A businessman/ investor/ entrepreneur needs to acquire a trade license in Dubai in order to undertake all sort of trading activities. This particular type of license is approved and issued by the Department of Economic Development (DED) after the submission of application for the same along with the required documents. Once you have received the license you are free to conduct your business. But the story does not end there.
It is important to keep your trade license valid and active. For this reason, it is extremely crucial to renew your trade license annually. The process of renewing your trade license is comparatively simpler than the actual license acquiring process but needs a wee bit more extensive documentation. Before knowing the how let us look at the why.
Why do you need to renew your trade license?
As per the government rules, you must renew your trade license annually, else:
- Penalties and fines
- Business blacklisted, i.e., banned from operating
- Company banned: this is more permanent as company cannot be re-established once banned.
Important dates to remember:
The submission date for applying for renewal is before 30 days of expiry of original license. The renewal date can be checked online. It is also mentioned in the original license. Failing to do so would mean that you would have to pay a late fee every month along with any additional fines.
Grace period after expiry is 30 days after which one would have to pay monthly penalty .
The documents required to be submitted for trade license renewal are:
- Photocopy of original trade license
- Photocopies of passports of all existing partners
- Visa copy of all the existing partners
The documents can be submitted offline or online as per your convenience.
Who do you apply to in order to renew your trade license?
- If your business is in Dubai Mainland, the Department of Economic Development is the authority that is responsible for authorization of trade license renewal.
- If your company is registered in a Dubai free zone, the free economic zone authority would be responsible for the authorization of the renewal.
Once all required documentation is submitted and verified by DED, they send the payment voucher. Then all one needs to do is make the payment and complete registration. The cost of trade license renewal will depend on the size of the business and the type of set-up. It should be approximately between 8000 to 15000AED.
The process of renewing your trade license is not too complicated but might feel daunting without the guidance from a reliable partner. Flyingcolour Business setup services has been helping clients form companies and keep them operating well since the past 17 years. We can help you set up your new business with ease. Please feel free to mail your queries at firstname.lastname@example.org or contact us at +971 4 4542366.