Dubai trade license renewal

Renewing the trade license in Dubai is an important procedure to ensure the continuity of the company’s business legally and smoothly. This procedure requires submitting the necessary documents and paying the prescribed fees on time. It is important when setting up a company in Dubai that the company adheres to the local laws and regulations to avoid any legal problems.

Dubai trade license renewal

Dubai trade license renewal service as the expiration date approaches, through renewal centers or by sending a text message in order to ensure the continuity of practicing commercial activity legally. Dubai trade license renewal fees are the same value as the issuance fees, with the addition of municipal fees.

Channels for providing the Dubai trade license renewal service

• By sending a text message to 6969.
• Through the Invest in Dubai platform.
• Or the Dubai Economy and Tourism website.
• Authorized service centers.

Issuing a Dubai commercial license

To issue a business license in Dubai, you must follow the following steps:

• Choosing the type of company: You must determine the type of company you want to create, whether it is a sole proprietorship, partnership, limited liability company, or public company.
• Choosing a business: Select the business you want to practice in Dubai, and make sure it is compliant with Dubai’s laws and regulations.
• Choosing a company name: Choose a unique and appropriate name for your company, make sure it has not been used by another company, and must be in line with Dubai’s company naming laws.
• Submitting an application: Submit an application for a commercial license to the Dubai Economic Development Department (DED) or the competent authority in the free zone of your choice.
• Submitting documents: You may need to submit a set of required documents such as passport, personal photos, business plan, and license application form.
• Payment of fees: The fees required to issue a trade license must be paid, and these fees vary depending on the type of company and its activity.
• Receiving the license: After reviewing the application, documents, and paying the fees, your trade license will be issued, and you are ready to start working in Dubai. You can obtain more information about issuing a commercial license in Dubai by contacting the Dubai Department of Economic Development or the competent authority in the free zone of your choice.

Cost of a business license in Dubai

The cost of a commercial license in Dubai varies according to the type of company and activity practiced. There are several types of commercial licenses in Dubai free zones, such as industrial, commercial, service, logistical, technological, and others. Therefore, the detailed cost depends on the type of license you wish to obtain.

You usually have a basic licensing cost that includes registration fees, permit fees, and basic licenses. In addition, there may be annual fees for license renewal and additional fees for other services such as business address, virtual office, logistics, visas, etc. It is recommended to contact directly the specific Dubai Free Zone Authority in which you wish to establish for detailed information on the exact costs and financial requirements.

They will have a list of current fees and costs related to issuing business licenses in their free zone. This information is subject to change and depends on current policies and regulations in Dubai Free Zones. Therefore, it is always advisable to check official sources and consult with a legal advisor or competent lawyer to obtain updated and accurate information about the costs and procedures for obtaining a business license in a free zone in Dubai.

Read also: Steps to renew a commercial license in Dubai

Types of business licenses in Dubai

Renewing a Dubai trade license is an important process that requires resubmitting the application and paying the required fees annually, as the necessary information and documents are updated for the company to ensure it continues to practice commercial activity legally and without problems. Business owners in Dubai must adhere to the specified deadlines. Renewing a commercial license in Dubai is an important process that requires resubmitting the application and paying the required fees annually, as the information and documents necessary for the company are updated to ensure that it continues to practice commercial activity legally and without problems.

Business owners in Dubai must adhere to the deadlines for renewing the license to avoid any penalties or cessation of business services. To avoid any penalties or interruption in business services. In Dubai, there are several types of business licenses that you can obtain according to the needs of your company and its business activity.

Here are some common types of business licenses in Dubai:

• Sole trade licence: Also called a “free trade licence”, it allows an individual to conduct business activity under his own name. This license is suitable for individuals who want to establish a small company without partners.
• Partnership Trading License: Allows a group of people (partners) to operate a business together, dividing profits and losses according to the partnership agreement.
• Limited Liability Trading License (LLC): Allows a company to have a separate legal personality from shareholders, and protects shareholders from personal liability for debts and losses to the company.
• General Trade License: Allows a company to practice multiple commercial activities without specific restrictions on commercial activity.
• Foreign company branch licence: allows a foreign company to open a branch in Dubai to practice its commercial activity.
• E-Commerce Company License: Allows companies to register and operate businesses online without the need for a physical office in Dubai. These are some of the common types of business licenses in Dubai, and there are also many other licenses available depending on the circumstances of the company and its specific business activity. It is best to consult an experienced local legal advisor or accountant to determine which type is most appropriate for your company.

Related topics:  What is the cost of a trade license in Dubai?

Steps to renew a commercial license in Dubai

1. Automatic renewal via text message

Send a text message to 6969 with the commercial license number immediately upon its expiration and pay the fees by clicking on the payment link.

2. Renewal through approved service centers 

Renewal by consulting one of the authorized service centers and sending the requirements via email, then paying through the available payment methods.

3. Through the Invest in Dubai platform

• Log in through the platform’s website.
• Choose to renew the license.
• Enter the license number or trade name.
• Enter email.
• Enter phone number.
• Click on the Send Data button.

Best practices for renewing a commercial license in Dubai

Here are some best practices for renewing a business license in Dubai:

1. Advance planning:

   • Determine your license expiration date and plan ahead for renewal before expiration.
   • Review the specific requirements for license renewal and check the required documents and legal procedures.

