As a foreign investor to set up a company in Dubai, the renewal of trade license is a crucial process that you need to be concerned about. Dubai is an attractive investment destination with a rapidly growing economy, favourable trade policies, strategic location, and growing markets. Due to these factors, a vast number of foreign investors with diverse business ideas, budgets, and specializations flock to the “city of gold” to establish and expand their ventures profitably.

When setting up a business in Dubai, it is crucial to obtain a valid trade license to conduct trading activities. To avoid violating any norms, this license needs to be renewed annually. The Department of Economic Development (DED) in the UAE is responsible for managing the trade license renewal process. Although the procedure for DED license renewal may seem complicated, it must be handled diligently with the help of a reliable consultation agency.

Read Also This – A Comprehensive Guide on VAT Registration Services in Dubai

It is essential to bear in mind that a trade license serves as proof of the legal status of your business in Dubai. As such, it is vital to follow the proper Dubai trade license renewal process to avoid facing penalties, legal proceedings, or even a ban on your business.

To ensure that you can continue with your business operations without any disruptions, it is advisable to begin the renewal process a few days before your trade license expires. This includes understanding the application details and the costs associated with DED license renewal fees.

This blog aims to provide you with all the necessary information you need to renew your trade license successfully. By following the recommended steps and procedures, you can maintain your business’s legal status in Dubai and continue to sell your products both locally and globally.

Now, let us take a look at necessary documents required for this process-

To ensure a smooth and hassle-free renewal process of your trade license in Dubai, it is crucial to prepare all the necessary documents beforehand.

1. The Contract for Tenants

One of the essential documents that you must have readily available is a tenancy contract. Your tenancy contract must be valid for at least one month in Dubai and confirmed by Ejari. Therefore, it is essential to check the validity of your tenancy contract before applying for the trade license renewal. Failing to get the contract attested by Ejari may result in your trade license renewal application being rejected due to legal obligations. The Ejari attestation of your tenancy contract is a legal requirement in Dubai and serves as proof that your property is registered under the Dubai Land Department.

This is a critical step in ensuring that your trade license renewal process is completed without any hurdles. Additionally, having an updated tenancy contract will also help you avoid any legal complications that may arise during the renewal process. Overall, preparing and submitting the necessary documents for your trade license renewal in Dubai is a crucial step in maintaining the legal status of your business. Ensuring that your tenancy contract is valid and attested by Ejari will help you navigate through the renewal process smoothly and without any issues.

2. The Old Trade License

When applying for a trade license renewal, it is mandatory to present a supporting document such as your old trade License. However, it is not necessary to provide the original document, and a copy of the old trade license will suffice. Hence, it is crucial to keep a copy of your old trade license handy and submit it during the renewal process. It is also advisable to make sure that the copy is clear, legible, and updated to ensure a smooth renewal process for a company setup in Dubai.

3. Business Registration form

The BR/1 form is a document that is required for business registration and must be filled out accurately and submitted to the Department of Economic Development (DED) for approval to initiate the renewal process. One important requirement when filling out the BR/1 form is to ensure that all business partners sign it. This is a critical step in the renewal process, as signatures from all partners indicate their agreement to the renewal and their commitment to the business. However, it is mandatory to submit the form before the license expiration date.

4. A copy of the passport of Shareholders

For a company set up in Dubai, as a part of the trade license renewal process in Dubai, it is mandatory to submit a photocopy of the passport of business partners along with your application. This requirement is necessary to provide a proof of the stakeholders involved in your business. However, in case you are the only stakeholder in your business, this step can be omitted.

Additionally, it is crucial to ensure that the passport is valid and has not expired. An expired passport may lead to rejection of the renewal application. Therefore, it is advisable to check the validity of the passport before submitting the photocopy with the renewal application.

Take a note of the necessary procedures involved in a Trade License Renewal –

Renewing your trade license in Dubai is an essential process that helps you maintain the legal status of your business and avoid any legal complications or a ban on your business operations in the UAE. Therefore, it is crucial to carry out the renewal process diligently and with care.

1. Ensure that you have all the essential documents

Gathering the required documents is the first crucial step in the process of DED license renewal. It is essential to ensure that you have all the relevant copies as well as the original documents handy before starting the renewal process. This will save you time and avoid any delays in the renewal process. Make sure that you have a valid tenancy contract, a copy of your old trade license, and passport photocopies of all partners involved in your business. This will help you carry out the renewal process smoothly for a company setup and avoid any delays or rejection of your renewal application.

2. Fill the forms carefully

The subsequent step is to fill the business registration or BR/1 form duly signed by all the stakeholders. It is essential to remember that the renewal process must be initiated before the expiration of your existing trade license. Late submissions are subject to penalties and may even result in the cancellation of your trade license. Hence, it is always better to begin the renewal process a few days in advance to avoid any last-minute hassles.

3. Obtaining your Payment Token and paying the appropriate amount

Once your documents are verified and approved, you will receive a payment token from the Department of Economic Development (DED) to pay for the Dubai general trading license fee. This token is used to make the payment for the license renewal fee, and you must ensure that you pay the fee within the specified time limit to avoid any delays or additional charges. You can check the exact fee amount for your business type on the DED website or by contacting a consultation agency. The payment can be made online, through a bank transfer or by visiting the DED office in person.

The Trade License Renewal Fee

The DED license renewal fee in Dubai varies depending on several factors such as the type of license, nature of business, and industry. The fee range for a standard license is generally between AED 8,000 to AED 15,000, and this fee includes a service charge and local service agent charge. It’s essential to note that the fee may change based on the government’s regulations and policies, so it’s always best to keep yourself updated.

If you are operating your business in a Free Zone in Dubai, the process for Free Zone trade license renewal may differ slightly from the one for businesses outside of the Free Zones. In most cases, you will need to contact your Free Zone authority with your current trade license and a no-objection certification if applicable. They will guide you through the process of renewing your trade license in the Free Zone.

Additionally, you can also seek assistance from a reliable business setup agency such as the white worth to handle the renewal process on your behalf. They have the necessary expertise and experience to help you with all the paperwork and procedures, ensuring a smooth and hassle-free trade license renewal process in Dubai’s Free Zones.