For many, starting and running a successful business in Dubai is a dream come true. This is because the UAE has created the perfect environment for lucrative enterprises through corporate friendly laws, modern infrastructure, and strategic trade ports that offer easy access to the international market.
However, in order to keep your dream of running a Dubai-based business alive, you must make sure that you meet all legal requirements. The biggest legal requirement for businesses in the UAE is annual trade license renewal.
Simply put, the trade license is the legal document permitting businesses to exist in Dubai. It is valid for one year, and must be renewed before the expiration date in order to continue legally performing business activities.
Here is everything you need to know about trade license renewal in Dubai
Types of Trade Licenses in Dubai, UAE
Dubai offers a host of different types of trade licenses, that cater to different types of industries and business activities. The type of trade license you have may cause the trade license renewal process to vary. However, one thing is for sure – it is compulsory for all businesses to renew the trade license in Dubai, no matter what type of trade license they have.
Main types of trade license in Dubai:
Commercial License: For general trading businesses involved in the buying and selling of different types of products.
Professional License: For service-related businesses. Consultants, agencies, and other types of skill-oriented entrepreneurs may opt for the professional license.
Industrial License: For companies involved in the manufacturing of different types of industries and goods. For example, factories.
Process for Trade License Renewal in Dubai
Now that you understand the types of licenses that are available to obtain in the UAE, we can move onto the process of annual trade license renewal.
The business trade license renewal process in UAE can be cumbersome for many business owners, which is why we always recommend taking the help of an expert agency. Business setup consultants can take care of the entire trade license renewal procedure and help you avoid any penalties for an expired license.
Here is an overview of the trade license renewal process in Dubai:
1. Renew Your Tenancy Contract in Dubai
Before you can renew your license, you must ensure that your tenancy contract for your office is valid for at least one month after the application of the renewal. In case your tenancy contract is about to expire, you must get it renewed before filing for trade license renewal.
2. Gather relevant documents
Next, gather all necessary documents as part of your trade license renewal process. This will likely include the tenancy contract, passport photocopies for all shareholders, a copy of your original trade license, renewal confirmation for P.O. box, and any other documentation deemed necessary according to the jurisdiction and business activity.
3. Submit the renewal application
The application for trade license renewal is known as the BR/1. This application needs to be typed and submitted online along with a copy of your current trade license and passport copies for all business partners. These documents can be submitted through the online portal.
4. Submit payment for trade license renewal
Finally, you must submit the fees for your company’s trade license renewal in UAE. You will not receive the renewed license until and unless the fees voucher is paid. You will immediately receive your new license as soon as the voucher payment has been cleared.
What Happens If You Do Not Renew a Trade License in Dubai?
You cannot legally run a business in Dubai without a valid trade license. Hence, the consequences for not renewing your license are very severe. The failure to renew a trade license in UAE, even after the 30-day grace period, will result in penalties such as fines. It can also cause your business to be forcefully liquidated or blacklisted in the UAE. In many cases, you will also be deported from the Emirates.
Therefore, it is always a good to renew your license.
The Best Trade License Renewal Services in Dubai
Indus Business Services strives to make it easy to run a business in the UAE. That is why we offer complete corporate services, including trade license renewal in Dubai. We will take care of the complete license renewal procedures, so that you no longer have to worry about meeting expiration deadlines! Contact us today to learn more.