UAE is the world’s most popular business destination, and many multinational companies are establishing their offices in the country. Every company established in UAE will have a Trade License for their business. The Trade License is an important legal document that defines the existence of a company in the UAE. The trade license renewal is a yearly process for the investor to continue the business operations in the country.
The strategic advantage of being in the midpoint of the East and the West, attractive tax benefits, complete foreign ownership, etc., makes it a favorite choice for establishing a business. This blog highlights the steps to renew a trade license in UAE Mainland and Free Zones. Also, the implications for the company if they are not renewing the Trade license in UAE. The Trade License renewal is an essential procedure for all companies operating in the UAE.
The steps to renew the Trade license for a company operating in the Mainland and Free Zone are almost similar. However, they vary in a few procedures.
The licensing authority in the Dubai Mainland is Dubai Economy, and in other emirates, it the respective Department of Economic Development (DED). Similarly, the Free Zones is the specific Free Zone authority that will issue the new Trade License.
Trade License Renewal in UAE – Steps Explained
The company owner in UAE must renew their Trade License yearly. Trade License renewal has a few connected steps to follow. Here are the steps to renew your Trade license for a Mainland Company in Dubai.
1. Validity of Tenancy Contract ( Ejari)
Validity of the tenancy contract or office space Ejari is an important aspect of Trade License renewal in Dubai.
The tenancy contract for the office must be valid for at least one month. Else first, renew the Ejari, and then the company owner will have to proceed with the trade license renewal.
2. Application to Dubai Economy
To renew the trade license in Dubai, the business owner must submit the duly filled-in application form and provide the supporting documents. The Dubai Economy will review the application and provide a status on the progress of the trade license application.
3. Payment Voucher
After the approval of the trade license, the licensing authority will send the payment voucher for the new trade license to the registered email. The business owner can initiate the payment accordingly.
4. Payment Initiation
The Company Owner must initiate the payment, and upon receipt of the payment, the DED authority will send the Trade License copy via email and hard copy by courier.
AURION will coordinate with the Licensing Authority in all stages of the Trade License renewal process and ensure you receive the company license copy at the earliest.
Documents required for Trade license Renewal in Dubai
There are a few documents to submit for renewing the Trade License in Dubai. AURION will guide the company owners to arrange for the right set of documents to renew the trade license at the earliest.
1. Valid Ejari Registration Certificate
For the renewal of the Trade License in the Dubai Mainland, it requires a valid registration certificate from the Dubai Land Department. The office space must have the approval of the Ejari from the Dubai Land Department.
2. Valid Tenancy Contract
The validity of the tenancy contract for the office space is important. It should have at least one month of validity when applying for the trade license renewal. The Tenancy Contract is a legal document bounding you and the landlord of the building where your office space is located.
Register the Tenancy Contract with Ejari to obtain the valid Ejari Registration Certificate. Aurion’s PRO Agents will coordinate in preparing the tenancy agreement and facilitate the Ejari registration process so that business owners can focus on their core business operations.
3. Copy of Previous Trade License
Submit a copy of the previous Trade License during the process of applying for the Trade License renewal. Along with the other documents, a copy of the previous trade license must be provided to the Dubai Economy authorities for review.
4. Application Form for Trade License Renewal
The Trade License renewal form must be filled and signed by all the shareholders. Then it must be submitted to the Trade License issuing authority. All the supporting documents must be provided along with the Application form while submitting to the DED authorities.
5. Passport Copy of all Shareholders
The shareholder passport copy must be attached along with the application form and other documents while submitting the file to the Dubai Economy.
What Is the Cost to Renew a Trade License in UAE?
In Dubai Mainland, the cost to renew a Trade License varies between AED 8,000 to AED 15,000, depending on the business license type. For the general Trading License category, the Trade License fee is in the AED 15,000 range.
The Cost of Trade License renewal in a Free Zone depends on the respective Free Zone authority, the type of business license, office space, etc. However, the Trade License renewal in Free Zones of UAE also starts at approx AED 8,000 for a virtual office license, and as the visa quota goes up, the annual trade license renewal fee also increases accordingly.
Trade License Renewal in Free Zones of UAE
The Trade License renewal in the Free Zones of UAE follows a similar process to the Mainland of UAE. However, there is no EJari registration requirement if the office space is inside the Free Zone.
The Tenancy Contract will have the Free Zone as the owner of the space; depending on the office space, the rent must be paid in full or in instalments for the next year, and renew the tenancy contract.
Similarly, the Trade License fee (depending on the number of visas) must be paid to renew the Trade License for the next year. The application for the Free Zone Trade License renewal can be processed online with the help of registered Business Consultants such as AURION.
The shareholder details, passport copy, previous trade license copy, tenancy contract, and Trade license renewal application form must be submitted for approval to the specific Free Zone authority.
Followed by the initial approval, the License renewal fee must be paid to obtain the renewed Trade license from the Free Zones of UAE.
Why should I renew my Trade License in UAE?
Renewing Trade License in UAE is a mandatory process as otherwise, it will attract heavy fines and stoppage of business activities for the business owner. In UAE, one cannot conduct any business operations with an expired trade license.
Hence, it is important to keep track of the Tenancy Contract, Ejari Registration Certificate, and Trade License expiry date. Expert Business Consultants at AURION will handle all the company renewal processes with precision.
Business owners who fail to renew their trade license will have to face blacklisting of business by banks, suppliers, and government authorities. Also, it could even lead to a ban on shareholders. The Dubai Economy or Department of Economic Development authorities can any time inspect and close down your company if you are operating using an expired trade license.
Hence, to avoid any roadblocks to smooth business operations in UAE, always keep an eye on Trade License renewal dates. Connect with our expert Professionals to log your company into our database, and we will send your timely reminders for renewals and handle all your company’s administrative requirements.
To know more details about Trade License renewal in UAE, give us a call or write to us.
Contact Us: Aurion Business Consultants