Renewing Trade License in Dubai

Dubai is a lucrative business market filled with opportunities for business setup in the UAE. Though we do agree that some regulations are rigidly placed, we cannot deny that it is because of the strict implementation of the rules that Dubai happens to be one of the most disciplined and well-regulated business destinations on the planet. The government maintains a highly protected yet massive database of businesses that operate in the Alpha Emirate of Dubai. The legal authorities monitor them from time to time, ensuring there are no defaulters or fraudulent activities, and business is carried out smoothly in a decorated fashion.

Importance of Licensing in Dubai

Licensing renewal is a core administrative activity that every business must go through to be legally permitted to conduct corporate operations within a regional jurisdiction. As in the case of Dubai, the business license carries validity for one year and must be renewed on a timely basis annually. The failure to do so will allow the Department of Economic Development (DED), Dubai, to penalize the business or in the worst-case scenario, even freeze the business activities of the company or ban the company from operating in the market. The Department strictly monitors all the corporate entities in Dubai; therefore, license renewal must be taken very seriously when doing business in Dubai. The three types of business licenses in Dubai are –

  • Commercial License
  • Professional License
  • Industrial License

Steps to Renew Business/Trade License in Dubai

1. Applicant must Review Tenancy Contract

The tenancy contract of the applicant must be valid for not less than three months from the application date for license renewal. If the tenancy contract is due during the renewal process, then the applicant must first renew Tenancy contract in order to be valid for acquiring a Business License in Dubai. The tenancy contracts can be applied for via EJARI - an online registration system initiated by Real Estate Regulatory Agency (RERA) that requires all Dubai rental or lease contracts to be recorded at this portal. The main motive behind this system is to legalize the otherwise unpleasant relationship between landlords and tenants in Dubai.

2. Acquire Permits and Approvals concerning your Business

Business in Dubai is also governed by several agencies and municipal bodies who provide permits to firms depending on the type of the business. If the company is a transit or logistics-based business, then applicants must approach the Road Transport Authority. And if it is a restaurant or food manufacturing business, then the permission of the Food Safety Department is mandatory. Therefore, depending on the type of the business, various permits and licenses must be acquired and submitted to the DED for renewal of the business license in Dubai.

3. Submit Documents to DED

During the submission of the documents, kindly review if the following needs have been met before submission -

  • Tenancy Contract (valid for not less than three months)
  • EJARI Attestation
  • Typed Renewal Form to the DED in Dubai
  • Duly Filled BR/1 Form
  • Photographs and Passport copies of all the business partners
  • Copy of existing Business license

4. Acquire Transaction Number or Payment Voucher from DED and Make Payments for Renewal

After submission and verification of the documents, the DED provides applicants with a unique Transaction Number which is also known as a ‘Payment Voucher’. This number is a unique reference number which is valid only until the renewal process is complete. Thus, it is limited only to the duration of the current process and does not sustain validity for the next renewal period.

Make the necessary payments for renewal of trade license using the Transaction Number or Payment Voucher. Applicants must remember to initiate the entire process early before the expiry of the permit as late renewal at the last minute may lead to fines being levied on the corporate entity.

Commitbiz is Here to Help

The Department Economic Development (DED) tries to simplify the procedure through offline, online and auto-renewal system to cope up with the changing regulations and policies. But many new business owners find it hectic to manage these administrative activities on their own. Tackling administrative activities is time-consuming and does not allow business owners to focus on core business activities.

That's where Commitbiz smoothens the gap by providing tailor-made services to our clients since the past 15 years in the UAE market. We have assisted many companies to set up business in the UAE. Our services also include legal services, accounting and bookkeeping, nominee director services and corporate consulting. Contact us to start your entrepreneurial journey in Dubai.