Having a commercial license in Dubai is an excellent advantage for investors because of the UAE’s facilities and favorable environment for operating companies. However, the trade license renewal is a crucial business operation in Dubai and all of the UAE. Companies must renew the Dubai trade license on time to avoid any penalties and keep their business running smoothly without complications.
All commercial trade licenses in Dubai must be renewed annually, or every two years if the lease agreement permits. The trade license renewal process requires a new lease agreement. The Real Estate Regulatory Authority file for EJARI must be attached as well. These two files will then be sent to the Department of Economic Development for trade license renewal.
If your business license expires and you continue to operate as a company, then you can face monetary consequences. Your business can be excluded. Business Link UAE helps you with every step of your trade license renewal in Dubai.
In this article, we will guide you through the whole process of license renewal.
The Basic steps of Trade License Renewal
- Application: Visit the Department of Economic Development for the presentation of documents (an authorized PRO provider can handle this for you)
- Lease Agreement: Present a valid lease agreement with the Real Estate Regulatory Agency (EJARI). In the case of individual property, you must present a certificate of ownership.
- Commercial Activity Approval: Provide the approval of the commercial regulator, if applicable, for your license.
- Fee Payment: Pay the license renewal fees. Rates depend on the particular business activity assigned to your license; meanwhile, license renewal fees vary from one license to another.
- Receive the Renewed License: After completion of your payment, you will receive a renewal license.
If you are not thinking about renewing your continental business license on time according to the expiration date, you can request freezing your license. This process allows you to freeze and delay the renewal of your business license for a certain period to avoid charges for the renewal of the expired license.
Being blacklisted is a severe punishment that imposes restrictions on all aspects of your operations, such as:
- Blockage of the transactional capabilities of the company.
- Visas cancellation and travel bans.
- Sponsor’s dissociation from the company.
- Deportation of the owner, shareholders, directors, and managers.
Documents of Trade License Renewal
- A letter from the company or institution, requesting to suspend the license temporarily.
- A letter from the Ministry of Labor indicates the absence of sponsored persons in the license.
- Report from the inspection division in the Dubai Department of Economic Development.
After the presentation of all the previous letters, the Department of Economic Development will grant you an official state of ‘Freezing’ that will keep your existing license but not active. Therefore, you will not receive any unnecessary charges for the renewal of the expired license. We recommend all our valuable clients operate and manage their businesses intelligently and effectively to reduce the overall cost.
To reduce the indirect cost of the entity, there are so many elements that need to be implemented. The rental of a convenient and profitable office in a location with a business center is an ideal element to not only reduce the cost of rent but also help you reduce the cost of employees, public facilities, and many other aspects, which we will talk about in some upcoming articles to keep you educated with some useful thoughts.
