What is Trade License in Dubai:
Every business that has been set up in Dubai will get a trade license which is valid only for a period of one year. Hence it becomes mandatory to renew the license every year at least one month prior to the expiry of the same. Dubai trade licenses need to be renewed every year in order to avoid any kind of fines and performing business having an expired license may invite in getting fines accumulated on the company.
As per the Dubai Economic Department, a trade license is a legal certificate that enhances an Investor / a businessman to perform his/her business in Dubai. A license will consist of the details of activities they want to perform in their business and only these permitted activities can be performed by a company. Any person involved in other activities which are not mentioned in their license is illegal.
Steps to renew trade license in Dubai
- BR/1 Form Typing
- Obtain a valid Ejari – Renewed Tenancy Contract
- Apply for the renewal of the trade license in Dubai DED
- Final submission for the issuance of the renewed Dubai Trade License
Obtain a Valid Ejari or Tenancy Contract
One of the mandatory requirements for the Dubai trade license renewal is having a valid Ejari. An Ejari is issued by the landlord upon renewing the office tenancy. As the Dubai Economic Department has made the sustainability desk/desk space a legal aspect for the issuance of the license so any person renewing their license on a sustainability desk can provide the agreement between the landlord and tenant along with the Ejari for the office.
Apply for the renewal of the license
Once we have the valid Ejari then we will need to take initial approval from the Dubai Economic Department to obtain the application for the renewal of the trade license.
The charges for the tasheel fees to apply for the renewal of the license will be AED 210. If any person intends to change their location of the office at the time of renewal of the license in this case change of location also needs to be applied.
Final Submission for the issuance of the Renewal Dubai Trade License.
After obtaining the application for the renewal of the trade license then the final submission has to be done to the Dubai Economic Department for the issuance of the renewed license. At the time of final submission, a payment voucher will be generated based on the Govt. expenses and also 2.5% of the annual rent is calculated as market fees and added to the payment voucher.
Cost details for the renewal of Dubai Trade License for professional, Commercial & Indus trail Licenses.
|Tassel Fees for license renewal||210||210||210|
|Fees for Dubai DED|
|Government Cultural Fees||40||40||10|
|Innovation Dirham Fees||40||40||10|
|Fees for administrative service||50||50||50|
|Trade name advertise||350||350||350|
|Foreign company name fees||2000||2000||2000|
|Service Agent Fees||700|
|Fees for External Department|
|Licensing accommodation fees||500||1000||1000|
|Employees accommodation fees||1000||1000||1000|
|Public waste related service fees||2000||2000||2000|
|Service improvement fees||240||400||240|
|Fees For Dubai Municipality|
|Current year fees chamber||1200||1200|
|Fees for Dubai Chamber of Commerce|
|Ministry of Chamber of Commerce||508||200||3000|
|Fees for Dubai Civil Defense|
|Dubai Civil Defense Fees||200||1000|
|Fees for Tejari|
|Total Dubai Trade License Renewal Fees (AED)||
|Market Fees||2.5% of office/ shop annual rent||2.5% of office/ shop annual rent||2.5% of warehouse rent|
After making the payments as per the above fees, Dubai DED issued renewed Dubai trade license with a validity of one year.
The Dubai Economic Department has introduced the above 3 steps to renew the trade license – the renewal of the same can be done either manually by making a personal visit to the Economic Dept. or by applying the same online.
This blog post written by Ms Florine, Business advisor at Flyingcolour Business Setup in Dubai, emphasizes providing the best advisory and customer satisfaction to clients. Please send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.