A trade license, also referred to as a business license, is a document provided by the Department of Economic Development (DED) or by any free zone authority that enables a corporation to offer specific activities in the UAE. Maintaining a valid trade license is extremely important for any business activity in the UAE. Having a valid trade license allows your company to legally conduct business in the country. The failure or delay in renewing your trade license can lead to interruptions in operations in daily business activities and result in potential penalties.
This post is a step-by-step guide on how to renew a trade license in the UAE. It is to ensure that the renewal of your business goes in line timely and smoothly.
Process For Trade License Renewal
The United Arab Emirates’ renewal of trade licenses is an important process to ensure the smooth running of your business legally. Gatestone Group will assist you in the following steps:
Step 1: Gather required documents
Collect all the company documents needed for renewal. This will include a completed form of application with identification documents of the owner (passport, visa, Emirates ID), valid tenancy agreement, Ejari, current trade license, and any other document that may be asked for. In some cases, the authority may request audited financial statements.
Step 2: Submit application
Upon receiving these documents, Gatestone Group will fill out a renewal application form and then submit it through an officially licensed government channel. It may be submitted to the DED or offered online through their portal. Gatestone Group can handle the task for you and ensure that it is done with ease and without any hindrances.
Step 3: Payment of renewal fees
Once the application is approved, a payment voucher will be received. Gatestone Group will complete the payment on your behalf.
Step 4: License renewal and issuance
Once the payment is verified, the trade license renewal process will be completed, and the renewed license will be issued.
Documents Required for Trade License Renewal in Dubai
The UAE trade license is valid for a period of one year from the time of issuance, as mentioned in the trade license. The process of applying for the renewal of the license should be accomplished at least 30 days prior to the expiration date.
To renew your trade license in the UAE, the following documents must be submitted:
- A completed application form for trade license renewal
- A valid tenancy agreement
- A copy of the current trade license
- A copy of the business owner’s passport and residency visa
- A copy of the company owner’s Emirates ID
- Ejari registration
- Audited financial statements
Following are some additional factors to consider throughout the trade license renewal process:
1. Business activity: If there is a change in business activity while renewing the license, it must be updated accordingly.
2. Company sponsor: The license should be updated with such information in case of a change of company sponsor or owner at the time of renewal.
3. Company structure: Any change within a company structure, such as adding or removing a partner or shareholder, shall be updated in the renewed trade license.
Consequences for Failing to Renew the Trade License
- Penalties: It is within the authority of the UAE government to initiate an imposition of a fine on businesses that do not renew their respective trade license on time. As such, penalties can go up to AED 5,000 for businesses operating without a valid trader license. Meanwhile, entrepreneurs who continue to conduct their businesses with an expired license would incur a monthly fine amounting to AED 250.
- Blacklisting businesses: A business that operates with an expired trade license may cause the closure of the business, become deprived of all transaction activities, and have the visas of all on its sponsorship nullified.
- Company ban: A company that is found to be operating without a valid trade license in the UAE is at risk of being shut down by DED at any given time.
- Employee visas: Company can face difficulty in applying for new work visa applications, or visa cancellations.
- Bank Account: Bank may freeze or close the corporate bank account/s.
Conclusion
To sum up, renewing your trade license in Dubai is a straightforward process. Understanding the essential actions and completing the renewal requirements on time guarantees that company activities continue without disruption.
Gatestone Group is ready to assist you in streamlining the process, allowing firms to leave all the tedious work to us. To schedule a free consultation, call +971 4 450 1023 or email [email protected].
