you must renew it; otherwise, it will be cancelled, and you will have to go through the laborious process of applying for a new license in Dubai.
The following issues could arise if your trade license in Dubai is not renewed:
After the expiration date has passed, the Dubai Economic Development Department will fine your business every month. The penalty is AED 200.
Your business bank account may be suspended by the bank at any time. And in that case, you wouldn’t be able to access your bank account or carry out any transactions through it.
If your company has a trading business license, Dubai customs will suspend your company’s personalized custom code. Your import/export business operations will automatically end as a result of this action.
What does it cost in Dubai to renew a company license?
The price to renew your business license in Dubai is determined by elements such the business activities covered by your license, the number of employees, and the annual rent of your tenancy contract.
The renewal charge for a professional business license would be close to 8000 AED.
The cost of renewing a commercial business license would be about AED 12,000 in this case.
The cost of renewing an industrial company license can range from AED 12,000 to AED 15,000.
You can get help from our knowledgeable staff at Vigor Company Setup with renewing your business license in Dubai and the UAE.
Renew your business license in Dubai.
An expired trade license might be detrimental to your company. To make sure your company complies with all applicable UAE business laws, you must renew it before the expiration date. Additionally, timely renewal of your company license not only saves you a great deal of time but also eliminates all the scary possibilities of getting your company banned or blacklisted by UAE government authorities.
Therefore, keep an eye on the length of your lease and business license’s validity. Compared to applying for a business license for the first time, the renewal process in Dubai is simple and takes around half as long. To make sure the renewal process is moving in the right way, you may also rely on the expert advice of our professional business setup advisors.