It is a very simple thing to know that starting a business requires a proper license. The same goes for Dubai where an appropriate license of trade is required if you are willing to start a business. These licenses are not the same and different from each other based on your business activities. An annual trade license renewal is necessary if you want a smooth operation of your company. Your license needs to be renewed annually to abide by the rules.
Licenses need to be renewed on an annual basis and if an individual fail to do that he may end up facing issues like blacklisting, fines, and even termination of your business. Now the question arises how to renew the trade license in Dubai? For that, some documents are required which will be mentioned below.
What is a License
A license is a written document that provides legal permission to carry out their activities and not do any trade that is not permitted in the license. License also does not provide you the ownership of the property you are using for your business
If you want to ensure a continuous operation of your company, you must be properly informed about all of these things. The Department of Economic Development Dubai is responsible for all of these activities.
How to Renew Trade License in Dubai?
If you want to renew your trade license you need to fulfill the following requirements and documentation:
Ejari Registration
If you want to renew your license it is compulsory to have an Ejari registration certificate this improves your tenancy contract.
Tenancy Contract
You must have a tenancy contract that has a validity of at least one month or more than one month. You must check your tenancy contract before you start applying. This contract should also be approved by the Ejari. If your tenancy contract is not valid up to at least one month your license renewal request will be rejected as per rules.
Copy of Old Trade License
You cannot apply for license renewal if you don’t have an old trade license. It is a mandatory document when you are applying for the renewal of your trade license. It is an important and mandatory document that allows you to carry out Business in Dubai.
Photocopy of Passport
A photocopy of your passport is also required for the process of renewing your License. If you also have partners, then copies of their passports are also required.
BR/1 Form
A BR/1 form is a license renewal form that must be filled and submitted to start the license renewal process. The form must be completed and signed by all of your business partners if any otherwise sign it solely and attach all the documents to it before submitting it to the Department of Economic Development (DED).
Step-by-Step Guide on How to Renew Your Trade License
Following are the steps for renewing your trade license;
Tenancy Contract
Ensure that your tenancy contract is valid for at least one month before you start the new renewal process. Any invalid license will be non-renewable.
Application to Department of Economic Development (DED)
Fill out your BR/1 form, sign it, and attach all the required documents with it, after that submit it to the Department of Economic Development (DED). The office will do all their necessary work and will get back to you after a few days.
Receive Payment Voucher
After your application has been verified for the trade license The Department of Economic Development (DED) sends you a payment voucher so you can pay the renewal fees.
Make a Payment
Now all you need to do is make the payment as soon as you receive the voucher to complete the process of registration. As soon as you have made the payment your trade license is as good as new. The Department of Economic Development (DED) only issues renewals after they have received the payment.
How to Renew Trade License in Dubai Online?
Now there is a very common question that how to renew a trade license in Dubai online? This can be done by visiting the website of the Department of Economic Development (DED). Just go to the website, and go to Business Dashboard, after that, you will see an option to Renew License click that. Enter your license number at the given place and follow the instructions.
How to Renew Trade License in Dubai by SMS?
The answer to the question of how to renew your trade license in Dubai by SMS is very simple. If you want to renew your trade license by SMS, then you have to send your license number to 6969. After you have sent your license number you will receive an SMS with a payment link. Tap on that link and you can pay your renewal fee online. When you have paid your fees online then you will be notified that your license has been renewed. A digital form of the license will be sent to your email address which will be linked with your license number.
Cost of Renewing Trade License in Dubai
The cost of renewing a trade license in Dubai varies and depends on multiple factors. These factors also include the economic zone where the business is established. The trade license renewal fees in Dubai are between AED 8000 to AED 15,000. These are not exact but round figures and they can vary based on the type of your business activities and other specific requirements.
To get an exact or accurate price that meets your individual needs and requirements it is always recommended to consult an expert who can provide you with their guidance and assistance.
Penalties If You Fail to Renew Your Trade License in Dubai
If you want to ensure smooth business functioning in Dubai, then having a valid trade license is essential. Renewing a trade license in time saves a company from getting blacklisted or banned. That is why it is important to check your trade license and tenancy contract. If you fail to renew the license before it expires it can lead to legal consequences. Some of them include:
Fines
The Department of Economic Development (DED) has all the rights to impose a fine on businesses that have not renewed their trade license. A fine of AED 5000 is imposed on the business that is operating without a trade license. In addition to that, a penalty of AED 250 is imposed on traders who trade after the expiry of their trading license.
Blacklisting
A company that is working or operating without a proper trade license or an expired trade license drags its business to a risk of being blacklisted. This will force them to terminate their operations throughout the country.
Prohibition of Business Expansion
Without a proper trade license, a company cannot expand itself or engage in any new business activities. This act will surely damage any kind of future expansion plans of the company.
Conclusion
After reading all of the above you will have come to know how to renew trade license in Dubai. It is advised to get an opinion from an expert if you are new to ensure that everything is in proper order. If you want to Run a Business in Dubai it is very important to have a valid trade license. The license renewal process is very simple which leaves no excuse for delaying your trade license renewal.
