When a new business is starting in Dubai, UAE, then it is essential to issue a trade or business license to set your business successfully. This trade license is a legal paper that allows your business to do all those activities present in the trade license document.
Don’t forget that this trade license has a validity period, and it gets expired in a year, so you have to renew the trade license every year. Trade license renewal is significant to run your business successfully. If you delay renewing the trade license, you can be in serious trouble, and you will have to pay the penalty.
Who Renews the Trade License?
Department of Economic Development Dubai, Renews the trade license and also issues the trade license. DED says that a trade license is a legal document that enables a business owner to do the business activities mentioned in the form.
DED has made it simple to issue and trade license renewal Dubai through the online process.
The license By DED is beneficial for the following activities-
- Commercial Trade License
This license renewal is for a business that involves trading, buying, and selling goods and services. It includes firms like brokerage, logistics, rental estate assistance, banking, etc.
- Professional Trade License
This license is essential for those businesses that include the selling of professional services like salons, event management, child care services, laundry services, consultancy services, sports, etc.
- Industrial License
Those businesses that are involved in the manufacturing of goods need to issues this license. All types of manufacturing companies come under it. It is a vast category and includes many types of businesses like canned goods, clothes manufacturing, meat processing, and medical and pharma products manufacturing. etc
All businesses can issue the trade license from DED, but some business types would require special permission from other authorities.
Papers Required for License Renewal
- Tenancy Contract
- Ejari Registration Certificate
- Passport copies of all business partners
- Typed BR/1 form
- Copies of current Trade License.
Grace Period for Trade License Renewal
If your trade license expires, then you get a grace period of 30 days to renew it. If you don’t renew the right during that period, you will be charged a fine of 250 AED by DED. Therefore, during this grace period, you can either renew the license or cancel it.
Trade License Renewal Process
The update process itself is not a problem because most jurisdictions now use the online platform for follow-up and a hustle-bustle avoidance solution. The date of the license update should be in notice because it should not exceed. Has an extended license on time, guaranteeing the continuity of business practices without complications or concerns.
Valid Tenancy Contract
The first thing someone needs to ensure that the company’s rental contract must have a minimum validity of 1 month approved by Ejari. If the rental agreement does not have validity for a month, then the license is not valid for the Renewal process.
Specific activities on the license will require previous agreements from third party authorities before the update. For example, certain professional license activities need managers to remove the American Institute of Dubai (AID). Another example is if you have a license with an interior Designer business.
There can be a chance that your license is rejected or send you back the application to make the corrections by adding comments to the application. This way, you cannot trade for some time. Also note, some costs apply to third parties to get the NOC needed to present to the Ministry of Economic.
Next, you need to collect a rental / Ejari contract and third party approval (if required for your license). Also, bring a copy of your current business license or other emirates and go to the nearest DED or TasheelCenter for submitting documents for license renewal. Besides, if you have an online account, you can register for online updates. After you give all the essential documents to the DEd, they will check it properly, and if everything is good and correct, they will renew your business license without delay.
One can apply for updates through different media such as e-service, cellular applications, official law firms, and authorized service centers.
After approval, the Department of Economic Development will give you a payment voucher. There will be a fee that applies to publishing this payment voucher. The payment voucher has several parts that you need to take care of, as you can submit this cost reduction through various departments before making a final payment. For example, linked to your rental value is a part like market costs—this, generally the percentage of the rental value. It would be good enough if you made sure that the estimation is accurate. Next, there are parts related to partner accommodation and employee accommodation. There is also this reduction by presenting the documentation needed to the Department of Municipality. It is where the business setup consultants experience and business services take place. Business setup consultants are very sure about the process of license renewal and make sure you are making the right payment.
Payment of Fees
After sending the application, DED will divert the payment voucher. After receiving a voucher, proceed to the payment procedure. Immediately after making a payment, you will receive your new license from the channel.
How to Renew the Trade License?
DED has three different methods to update trade licenses: Offline Procedures, Online Procedures, or Automatic Extension Systems. However, DED’s efforts to facilitate obtaining and updating trade licenses, sometimes handling this procedure to receive and update trade licenses in Dubai promptly, can be proven complicated for entrepreneurs.
- Online Process
The online process is through DED’s comprehensive website that is adjusted to meet all customer needs. You can visit the website, login into your account, and then apply for the license renewal directly and submit all the papers.
To use online services, company owners need to set up accounts before using the portal. The owner must send personal documentation to Ded to activate an online account and use the system. This portal allows the owner to make payments online, but the registered payment account should be in the owner’s name.
- Offline Process
The help of services agents do the offline process, and business consultants help. You can take the use of business setup consultants for easy and hassle renewal of your trade license.
Business service providers or consultations will always comply with all the terms and conditions and regulations and regulations regulated by the government while updating trade licenses.
They will have all documents updated and prepared beforehand because the land licensing application process’s maintenance requires careful documentation.
- Auto-Renewal Process
The fastest and hassle-free way is getting your license renewed automatically by paying an extra fee for the same.
The procedure mentioned above is for updating the Dubai simple trade license, Abu Dhabi, or other emirates. Although the business license renewal seems a straightforward process, if your business undergoes some changes like a change in local sponsor or new shareholders in your business, the process will be different and more complex. Therefore, it is good to take a business setup consultant in Dubai for hassle-free license renewal.