2. Research and preparation:

   • Research and prepare in advance about new requirements or changes to local laws and regulations.
   • Ensure that all necessary documents such as contracts, financial reports, and sublicenses are up to date and ready to submit.

3. Suitable time:

   • Try to renew the license in a timely manner before it expires, in order to avoid possible penalties for delaying the renewal.
   • There may be busy times during the year, so try to renew during periods with the lowest workload to avoid delays.

4. Communication with relevant authorities:

   • Contact the relevant authorities such as the Department of Economic Development in Dubai to obtain the correct directions and guidelines.
   • Inquire about any modifications or updates to procedures and new requirements before beginning the renewal process.

5. Compliance with financial and legal requirements:

   • Make sure to pay all fees required to renew the license in a timely manner.
   • There may be other financial requirements such as financial reporting or security deposits, check and adhere to the requirements.

6. Thorough review:

   • Carefully review all documents and details before submitting your renewal application.
   • Ensure that all information provided is correct and up to date, and that all required documentation is available and complete.

7. Using professionals:

   • It may be best to retain a professional legal advisor or accountant to assist with the license renewal process and ensure compliance with requirements.
   • Professional accountants can provide you with the advice and support needed to facilitate the license renewal process.

8. Maintain documents and records:

   • Maintain copies of all business license documents and reports.
   • Create a system to organize and store documents in an organized and secure manner for easy access in the future.

9. Follow up lead times:

   • Make sure to follow and adhere to the time limits set for license renewal.
   • Create a calendar or schedule as a reminder of license renewal dates and any other relevant deadlines.

10. Commitment to updates and instructions:

    • Make sure to follow any updates or instructions issued by the government agencies concerned with renewing the license.
    • Properly implement any changes or new requirements to the license.

Topics that may interest you: Request to renew a commercial license

The importance of renewing a commercial license in Dubai

Renewing business licenses is of great importance in maintaining business activity. Here are some reasons why it is important to renew business licenses:

1. Compliance with Laws and Regulations: Renewing a business license means complying with local and national laws and regulations. Regulations and requirements may change over time, therefore companies must renew their licenses to ensure compliance with current legislation. Failure to renew the license may expose the business to legal risks and penalties.
2. Continuity in business: Renewing the commercial license is necessary to ensure the continuity of business activity. Without a valid license, the activity may be subject to suspension and the business owner may be subject to fines and penalties. Renewing the license ensures business continuity and avoids any interruption in commercial activities.
3. Trust and credibility: A commercial license is a document that proves the legitimacy of a business activity. When the license is valid, it enhances trust and credibility among customers, business partners and suppliers. Companies that renew their licenses regularly demonstrate their compliance with the laws and their commitment to providing high-quality services.
4. Access to benefits and privileges: Sometimes, some business benefits and privileges depend on having a valid license. Companies with valid licenses may be granted access to government facilities, obtain banking facilities, participate in government tenders, and other benefits and privileges.
5. Maintaining ownership rights: Renewing the license contributes to maintaining ownership rights to trademarks and other assets associated with the business. Typically, renewing a license requires updating information about the company and owned trademarks, so that intellectual property rights are protected.
6. Presence in commercial databases: Sometimes, access to certain services and business opportunities requires registration in various commercial databases. Some commercial license granting bodies may require the presence of the company in official databases or commercial lists, in order to ensure easy access to company information and facilitate business transactions.

Penalties for not renewing a commercial license in Dubai

Yes, legal penalties are usually imposed on companies and business owners in the event of renewing their Dubai business licenses. It is worth noting that penalties and consequences can vary based on local legislation and regulations in each country. There are some common penalties that can be imposed on companies or individuals who do not renew their business licenses, including the following:

1. Financial Penalties: Financial fines may be imposed on companies that do not renew their business licenses in a timely manner. The size of the fine is determined according to local legislation and government policies, and can range from small to large amounts depending on the degree of delay and the importance of the licence.
2. Stopping business activity: If the Dubai business license is not renewed, the business activity may be stopped temporarily or permanently. The company may be prohibited from doing business until the license is renewed and legal requirements are met.
3. Failure to obtain licenses and privileges: In some cases, access to some commercial privileges and licenses depends on the presence of a valid license. Failure to renew the license may result in losing the opportunity to benefit from some of the commercial privileges available to licensed companies.
4. Legal accountability: Business owners who do not renew their business licenses may be exposed to legal liability. Concerned authorities and competent government authorities may file legal claims against companies that are not committed to renewing the license, and this may result in the temporary or permanent suspension of business and the imposition of additional fines.
5. Impact on reputation and trust: Failure to renew Dubai trade licenses may have a negative impact on the company’s reputation and the trust of customers and business partners. This can affect business relationships and may cause you to lose customers and future business opportunities.

Need help renewing your business license in Dubai?

• We have teams of experienced consultants to renew the business license in Dubai.
• Years of experience in establishing companies in Dubai.
• Assistance in completing all necessary procedures to obtain the license.
• We offer you special and unique offers for establishing companies in Dubai.
• Providing service to our customers around the clock.
• Providing offices and warehouses for rent in Dubai.

The most important frequently asked questions about renewing a trade license in Dubai:-