A trade license is an essential document for running a business in Dubai. A business needs to obtain a trade license to legally operate in the city. This license is necessary for various activities, including commercial trading, manufacturing, and providing professional services. Trade License Renewal on time is crucial for maintaining the legal status of your business in Dubai.

Failure to renew your trade license before its expiry date can result in penalties, fines, or even the closure of your business. In addition, an expired trade license can negatively affect your business’s reputation and credibility, making it difficult to secure new clients or customers.

In this blog post, we will discuss the importance of Trade License Renewal on time and provide a step-by-step process for renewing your trade license in Dubai. We will also cover the required documents, renewal costs, and the penalties for not renewing your trade license.

Steps to Renew Your Trade License in Dubai

To renew your trade license in Dubai, you need to follow 4 simple steps.

Step 01: Check the Validity of the Tenancy Contract

The first step in renewing your trade license in Dubai is to check the validity of your tenancy contract. The contract should be valid for at least one month from the date of renewal. If the contract is not valid, it will not be possible to renew your trade license.

Step 02: Get Activity-Specific Approvals

Let’s say that during your trade license application process, the Municipality department or Road or Food department in Dubai asked you to obtain certain approvals.

The same goes while renewing your trade license. You need to get re-approvals from the same departments based on your Business activity.

Step 03: Application to DED

After checking the validity of your tenancy contract and getting the necessary approvals, you need to fill in the BR/1 form and attach the required documents. 

Once you submit the application to the DED, they will verify the documents and send you a payment voucher via email. The voucher will indicate the renewal fees.

Step 04: Make the Payment

Upon receiving the payment voucher, you need to make the payment within the given time. If by any chance you fail to make the payment within the given time, the link will expire, and you have to re-submit the entire application again.

Documents required to Renew your Trade License in Dubai

1. Ejari Registration

In Dubai, Ejari is a mandatory registration system for tenancy contracts. This system establishes a legal contract between a landlord and tenant, ensuring that the terms of the lease are adhered to.

Having an Ejari registration is essential for trade license renewal in Dubai, and the business owner should have the updated Ejari certificate while submitting the renewal application.

2. Tenancy Contract with Validity

The tenancy contract is another significant document for trade license renewal in Dubai.

Before submitting a renewal application, the business owner must ensure that the tenancy contract is valid and up-to-date, with a minimum validity of one month.

3. Copy of Initial Trade License

For this renewal process, Business owners must provide a copy of their initial trade license while applying. This document is essential to prove that the business has a valid license to operate in Dubai.

4. BR/1 Form

The BR/1 form is the official form available at the DED, which needs to be filled out by business owners for trade license renewal in Dubai. 

It includes core information about the business, such as the business activities, the partners involved, and the required approvals. The BR/1 form is available online on the Dubai Economy website.

5. Photocopy of Passports of all Business Partners

Business owners must provide a photocopy of the passport of all partners involved in the business while applying for trade license renewal in Dubai. 

If any partner is unavailable, the business owner can provide a power of attorney to an authorized representative to complete the renewal process on behalf of the partner.

What is the Cost of Trade License Renewal in Dubai? 

The trade license renewal cost in Dubai varies with the free zone and jurisdiction in which the business operates. The standard rate for trade license renewal is AED 8,000 to AED 15,000. 

However, business owners can expect discounted accommodation fees if they have a residential Ejari and sizable discounts from Chamber of Commerce fees.

What is the Penalty for not renewing Trade License in Dubai?

It is essential to renew the trade license on time to avoid any penalties or legal consequences. The Dubai government may levy the following possible penalties for delaying the trade license renewal process:

• Lose your Business: The business owner may lose their business if they fail to renew the trade license on time.
• DED may levy a monthly fee: The Dubai Economic Department (DED) may levy a monthly fee for not renewing the trade license on time.
• Blacklists the business if continues to operate without a renewed license: The Dubai government may blacklist the business if they continue to operate without a renewed trade license.
• Restrict from operations: The Dubai government can restrict you from conducting any Business operations until the trade license is renewed.

What is the Grace Period for Trade License Renewal in Dubai?

Business owners have a grace period of 30 days from the date of expiry to renew their trade license in Dubai. 

However, we recommend renewing the trade license at least one month before the expiry date to avoid any penalties or legal consequences.

Is the Process of Trade License Renewal the same for Mainland and Freezone Companies?

Yes, the process of Trade License Renewal for both Mainland & Freezone companies is almost the same.

However, to renew your Trade License in Freezone, you are not eligible to directly initiate the process on your own. You have to get your renewal process initiated with your Business Consultant who has helped you in registering your Business.

If you are no longer availing the services from your Consultant then you need to get a NOC from your old Consultant and hire a New Consultant to get your Trade License Renewed.

FAQs on Trade License Renewal in Dubai

Q. What happens if I don’t renew my trade license in Dubai on time?

A: If you fail to renew your trade license in Dubai before its expiration date, you may be subject to fines, penalties, or legal action.

Q. What is the fine amount for Expired License in Dubai?

A: Once your license is expired and passed over the grace period, then you will be charged AED 200 Dirhams every month until your renewal is done.

Q. Can I renew my trade license in Dubai online?

A: Yes, many free zone authorities in Dubai offer online trade license renewal services. However, the DED requires physical submission of the renewal application and documents.

Q. How long does it take to renew a trade license in Dubai?

A: The processing time for trade license renewal in Dubai varies depending on the issuing authority and the completeness of the application. Generally, it takes between two to five working days.

Q. Can I make changes to my trade license during the renewal process?

A: Yes, you can make changes to your trade license during the renewal process. However, you may be required to submit additional documents like MOA and pay additional fees for the changes.

Q. What happens if my trade license renewal application is rejected?

A: If your trade license renewal application is rejected, you may be given a grace period to rectify any issues. If the issues are not resolved, your license may be revoked.

Q. How many times can I renew my trade license in Dubai?

A: Generally, trade licenses in Dubai can be renewed for up to 10 years, depending on the issuing authority and the type of business. However, some free zones may have different renewal policies.

Q. Can I renew my Visa if my trade license is expired?

A: Legally you are required to renew your trade license. If in any case, you haven’t renewed your license then your visa could be blacklisted and further stop you from entering the country with extreme consequences.

Q. Can I Freeze my Trade License in Dubai?

A: Yes, you can Freeze your Trade license in Dubai. In usual cases, you can freeze for 3 years. However, if you are the sole owner of your Business and registered with DED, then you are given One year to freeze your Business. During this freeze period, you are legally not allowed to operate any kind of Business transactions.

VR1 Global Business Consultancy can help you!

We hope that this article gave you a clear idea about the process & requirements of Trade License Renewal in Dubai 

The process is as simple as it is. But if you still have any kind of questions or need additional guidance on renewing your trade license in Dubai, then make sure to Whatsapp us or email us at info@vr1global.com

VR1 Global Business consultancy is one of the most trusted and experienced Business setup consultancies in Dubai. 

We provide the best services for Small, Medium & Large Businesses that are planning to operate in Dubai, UAE. 

By becoming our client we can guarantee you that you will get a clear view of the Dubai Market, and growth opportunities as well as the opportunity to connect with successful entrepreneurs without any kind of hassle and trouble. 
Contact our Business setup expert for additional guidance on starting your Business in Dubai.