Trade License Renewal Online - How to Renew Trade License in Dubai?

A trade license is a legal document required to establish a business in Dubai Mainland. Businesses must renew their trade license annually to comply with Department of Economic and Tourism (DET) regulations. Trade license renewal online can be completed through DED by submitting documents and paying fees after verifying your tenancy contract. By delaying a trade license renewal in Dubai, you will face monetary penalties, a banning of the business license, or even business closure. To avoid these consequences, we have provided detailed steps to renew a trade license in Dubai in this informative guide.

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What is a Trade License in Dubai?

A Trade License in Dubai is an official document issued by the Department of Economic Development (DED) that authorises a business to operate within the Emirate. This license is mandatory for any entity wishing to conduct commercial activities, including trading, manufacturing, or professional services. It ensures that businesses comply with local regulations and standards. There are various types of trade licenses, such as commercial, industrial, and professional, and each fulfils different business activities. Obtaining a DED/trade license involves several steps, including selecting a business name, choosing an appropriate business activity, and fulfilling specific legal and regulatory requirements. The process is streamlined to encourage entrepreneurship and investment in Dubai's dynamic and rapidly growing economy.

Benefits of Trade License Renewal in Dubai

The following benefits you will get by trade license renewal online in Dubai.

• Maintaining Legal Compliance: A renewed license signifies your commitment to operating within the legal framework established by the Department of Economic Development (DED). This ensures your business avoids penalties and potential legal complications associated with expired licenses.
• Continued Operations: A valid trade license is essential for the uninterrupted operation of a business. Renewal allows businesses to maintain their operations without any disruptions that could impact productivity and revenue.
• Reputation and Credibility: Regular renewal of the trade license enhances the business's reputation and credibility in the market, assuring clients, customers, and partners that the business is legitimate and follows regulatory standards.
• Access to Services: Many business services and facilities, such as banking, leasing properties, and signing contracts, require a valid trade license. Renewal ensures continued access to these essential services.
• Visa Eligibility: A renewed trade license is necessary for the renewal of residence visas for employees and their dependents, ensuring the workforce's stability and allowing businesses to retain talent.
• Growth and Expansion: Keeping the trade license up-to-date facilitates business growth and expansion, allowing the company to explore new opportunities, open new branches, and enter into new markets.
• Government Incentives and Support: Businesses with valid trade licenses can take advantage of various government incentives, support programs, and initiatives designed to foster business development and economic growth in Dubai.

Documents required for Trade license renewal Online in Dubai

Below, we have mentioned the necessary documents required for trade license renewal in Dubai.

1. Ejari Registration Certificate

A valid Ejari registration certificate is mandatory for DED trade license renewal. Issued by the Real Estate Regulatory Authority (RERA), this certificate verifies your tenancy contract for the business premises. Failing to possess a valid Ejari certificate can result in fines, so ensure it's up-to-date before applying for renewal.

2. Valid Tenancy Contract

Your tenancy contract, registered with Ejari, must have a minimum validity of one month or more when applying for license renewal. This ensures your business has a legitimate physical presence within Dubai. Ensure the contract is verified and approved by Ejari to avoid delays in processing your renewal request.

3. Copy of Existing DED License

A photocopy of your current DED trade license serves as proof of your existing business authorization. This document helps identify your business activity and verifies your previous licensing status.

4. BR/1 License Renewal Form

The BR/1 form is the official DED license renewal application form. Download it from the DED website and fill it out accurately with details about your business and the renewal request. Ensure all existing business partners complete and sign the form before submission.

5. Photocopies of Passports for Business Partners

Passport photocopies are required for all business partners involved in your company. If you operate as a sole proprietorship, submit a photocopy of your own passport. These copies verify the identities of the individuals associated with the business license.

