Your Dubai LLC’s license must be properly renewed after a certain period. It’s a fundamental rule that every business with its main office in Dubai or any other city within the United Arab Emirates must renew its official business license annually. This license is a legally recognized document that permits businesses to conduct trade or provide essential services.
The business’s official records list the activities the company is authorized to engage in. These business activities and operations must comply with the UAE’s regulations. To ensure a smooth renewal process for your business license, it’s essential to prepare several key documents:
- Passports: Copies of each partner’s passport are required. A copy of your passport is sufficient if you’re the sole owner.
- Trade License Copy: You need a copy of your previous trade license to demonstrate lawful business operation in the UAE over the past year(s).
- Ejari Lease Agreement: Ensure you possess a current Ejari lease agreement valid for at least one month. The agreement must be Ejari-approved.
- Ejari Registration Certificate: This certificate validates your lease agreement and is crucial for renewing your business license to avoid penalties.
- BR/1 Form: Complete the BR/1 form and have all partners sign it to finalize the license renewal. Ensure all required documents are attached before submission.
- Submission: Submit the form and documents to the Department of Economic Development (DED) online or in person, as per your preference. Government officials will manage the renewal process after that.
Renewal of a Mainland Company’s Trade License
Renewing a trade license for a mainland-based company can be challenging due to the requirement for approvals from multiple government bodies besides the Department of Economic Development (DED). Typically, the required documents include:
- Copy of the current trade license, lease agreement, and Ejari Certificate.
- Additional documentation may be needed to obtain approvals from other agencies, depending on your business activities.
- The standard renewal process for a trade license usually takes one to two working days.
- If permissions from external agencies are required, the renewal process may extend to up to seven working days.
Renewal of a Trade License for a Free Zone Company
Renewing a trade license within a free zone varies depending on the chosen package and the specific regulations of the free zone. Here are the essential documents typically required for the renewal process:
- Trade License: Depending on the free zone, you may need either copies or the original document of the trade license.
- Audit Report: Some free zones necessitate an audit report as part of the renewal process.
- O. Box Confirmation: Confirmation of the renewal of the P.O. Box is essential.
- Passport Copy: A copy of the shareholder’s passport is required.
- Additional Documents: Additional paperwork may be necessary based on the specific free zone requirements and your business history.
The following is the Dubai application process for a general trading license:
To ensure your business is officially registered and operated in the UAE while maintaining a unique identity, follow these steps:
- Select a Business Name: Choose a name that adheres to UAE regulations and is distinctive to your business.
- Outline Business Activities: Detail up to 10 activities your business will engage in. This list must be included in your application to the Department of Economic Development (DED).
- Application Process: Complete the application form and submit it along with the required documents for verification.
- Verification and Approval: Your application will undergo review. In some cases, additional documentation or clarifications may be requested, potentially extending the approval timeline.
- Ejari Registration: Provide Ejari registration evidence to verify your business location.
- Payment of Fees: Complete the process by paying the applicable licensing fees.
- Choose Operating Zone: Decide whether to operate within a free zone or on the mainland of Dubai. If operating in a free zone, registration with DED is required for license approval.
Verify Again That All of Your Legal Documentation Is in Order
Businesses operating on the mainland must adhere to specific requirements when renewing their business permit. Here are the key steps to follow:
- Signed Lease Agreement: Ensure you have a signed lease agreement that remains valid for at least one month after submitting your renewal application.
- BR/1 Form: Complete the BR/1 form in full. This form is essential for processing your business permit renewal.
- Timing of Lease Agreement: Your current business permit should have an expiration date that is at least three months after the lease agreement is signed. It’s advisable to review and finalize your lease agreement well in advance of your permit’s expiration date.
- Early Renewal Preparation: To avoid any last-minute issues, it’s recommended to finalize your lease agreement before your business permit approaches its expiration date.
Send in Your Application for Renewal
To proceed with renewing your company’s license, follow these steps:
- Prepare Ejari or Rental Agreement: Assemble and create the Ejari or rental agreement. Ensure it includes any necessary permissions from third parties relevant to your business operations.
- Latest Trade License: Obtain a recent copy of your trade license from Dubai or the relevant Emirate where your business operates.
- Submission Options: You can submit your documents at the nearest Tasheel or the Department of Economic Development (DED) office. Alternatively, if you have an online account for your company, you can submit your renewal application online. Ensure all documents in the system are up to date for online processing.
- Paper Renewal: If revisions are needed for the Ejari or if there are outstanding approval criteria from third parties, the regulatory authority may require a paper renewal request submitted at a DED center.
Check for and Accept the Necessary Renewal Payment Fees
After submitting your renewal request and receiving temporary approval, you will be issued a payment voucher. It’s crucial to handle this document carefully as it comprises several components.
- Review Charges: To understand all charges involved, assess the voucher thoroughly. You may have the opportunity to request reductions in certain fees, depending on eligibility.
- Market Fees Calculation: Parts of the voucher, such as market fees, are based on the assessed value of your current rental property. Verify these calculations to ensure accuracy.
- Employee Housing and Business Accommodations: Note specific sections designated for employee housing and accommodations for business associates. Ensure these details are correctly accounted for in the voucher.
If Your Trade License Is Not Renewed
You must have realized how vital a DED company renewal is in the United Arab Emirates. A trade license must be renewed yearly to do business as usual. Should you put off the process, there will be dire repercussions.
Penalties & Fines:
The DED will impose sanctions on you. If a firm run without renewing its trade license, it may be subject to a fine of AED 5,000. Trading even after the permit expires may result in a $250 monthly fee for the traders.
Conclusion
The procedure for renewing a trade license in Dubai may require some clarification. Remember that timely renewal is an investment in your company’s survival and will help you succeed in the emirate’s competitive market rather than just something you must do by law. Renewing a commercial license in Dubai is a necessary stage in the continuous cycle of development and prosperity rather than a barrier. Having an aspirational mentality, being well-prepared, and having expertise can ensure your business thrives in the busy city center.