What Happens If You Failed to Renew Your Trade License in Dubai, UAE?

Business owners in the UAE must renew their trade licenses annually. It is imperative that you renew your license before the deadline, that you have all your paperwork ready, and that you pay the authorities on time. Failure to renew your license may result in unwanted forfeits, which are not only monetary fines. Numerous more undesirable outcomes, some of which may result in the closure of your organization, might arise from not renewing your license.

When it’s time to renew your trade license in Dubai, we’ll make sure you’re reminded. Global Link will deal with the necessary regulatory authorities for trade license renewals and make sure that your company always has a license to engage in the particular commercial activities you have chosen.

If you are unfamiliar with trade license renewal or Dubai trade license in general, it might be a stretched procedure. Dubai trade license renewal calls for certain paperwork processing. Depending on the zone you are applying from, there may be differences in the paperwork, trade license costs, and processing times. One’s questions and concerns may increase after reading this.

In Dubai, there are several firms that specialize in business formation and trade license renewal. So, hiring a professional would be one of the most effective and dependable ways to start your rejuvenation. Contacting Global Link is always a good idea if you are unsure about who to believe.

It’s strongly advised that you enlist the aid of experts if you’re unfamiliar with the renewal process because making costly errors is easy. In Dubai, here’s how to get a new trade license:

• Verify the legality of your lease before signing it.
• Obtain the required approvals.
• Request a trade license renewal.
• Provide the required documents
• Complete the payment for license renewal.
• Verify the legality of your lease before signing it.

Before you can apply for the trade license renewal in Dubai, your tenancy agreement must have expired for at least three months. You will have to renew your tenancy agreement and get your EJARI attested before you can apply for the trade license renewal if your tenancy agreement does not have a minimum of three months of validity left.

Obtain the required approvals

You may need to get a number of permissions prior to applying for the trade license renewal, depending on the sort of business you are operating and the commercial activity you are engaging in.

For instance, you would want permission from the Planning Section and the Health & Safety Division of the Dubai Municipality if you were operating a beauty salon in Dubai.

Request a trade license renewal

You may then begin the license renewal process after you have received all necessary permits and ensured the legality of your tenancy agreement. The Department of Economic Development in Dubai will need to renew your trade license. During the license renewal process, you’ll need to complete a form that they’ll provide.

Provide the required documents

You must submit the completed DED application form together with the necessary supporting documentation. The following list contains the documentation you will need to provide to the DED in order to renew your license:

• Rent agreement that is valid for at least three months.
• the EJARI registration certificate.
• a BR/1 form that has been typed.
• copies of each business partner’s passports
• Copy of the current trade license.

Complete the payment for license renewal

The DED will provide you with a payment voucher after all of your paperwork has been submitted. The payment associated with the payment voucher must be finished. After you make the payment, the renewal of your Dubai trade license is complete.

Renewal of a Mainland Company’s Trade License

It may seem simple to renew a trade license for a mainland company, but when permissions from many governmental offices in addition to DED are required, things can get tricky (Department of Economic Development). Typically, the following paperwork is necessary:

• Existing License Copy
• Tenancy Agreement and Ejari Certificate
• Various paperwork is needed for clearances from external departments depending on your activity.
• Normal renewal times for trade licenses are between one and two working days. The procedure might take seven working days if extra outside clearances are needed.

The Possible Penalties of Not Renewing your Business License

One of the most crucial elements of running a business in the UAE is having a trade license. It is the only document that enables you to conduct business in the United Arab Emirates. As a result, you risk facing harsh penalties, including the liquidation of your company, if you don’t renew your trade license before it expires.

The following are some consequences of failing to renew your trade license on time:

Fines: You may incur a variety of fines for failing to renew your trade license on time. The company must pay AED 250 for each month that its trade license is not renewed after it expires. The company will be fined AED 5000 if it conducts commercial operations after the trade license expiration date.

Blacklisting: The firm will be blacklisted if it carries on with its operations despite being fined and does not renew its trade license. If a company’s trade license is not renewed after spending some time on the blacklist, its commercial operations will be suspended.

Business development is not allowed: A business cannot expand or try to start any new commercial activity without renewing the trade license. Any future company development ambitions they may have had will be hampered by this.

Are Trade License Renewals Subject to a Grace Period?

After your trade license expires, you have 30 days of grace during which you can continue operating your business without being penalized. However, this 30-day grace period is provided so you have time to renew your Dubai trade license.

Keep in mind that the UAE, Dubai trade license renewal procedure is only simple if all the requirements are followed precisely. Any mistakes you make during the application procedure can result in costly setbacks. As the leading business setup consultant in Dubai, Global Link offers best the services to our clients.