Setting up any kind of business in the United Arab Emirates requires an entity to obtain a business license. This will allow you to conduct business in the jurisdiction without any worry.
When you decide to start a business in Dubai, one of the major requirements is having a trade license. When the license expires, every company in Dubai is required to renew their license on an annual basis. These licenses have validity and once the validity expires they need to be renewed.
The process of renewing the trade license is simple and straightforward and has a quick turnaround time for business owners. The value of time, energy, is a priority for the Department of Economic Development (DED), Dubai. However, let us first understand the different types of trade licenses available in Dubai.
Types of Trade License in Dubai
There are three major types of business licenses that are commonly used to conduct business in the UAE. They are-
A Commercial License is required by businesses that trade in certain goods and services. With this type of license, trading can be done within the confines of the jurisdiction and with many goods and services. This will also include the import and export of a number of goods and services to and from the country.
The Professional License is given to any individual or organisation which is based on any kind of talent, analytical or intellectual ability or any relevant experience. The holders of such a type of license include various professionals followed by people such as medical profession, dentistry, being a lawyer etc.
The Industrial License is provided to organisations that are into the activities such as manufacturing, production, collection, packaging and industrial activities.
If you possess any of the above-mentioned licenses, then on the expiration of any of these licenses you have to renew them annually. If a business is conducted without renewing the license then there can be huge complications for the business.
How to Renew Trade License in Dubai in 3 Steps?
In order to keep conducting the various business activities, the management needs to renew the trade license for the business on an annual basis. Renewing the license is a simple three-step process. The steps are:
1. Ensure Validity of the Tenancy Contract
It is essential to check whether your tenancy contract is valid for not less than three months from the application date. This is a crucial piece of information to be evaluated as at the time of renewing your trade license, the tenancy contract must be valid. In case the tenancy contract needs to be renewed, then the management needs to make sure that the Tenancy Contract is attested by the Real Estate Regulatory Authority (EJARI).
2. Get Activity-Specific Licensing Approvals
If you are starting your business in Dubai, there are a few activities for which you need approval from additional authorities. For example, a taxi service business needs approval from the Road and Transport Authority of Dubai; a restaurant needs consent from the Food and Safety Department, etc. It is vital to make sure you get these approvals before proceeding with the application. If your business is among those listed under, then you need to take permission from the Road and Transport Authority of Dubai (RTA).
Taxi Services (602201)
Luxury Motor Vehicles Services (602207)
Car Rental (711105)
Non-emergency transport services (602209)
Out Bound Tour Operator (630411)
In Bound Tour Operator (630412)
3. Apply for License Renewal
The final step is to apply for the license renewal. This can be done by filling in the application form and submitting the required documents to the DED Dubai. Once you apply, the DED will allot you a payment voucher. After you receive the coupon, proceed with making the payment. After the payment is made you will immediately receive your renewed business license.
What is the penalty amount for a trade license in Dubai?Auto-Renewal Services
Many a time, a business does not renew a business license. This can be a deliberate reason or an accidental one. Missing the deadline for renewal can be a fatal mistake for a business and this is why the DED Dubai has launched Auto-Renewal Service.
You can send an SMS with your license number to 6969. Renewal dues will be generated automatically, and a payment receipt will be sent to your mobile number. The client can pay online or offline through legitimate payment channels. DED will carry a print of the renewed license to the customer through SMS and a registered email address.
How can Commitbiz Help You?
The DED has provided three ways to renew your trade license, i.e., online, offline, and automatic renewal method, but even with so many efforts the new entrepreneurs may find the renewal process difficult and will require the assistance of professionals. This is where Commitbiz comes into the picture.
We at Commitbiz has the knowledge and experience to help you with the process of business license renewal in Dubai. Our services allow businesspersons to focus on the core areas of their industry. Whereas, we make sure smooth trade license renewal for their company at a nominal fee. For any information or query, feel free to Contact Us. We will be glad to be of assistance.
How can I renew my trade license via SMS?
You can send an SMS with your license number to 6969. A payment receipt will be sent to your mobile number. The client can pay online or offline through legitimate payment channels.
What happens if the license is not renewed?
This can be a huge mistake for the business and it will have to face severe penalties
What is the penalty amount for a trade license in Dubai?
What is the cost of renewing the trade license?
AED 8000- 15000
What is the grace period for the trade license in Dubai?