How to Renew Trade License in Dubai
It is a very important requirement for the business owner in Dubai or any businessman setting up his business. Trade license renewal Dubai will ensure that the running of the company is maintained. Renewing your trade license in Dubai may be a somewhat troublesome process. However, the right guidance will help it to be swift and easy. In this article, we’ll guide you through every step to renew your trade license.
Whether you are an entrepreneur, a representative from a corporate legal department, or a startup, knowing the process of trade license renewal Dubai is mandatory. So, let’s get started with the nitty-gritty.
What is a trade license in Dubai?
Dubai Economic Department (DED) officially issues trade licenses. These represent the right to conduct trade legally in Dubai. If you have a small business, you are a startup, or you run a big corporation, you cannot work without having a valid trade license.
The trade license is issued for one year. So, it has to be renewed each year. If not done so, heavy fines or penalties or even the closure of the business might be imposed on your company.
Why trade license renewal Dubai is Important?
The process of trade license renewal Dubai is very crucial to keep your business active and not suspended. Non-renewal of time could suspend you from license operations. It means you can run no business. Further, additional penalties include fines along with other legal procedures. Thus, the action taken on time with knowledge of deadlines is pretty crucial.
Whether you are a small company, an SME, or an e-commerce, renewing is the same procedure. Understanding how this process occurs will help in having as little of a delay as possible.
How to Renew Trade License in Dubai
1. Ensure You Have a Valid Tenancy Contract
Probably the most important thing you’ll need to have during the process of trade license renewal Dubai is the current tenancy contract. You should ensure that your tenancy contract stands valid for at least three months when you apply to have your license renewed. The Ejari system, which happens to be a government platform that registers rental contracts in Dubai, ought to attest to it.
Dubai Economic Department does not allow you to renew the licence without a valid tenancy contract. So you should ensure you verify this first before problems arise.
2. Online Renewal of Trade License
The Dubai Economic Department has made trade license renewal procedures simple to complete. One can apply for a trade license renewal via the DED’s e-services portal, as well as through apps like “DubaiNow.” This is the quickest way to do it, which should appeal to even the most hectic businessman.
Alternatively, you can walk into one of the DED service centres to apply there. You can also seek clarification from the business setup experts in Dubai in case you require clarification about the procedure.
3. Gather the Necessary Documents
The process for successfully applying for trade license renewal Dubai requires gathering some documents for the process. The required documents are:
- Copy of the current trade license
- Valid Ejari-attested tenancy contract
- Copies of the passport for all business partners.
- A renewal form filled out with proper details
If you chose the online application, then scan and submit these documents.
4. Payment of Application Fee
Once you have submitted the renewal application, you should pay the filing fees for renewal. Filing fees when one is renewing the registration vary depending on the kind of business or activity; however, it generally includes a sum under administrative fees and many more in the form of government charges.
If you want your computations to be clearer about the amount that you need to pay, you can ask for the assistance of Business Setup Experts DMCC, or other similar services.
5. Collect Your Renewed Trade License
Once you fill in everything and make the payment of the dues, your renewed trade license is ready for you. In most cases, it comes within days. After getting it, you can run your business with no disturbances.
Role of Dubai Economic Department in Renewal of Trade License
DED carries out the renewal of trade licenses. Be it a renewal of a trade license or one’s new venture, all happens through DED; thus, they always make sure that every firm, which trades in Dubai, toils according to the rule book and guidelines, making Dubai one of the best cities in the world to do business.
Most business owners in Dubai require business setup experts in Dubai to guide them through the process of DED. With the business setup experts, every step of the procedure is followed correctly. Moreover, a lot of time and, most importantly, costly mistakes do not happen.
Procedure for Free Zone Trade License Renewal
In free zones, the renewal process is different from mainland Dubai as each free zone has its own authority. If it is a free zone where your business operates, then you should get in touch with that free zone’s authority through which your business was registered.
For example, if you are running your business in the DMCC, that is the Dubai Multi Commodities Centre, then you will seek Business Setup Experts DMCC. They will ensure all paperwork is in place and guide you through the processing of renewal.
Trade License Renewal Abu Dhabi
If you are operating a business in Abu Dhabi, the procedure is roughly the same. However, the difference is that you will deal with the Abu Dhabi Department of Economic Development (ADDED) rather than the Dubai Economic Department.
For businesses in Abu Dhabi, rules for an Abu Dhabi trade license renewal are very important. Much like in Dubai, not renewing a business license in Abu Dhabi may result in fines and further business interruption.
This Dubai business setup or Abu Dhabi business setup can be of great aid in ensuring that all your renewal requirements on your trade license are satisfied, regardless of the city you are working from.
How About Renewing a Trade License Late?
Failure to renew your trade license within the due time frame can put you in a grave situation with very dire consequences. Heavy fines may even result in the cancellation of the trade license by the Dubai Economic Department, thus banning you from lawfully conducting business activities.
This is why prior to the deadline, it is important to work ahead. Since you are not aware of the deadline dates, you can consider seeking the services of business setup experts in Dubai so that they may assist you and remind you before your license renewal date expires.
Company formation and timely license renewal
The trade license renewal Dubai should be done on time, like the original process of formation of a company in Dubai. Taking care of keeping your business legally compliant and operational demands keen eyes on deadlines and keeping your documents up to date.
Of the many things they have to manage while setting up a new business, renewal is also not exempt. Hence, most new business owners seek professional advice from business setup experts in Dubai. They take care of company formation in Dubai. Also, they see that renewals are completed on time.
Tips for Smooth Trade License Renewal
- Start Early: Renew your trading license well in advance. Never wait for the eleventh hour. It is always advisable to begin this procedure much in advance.
- Check your documents: Ensure that all the paperwork, especially the tenancy contract, is valid and updated.
- Apply online: Online application through the portal of the Dubai Economic Department saves you effort and time.
- Consult business setup experts: In case one does not know anything about any part of the process, they must seek the advice of business setup experts in Dubai. They can avert errors which would worsen the situation and delay even more.
Conclusion
Trade license renewal Dubai does not have to be a daunting task. Understanding what is involved and keeping track of everything ensures the smooth finishing of the processes.
To make it even more effortless, business setup consultants in Dubai or Business Setup Experts DMCC may be of significant help to simplify everything from document gathering to submission. A startup, SME, or a company, trade license renewal is something that each business owner must deal with care in Dubai.