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If you are operating in Dubai with an expired trade license, you could be in a lot of trouble. The repercussions might lead multiple negative outcomes like your operations being seized immediately, fines up to AED 5,000, monthly penalties of AED 250 (in addition to the monthly fees), freezing of visas, and losing income. To avoid these negative outcomes, you must renew you trade license.
While many businesses are aware that renewing the trade license in Dubai is a crucial aspect of operating their business, a key challenge is to understand what is required. Studies show that majority of business owners are unaware of the process, which include documents required.
This guide provides information on the procedures, a checklist of items to keep in mind, the cost of renewal, and any changes to the process due to new regulations.
You can update your trade license during renewal process. Common changes include:
The UAE government has introduced some amendments to simplify licensing. Here’s what’s new:
The core documents required for trade license renewal in Dubai are mentioned below:
Mainland (Department of Economy & Tourism)
Free Zone
Some zones require:
Additional documents according to the license type:
| Type of License | Documents required |
|---|---|
| Commercial License | Ejari, Any external approvals (if applicable) |
| Professional License | Ejari, Local Service Agent agreement (if applicable), Updated professional approvals (if expired) |
| Industrial License | Ejari, Civil Defence Approval |
| Tourism/ Special Activities | Ejari, Renewed approval from DTCM or relevant authority, Insurance (for some tourism activities) |
In the application of renewal of Trade License, Ejari (tenancy contract) is very important. It should have a validity of at least a month remaining. If Ejari is not available, the Trade License might get reject.
Companies in Free Zones may require a NOC (No Objection Certificate) from their respective Free Zone authority. If your company has any dues pending for use of the facilities, ensure to clear them before applying for the renewal of Trade License.
Some businesses require additional approvals according to their respective business activities.
For example, if your business involves the sales of chemicals, you will need special permission from Dubai Narcotics Department. Businesses that are into healthcare need permission of the Ministry of Health and Prevention.
The steps to renew trade license are:
The approximate cost to renew the trade license in Dubai is:
| License and Jurisdiction Type | Renewal Cost |
|---|---|
| Mainland Professional | AED 6,000 – 8,000+ |
| Mainland Commercial | AED 7,000 – 9,000 |
| Mainland Industrial | AED 9,000 – 12,000+ |
| General Trading | AED 8,000 -10,000+ |
| Free Zone | AED 8,000 – 30,000 |
The penalties of not renewing the trade license are as follows:
It is the good practice to renew your Trade License on annual basis before the expiry date. This will protect your business from shutdowns, and large fines among others. It will also ensure that your employees are secure in a safe working environment.
The government has made it easy for businesses to renew their trade license on time, just ensure that you have the right documentation and visit the official website prepared.
Oftentimes the official portal doesn’t work, it’s better to submit the application ahead of time to avoid last minute surprises. If you’re not sure how the process of renewing a trade license in Dubai works, contact our UAE experts at Stratrich Consulting to make the process straightforward.