The Ultimate Guide to Trade License Renewal in Dubai: Mainland vs. Free Zone Companies

Trade license Renewal Dubai is extremely crucial if you don’t want your business to continue running into issues. It doesn’t matter whether your business is in the mainland or a free zone; any business needs to renew its license on time. If you don’t have a valid license, you might end up paying fines, facing delays, or even running into legal issues. First, learn about the process. Then, get the proper documents and proceed with care.

Finally, make sure to pay the renewal fees before the deadline. In this guide, we’ll explain everything so you can renew your license easily.

About Trade License Renewal

Renewal of the trade license in Dubai keeps your business legally active. It is something that the government mandates. The process can appear complicated, but after learning the steps, it’s easy to handle. All companies, large or small, have to renew it every year.

First of all, the process of renewing a trade license in Dubai is under the control of the Department of Economic Development (DED) or the concerned free zone authority. You can’t conduct business legally without a valid license. So, keeping it up to date is a must.

Besides, business owners should remind themselves of this. If your trade license expiry Dubai is overlooked, you might be penalised. Now, let’s proceed and observe what documents you’ll require.

Documents Required for Trade License Renewal Dubai

Before the company license renewal Dubai, you’ll have to gather the proper documents. To start with, gathering these documents saves time. Then, you can escape delays, penalties, or refusal. So, be well-prepared.

1. Copy of Current License

A copy of the Current License confirms your business is already registered and operational. It also indicates previous approval from authorities. Thus, it is an essential document in the renewal process.

2. Ejari Certificate

It confirms you have a legal lease contract for your office. Additionally, it’s required for mainland companies. In short, Ejari renewal for trade license is a necessity.

3. Lease Agreement

Your lease should have a minimum validity of one more month. Additionally, it should be consistent with Ejari details. Therefore, double-check the expiry date before submission.

4. BR/1 Form

It should be completed and signed by all partners. Then, affix it to your application. Therefore, it validates partner agreement for license renewal.

5. Passports of Partners

Passport copies of all the partners. And in case you’re a sole proprietor, add your own. This way, proper identity verification can be carried out.

6. Visas (if required)

If the partners or managers reside within the UAE, provide copies of their visas. Additionally, this serves to justify their legal status. As such, incomplete visa information might lead to delays.

7. External Approvals

Only for companies in certain industries, such as food or health. For instance, restaurants need Dubai Municipality approval. Last but not least, verify with the authorities whether you will require one.

Inadequate documentation may jeopardise your Dubai trade license renewal process. The best is to double-verify or seek the help of a PRO service.

How to Renew Trade License in Dubai

Renewing your license is easy if you do each step. First, get everything in order. Then, glide through the process. So, here’s what to do correctly.

1. Check Your Ejari

Ensure that your Ejari certificate is active and valid. Also, ensure the lease has been registered. Otherwise, your license will not be approved by the DED. Always check this first.

2. Collect Documents

Collect all necessary documents in advance. For instance, your copy of the license, Ejari, and BR/1 form. Further, verify for any incomplete paperwork. In this way, you save yourself from future delays.

3. Complete the BR/1 Form

It is a simple form for trade license renewal. Then, get it signed by all partners. Next, attach the same along with other documents. Finally, retain a duplicate for record purposes.

4. Submit Online or In-Person

You can renew online via the DED portal or at a service centre. In the meantime, verify all uploads. Therefore, select whichever option is more convenient for you.

5. Pay Trade License Renewal Fees UAE

Fees vary based on business type and activities. Sometimes additional charges might be required. Hence, check the payment breakdown before paying. Then, make the payment.

6. Download License

Once your renewal is approved, download it from the DED portal. Usually, approval takes 1 to 3 days. Finally, keep a printed copy for future use. That way, you’re always ready.

You can also renew using the DED’s auto-renewal service. Just send your expired license number via SMS to 6969, follow the payment link, and you’re good to go.

Difference Between Free Zone and Mainland Trade License Renewal

Mainland

• Handled by DED.
• Requires Ejari registration.
• May include inspections.

Free Zone

• Dealt with by your free zone authority.
• May need NOCs or good standing certificates.
• Easier if you don’t require outside approvals.