Steps to renew a Trade license in Dubai

Here are the detailed step-by-step instructions to help you out for trade license renewal online in Dubai,

Step 1: Accessing the License Renewal Section

• Login to the DED eServices portal using your UAE Pass or DED account credentials.
• On the Business Dashboard page, locate the "My Transactions" section.
• Click on "Renew License" to initiate the renewal process.

Step 2: Specifying the License

• In the "License renewal information" section, enter the exact license number you wish to renew within the designated text box.
• Click the "Renew" button to proceed.

Step 3: Verifying Information and Uploading Documents

This step involves confirming the details of your license and uploading the necessary documents for renewal. The page will be divided into three sections:

Section 1 - License Renewal Information:

• This section displays key details of your license, including:
• Trade name (Arabic and English)
• License number
• Current expiration date (if already expired)
• Projected expiry date after renewal
• You may also have the option to update your contact information here. If your details need updating, a warning message might appear. Click the provided link to access the "update license contact" page.

Section 2 - Market Fee:

• Enter the RERA contract number for the premises where your business operates (business activity location).
• Click "Get rent amount from RERA" to automatically populate the market fee based on your registered contract.
• Important Note: If your contract isn't registered with RERA, you cannot proceed with the renewal process.

Section 3 - Attach Documents:

• This section allows you to upload the required documents for renewal. These documents can vary depending on your specific business activity.
• Use the "Apply for Renewal" button once you've uploaded all the necessary documents.

Step 4: Submission and Processing

• Once you click "Apply for Renewal," a DED employee will review your application and documents.
• If external parties need additional approvals, the DED will handle communication.
• Upon approval, you will receive a payment letter for the renewal fees.

Learn about: A Complete Guide to Mainland Company Formation

Cost for Trade License Renewal in Dubai

The cost associated with renewing your trade license in Dubai depends on several factors. These factors largely affect the renewal costs for trade licenses in Dubai.

• Legal Entity Type: The type of business structure you operate under, such as a sole proprietorship, limited liability company, or branch of a foreign company, can impact the renewal fee.
• Business Activity: The specific activities your company is licensed for will influence the cost.
• Jurisdiction and Economic Zone: The location of your business and the specific economic zone it operates within may have varying fees.
• Additional Approvals: Depending on your business activities, you may require additional permits or approvals from relevant authorities, which can add to the overall cost.

Penalties for not renewing the Trade license in Dubai

The following penalties and consequences you may face if you didn't fulfil the trade license renewal online in Dubai,

• Fines: Businesses can incur significant fines for operating with an expired trade license. These fines accumulate daily, increasing the financial burden the longer the license expires.
• Operational Restrictions: An expired trade license can restrict business operations. Authorities may prohibit the business from engaging in commercial activities, leading to operational disruptions.
• Legal Actions: Continued non-compliance can result in legal actions against the business. The authorities may initiate proceedings that could lead to further penalties or legal complications.
• Blacklisting: The business may be blacklisted by the Department of Economic Development (DED), affecting its ability to obtain future licenses or renewals and potentially impacting the personal status of the business owners in the UAE.
• Freezing of Bank Accounts: Banks may freeze the business's accounts, preventing access to funds and financial services necessary for daily operations.
• Visa Issues: Without a valid trade license, the business cannot sponsor or renew residence visas for its employees and their dependents. This can lead to workforce instability and difficulties in retaining staff.
• Business Closure: In extreme cases, the authorities may order the closure of the business, forcing it to cease all activities until compliance is restored.
• Reputation Damage: The business's reputation can suffer significantly, affecting relationships with clients, customers, and partners. An expired license signals non-compliance and can undermine trust and credibility.

Conclusion

Renewing your trade license in Dubai mainland is a critical annual requirement to maintain legal compliance and avoid severe penalties, such as fines, operational restrictions, or business closure. This guide outlines the necessary steps and documents for the trade license renewal online process, ensuring businesses comply with the Department of Economic and Tourism (DET) regulations. Timely renewal prevents legal and operational issues and supports continued business operations, credibility, and access to essential services.

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