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Renew Your Trade License in Dubai
A Dubai Trade License, which gives you the right to do business or carry out your trade in the United Arab Emirates, must be renewed every year.
List of Documents Required for Trade License Renewal in Dubai
- BR/1 Form
- A copy of your current Business License
- Ejari or Tenancy Contract
- Copies of the passports of all business partners
At the time of application for renewal of Trade License, the Ejari must have a validity of at least one month remaining on the contract. If this is not present, the Trade License renewal application is likely to be rejected. So if your Tenancy Contract is about to expire, it makes sense to renew the same if you plan to do business at the same address. In case you have plans of moving out later, it would be advisable to enter into a short-term Tenancy Contract for the purpose of renewing your Trade License. Or else you could move into your new address before you apply for renewal of your Trade License.
Free zone companies may be additionally be required to submit a No Objection Certificate or NOC from the Free Zone Authority that oversees the free zone that they are located in. So if you have any dues pending towards the Free Zone Authority for use of its facilities, it would be a good idea to clear them before you apply for renewal of your Trade License. In some free zones, you may be required to audit your company before renewing your Trade License. Some free zone companies are required to renew their membership with the Chamber of Commerce before they can apply for Trade License renewal in Dubai.
Some businesses are required to secure additional approvals before their Trade License can be renewed. For instance, if you are into trading food items, you need permission from Dubai Municipality as part of the Trade License renewal process. Or that of the Dubai Police if you are involved in gold trading. You will need special permission from the Dubai Narcotics Department if your business involves the sale of chemicals. Transportation companies require approval from the Roads and Transport Authority, while businesses that are into healthcare need the permission of the Ministry of Health and Prevention.
Branch Offices located onshore also have to submit a Certificate of Good Standing / Certificate of Continuity of Existence along with their application for Trade License renewal in Dubai.
Consequences of Not Renewing Your Trade License in Dubai
You are expected to renew your Trade License 30 days before it expires.
- The Department of Economic Development can impose a penalty of AED 5000 for not renewing your Trade License on time.
- If you do not renew your Trade License on time, you are liable to a fine of AED 250 for every month you operate without a valid Trade License.
- There is the danger of your company being blacklisted, which means that it will have to cease all operations immediately.
- An even worse punishment exists in the form of your company being banned for operating without a valid Trade License. If this happens, you cannot re-establish your presence in Dubai.
- There is the likelihood of your bank freezing your corporate bank account, so that you cannot access the funds in your bank account.
- The Ministry of Labor does its part to ensure that no further employment visas are issued to your company.
- The General Directorate of Residency and Foreigners may refuse to issue dependent visas to the family members of employees or business partners in the company.
- Your Customs Client Code may be cancelled, meaning you cannot export anything from – or import anything into – the United Arab Emirates.
Existing visas that have already been already issued may be withdrawn, running the risk of deportation from the United Arab Emirates. So if you do not plan to continue with your business, you need to cancel your Trade License instead of abstaining from renewing your Trade License.
How to Renew Your Trade License in Dubai
Renewing your Trade License in Dubai consists of the following steps
- Fill out the BR/1 form, along with the signatures of all the business partners; attach the supporting documents including Ejari, and submit them all as a single application for Trade License Renewal to the Department of Economic Development, Dubai.
- The Department of Economic Development reviews your application for Business License Renewal (this is the same as a Business License) and sends you a payment voucher outlining the fees payable if everything is in order.
- You can make the payment [this varies according to the size of the company, its structure, the number of Business Activities and so on], duly following the instructions on the payment voucher that also contains a unique transaction number.
- Once the payment is received, you can expect to receive your renewed Trade License immediately. Dubai strives to live up to its reputation as an investor-friendly destination for business and trade. As such, they have made the process as simple as possible.
There are no delays in this relatively straightforward and seamless process.
Why Choose A&A Associate LLC for Renewal of Trade License in Dubai?
We have years of experience helping companies renew their Trade Licenses in Dubai and the rest of the United Arab Emirates. We can help you fill out the BR/1 form correctly, see to it that all the supporting documentation is attached, and make the payment on your behalf. This way, we ensure that you don’t have to go through the hassle of renewing your Trade License every year. You can continue to focus on what you do best – running your business.
For more details, get in touch with us.
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