Every firm in Dubai is important to obtain a trade license to conduct business. This license typically lasts a year and requires annual renewal. The licensing procedure for trade licenses in Dubai comes from the Department of Economic Development (DED).
The renewal of a trade license in Dubai is a complex procedure that requires special care and an abundance of paperwork. Despite the red tape, avoiding or neglecting renewal can result in your company facing fines and even bans from the region. Before proceeding with license renewal, it’s necessary to understand the various types of licenses by the DED in Dubai.
Types of Trade Licenses
A valid trade license in Dubai allows an entrepreneur to lawfully carry out commercial operations that defines within the license. In the UAE, engaging in any process without a valid trade license is illegal.
To begin operations, any business activity that involves the sale of tangible products must apply for a commercial license.
Professional services are those that demand specific expertise that is exchanges for a price.
Any business that handles the production of products, commodities, or goods falls under the industrial license, and every manufacturing or industrial firm requires an industrial license to operate.
Essential Documents For Renewing Trade License
Some of the documents that you need to have prepared and handy when renewing your trade license application are:
· Passport copies
· Certificate of Ejari Registration
· Tenancy Contract
· BR/1 form (typed)
· a copy of your current Trade license
· Audit Reports
There may be additional need of extra documents depending on your business activity and which free zones you operate within.
Process To Renew The Trade License
If you hope to run a business in Dubai, you’ll need a solid understanding of the regulations surrounding trade license renewal. The majority of people in Dubai are unaware of the ins and outs of business operations especially aspects as complicated as business licensing regulations. This blog will provide insight into the requirements for renewing your trade license so you can keep your business running smoothly.
You Require Valid Tenancy Contract
First, you need to check the validity of your tenancy contract before applying for renewal. Make sure to acquire an attestation from the Ejari. The tenancy contract will need to have been valid for at least three months to apply for license renewal.
Before submitting the license renewal application, you must get all necessary approvals from all relevant agencies. You will want to make certain you’ve collected all the appropriate documentation to avoid rejection and wasted effort.
Apply For License Renewal
From there, you’ll need to apply for a license renewal at Dubai’s Department of Economic Development. Thus, Deliver the Tenancy Agreement, Ejari attestation, business partner’s passport, fully completed application form, and all other supporting papers to DED.
Accept Payment Voucher
DED issues a payment voucher after validating the license renewal application and any other supplied documentation.
License Renewal Payment
Use the payment voucher to make the payment for the trade license renewal. After the payment completes, the DED will issue the renewal license. Other venues for trade license renewal, such as registered service centres or mobile applications, are available as well.
Companies must renew their licenses regularly and in a timely fashion to avoid penalties that can damage their entire business. Trade licenses are a requirement for any firm to operate, which is why many companies create a job position expressly for this function. Outsourcing these operations is one of the most frequent trends since it ensures that the task is accomplished with care and refreshed in a timely manner.
As a result Average entrepreneurs and businessmen might find the license renewal application process troublesome to navigate. Because the process has a time limit, businesses must take special care to complete all the steps before the deadline. As a result, it can significantly benefit a company to invest in either outsourcing the job or hiring a representative to handle trade licenses and regular due diligence processes.