How Can I Renew my Business License in Ajman?

by Zaara 28, Apr 2021

Every business established comes with the legal formalities, which are necessary to fulfill on time. One of the significant business rules and procedures that makes your company legal in the eyes of the law is to get a business license from Ajman's Department of Economic Development. Apart from having a business license, renewing a business license at the proper time is also very necessary.

Every business setup in Ajman should have a trade license from the Department of Economic Development (DED) authority. The authority permits only those who have their trading license to set up a business in Ajman; without a trading license, carrying out business is illegal in Ajman and is subject to penalty.

Every company formed in Ajman is required to renew their business license every year.  The licenses are a legal agreement that allows companies to participate in enterprise-specific business activities.

Types of Business License in Ajman

The following are the types of licenses which are a necessary prerequisite for all business activities at Ajman:

Specific individual licenses like Business Event license, Entrepreneurial Company License, etc. are issued by the Authorities according to the specific criteria.

Documents Required for a Trade License Renewal

  • Form for Renewal of Commercial License.
  • Copies of original passports of the individuals concerned.
  • Copies of The UAE ID Card of the people concerned.
  • Copies of the Ids of Family Members.
  • A copy of the Government signed a binding lease contract.
  • Any letter of complaint from the relevant authorities if the operation cannot be carried out except with authorization from the authorities concerned.
  • A copy of the signature verification certified by the Notary Public.

Conditions Applied For Trade Renewal

There are some conditions applied to the trade renewal procedure;

Offline Documents Condition

  • In case the license expiry date is longer than three months, you must undertake it in the Department of Economic Development through Inspection Section.
  • The Manager or a legally approved representative will submit the license application form.
  • If the license is a branch of Ajman’s Emirate or any Emirates, a valid copy of the parent business's license is connected.
  • The license certificate shall be renewed at the Ministry of Economics if it is a branch of a multinational corporation.

Electronics Documents Condition

  • The documents are available in PDF format.
  • The copy must be transparent and accurate in color format.
  • The articles shall be labeled.
  • The report size averages 70 Kbytes.

Procedure for Trade License Renewal

The procedure for renewing a business license is more comfortable than the trade license registration process. The measures for renewing a trade license are set out below:

Step 1: The lease contract with a period of at least one month is one of the essential documents in the renewal of the trade license. Cannot apply for a trade license without a rental lease. Therefore, the business needs to ensure that Ejari has a period of 1 month for the renewal to provide the attested contract.

Stage 2: The licensing authority in Dubai is the Department of Economic Growth. Both documents are also to be submitted to DED. You may also employ a consulting company here to get the license accepted successfully.

Stage 3: The DED then issues a payment voucher on the successful submission of all the primary documentation that the company owners are required to pay. The license will be based on this charge and will be given to business owners.

Penalties Enforced If You Neglect To Renew The Business License

Monetary Penalties

  • When a licensed business ends, the DED in Ajman can enforce a business with several forfeits.
  • An AED 5000 business that operates without a license may be penalized.
  • When a business operates an additional office space without authorization for an existing license, it is constrained.
  • When a business fails to renew a license within the specified time-limit could cost AED 250/month.
  • An expired trade license can lead to the fining of your business. Any default or delay in payment can also result in fines for the company concerned. The fines begin to build up immediately after the expiry date.
  • Business continuation without renewal of the business license will result in the company being blacklisted by the respective authority. In such a scenario, the organization must cease all operations, and sponsors, which will invalidate the visas enlisted under the business name. The business extension may also be limited if the license renewal does not take place within the period specified.

Black Listing of the License

If the company continues its business without renewal, it can result in the company being blacklisted by the respective authority and would halt all its activities. Sponsors and the visas enrolled under the business name can be made null and void.

Restriction on business growth

Organizations with a license expired are not permitted to extend their business activities. Businesses need to have a clear record if extension plans are in place.

A license expired will destroy the business

Ensure you know the expiry date and work to get it extended before the expiration, if possible. This way, your license will remain valid, or your company will eventually fail, and you could potentially lose everything.

Online Trade License Renewal Process

DED has recently unveiled online portals where businesses can renew electronic trade licenses; however, this allows owners of the company to set up accounts before the renewal. The company's owners can create an online account at DED only by submitting private documentation. The site also allows owners to make an online payment, but it should be noted that the approved payment account must be under the online site/company owner's name.

Challenges Faced During The Process

When Ajman’s business license is delayed or not extended, the company will have to pay the fine and may even be blacklisted. It could also ruin the company's plans to set up its business in the area in the future. Therefore, many entrepreneurs believe it is a more secure and safer choice to nominate an Ajman’s expert service provider.

When the records are not in the appropriate order, it can take more time to obtain a business license. All the papers need to be arranged in proper order. Different government departments can be grueling as running around; many company owners find this job easier to outsource.


The DED has made the license renewal process fast and straightforward by offering three ways to renew the license for trade. These are online as well as offline, as are automated routes. Given DED 's numerous attempts to make the licensing process quick and convenient, this is a process whereby the entrepreneurs and business owners fall behind. The approval is denied due to specific errors. It is here that Commitbiz comes into the frame. Our experts support business owners by managing all the legal paperwork needed to obtain a license and to renew the same. Our services allow entrepreneurs to concentrate on the essential tasks rather than getting caught in the formalities of paperwork. Please contact us if you have any queries. We 're glad to be involved.