Free zone trade license renewal procedures in Dubai vary based on your zone. DMCC, JAFZA, SHAMS, and RAKEZ each have different rules. If you are not sure, contact a professional services firm in the UAE for assistance.

Trade License Renewal Cost Dubai

The trade license renewal fee in Dubai varies with several factors to be considered. Type of license, business activity, and location influence the prices.

Here’s a rough estimate:

• License Registration Fee: AED 10
• Knowledge Dirham Fee: AED 10
• Innovation Dirham Fee: AED 10
• Advertisement Fee: AED 350
• Service Request Form: AED 50
• Foreign Trade Name (if applicable): AED 1,000 to AED 3,000
• General Trading License: Approximately AED 15,000
• Investment Activities: Up to AED 15,000
• Construction Activities: AED 10,000
• Business Centre Fee: AED 25,000 (optional)
• Dubai Chamber Fees: AED 300

To renew business license Dubai, always visit the most up-to-date rates. They could change annually.

Grace Period for Trade License Renewal

You are given a 30-day grace period once your license has ended. Within this grace period, you can still apply for trade license renewal Dubai without having to pay massive fines. But don’t be too slow.

Penalties after 30 days. The grace period is offered to mainland companies. Free zones may not be so lenient. Be sure to check with your zone authority in case. A PRO service prevents you from missing your renewal time.

Late Renewal Fines Dubai

Missing your Dubai trade license renewal will cause you real issues. For starters, you will receive heavy fines. Next, your business will cease to function. Therefore, better to renew early.

1. AED 5,000 Fine

You will be charged AED 5,000 as a fine for operating a business without a valid license. Also, the DED charges this. So, always renew prior to your license expiring.

2. AED 250 Monthly Fine

If you procrastinate, there’s an AED 250 penalty per month. Further, this continues to accumulate. Therefore, don’t wait too long for your renewal date.

3. Blocklisting Risk

Those companies that continue to operate without renewal risk getting blocked. Once blocked, it’s difficult to restart. Therefore, it’s wiser to steer clear of these risks.

4. Termination of the Company

Lastly, the DED can shut down your business for good. Afterwards, reopening will not be feasible. So, be careful about UAE business regulations.

Late renewal fines in Dubai are stringent but preventable. These regulations are one aspect of UAE business regulations to ensure good business practices. To avoid trouble, mark your calendar. Renew the license two weeks before expiry.

PRO Is Here to Help

Renewing a trade license in Dubai can be confusing, particularly for the first time. It is for this reason that contracting a PRO services company in UAE is a wise decision. The professionals understand the laws, are current, and take charge of the entire process on your behalf. To start with, they assist in gathering the appropriate documents such as Ejari and BR/1 forms. Next, they handle external approvals, if required, and present everything to your DED or free zone authority.

Additionally, they can expedite your application to save you time. If you are establishing a new business setup in Dubai, PRO services in Dubai can assist you with each step. Best of all, they remind you before your next renewal so that you never miss a deadline. Stress-free and convenient.

FAQs

Q1. What if my trade license expires?

If your license has expired, first, there are fines. Then, business halts. Additionally, blocklisting occurs. So, renew early to save yourself from trouble.

Q2. I can renew my license online.

Yes, you can renew online through the DED portal. Also, the mobile application is functional. First, collect documents. Then, submit and pay.

Q3. How much does it cost to renew a trade license in Dubai?

Typically, it takes AED 6,000 to AED 15,000. But it varies depending on your activity. So, verify fees prior to paying.

Q4. Can I renew during the grace period?

Yes, you have 30 days upon expiry. But you have to pay fines. So, it’s good to renew before waiting for the grace period.

Q5. Does it apply to free zones as well?

Not always, as there might be rules in each zone for renewing a trade license in Dubai. So, check with your free zone. Also, procedures might vary slightly.

Conclusion

Renewing a trade license in Dubai is not merely a formality. It’s the way to operate your business legally and smoothly. From verifying your Ejari to paying your fees, every step counts.

Whether you’re handling a DED trade license renewal or a free zone trade license renewal Dubai, getting it right avoids trouble. So, understand your obligations, plan, and get help from PRO services in Dubai if needed.

Moreover, if you’re starting a business setup in Dubai, it is easier with the right support. Stay smart, stay compliant, and renew that license on time.