Ajman Trade License Renewal

In order to run a successful business, you need a legal team at your disposal to ensure that your company is abiding by the rules and regulations in the eyes of the law. United Arab Emirates (UAE) is renowned for business ventures and opportunities that can be seized by local and foreign entrepreneurs. It does not matter if you are a local entrepreneur or a foreign investor, you have to make sure that you have all the legal documentation to streamline your business activities. Having a business license is equally important as renewing your business license on time as well.

In the UAE region, you must possess a trade license from the Department of Economic Development (DED) authority. The authority essentially approves your business to carry out its business activities in Ajman. The DED also imposes hefty fines on businesses that are not carrying a legitimate license along with those which have expired ones as well, which makes it absolutely necessary to have your business license renewed on time.

This guide is dedicated to understanding the trade license renewal process in Ajman so that you can carry out your business-related activities without being concerned about getting fined and legal notices arriving at your doorsteps.

Business Licenses in Ajman

There are a number of business types in Ajman and all of them require a business license to operate in the area. Sometimes people are not aware of the different business licenses, here is an overview that highlights all types of business licenses in Ajman.

• Commercial License
  • This is mandatory to protect your business against different legal complications
• Expert License
• Industrial License
  • This is necessary to carry out different manufacturing operations
• E-Commerce License
  • In order to run an online business, you must have this license
• General Maintenance License
  • To run a business where you provide maintenance services, you must have this license

There are other types of licenses as well, which are specific to the particular fields such as Business Event licenses and Entrepreneurial Company Licenses. These types of licenses are issued by authorities that are specific to the business in question.

Document Required for Trade License Renewal Ajman

In order to renew your trade license, you must renew it annually. If you don’t do it timely then you will have to pay hefty fines. Here are the documents which are required to complete the process.

For Individuals

• License application (to complete service at a center)
• Activating the investor’s account of the license owner (for electronic service)
• The validated lease contract is valid
• External approvals (dependent on activity)

For Businesses

• License application (to complete service at a center)
• Activating the investor’s account of the license owner (for electronic service)
• The validated lease contract is valid
• External approvals (dependent on activity)
• In the case of the branch (the original must be renewed)

Documents Required for Trade License Renewal in UAE

In order to successfully ensure that your application has been processed then you will need all the right documents that are required by the authority to complete the procedure.

The complete list of documents is given below:

• Renewal of commercial license form
• Passport copies of all the individuals involved with the company
• UAE ID copies of all the individuals involved with the company
• Family member ID cards of the individuals involved with the company
• Copy of government signed a binding lease contract
• Any letter of complaint from the relevant authorities if the operation cannot be carried out except with authorization from the authorities concerned
• A copy of the signature verification certified by the Notary Public

There are some crucial details that need to be mentioned when talking about the documents required for the UAE trade license renewal. The conditions are broken down into two categories:

• Offline Documents Conditions
  • If the license has been expired for more than 3 months then you will need to contact DED
  • Only the manager or the legally approved representative of the company can submit the document
  • If the license is a branch of Ajman’s Emirate or any Emirates, a valid copy of the parent business’s license must also be provided
  • The certificate shall be renewed at the Ministry of Economics if it is a branch of a multinational corporation
• Electronic Documents Conditions
  • The format of the documents must be PDF. You can use online converters to change the format of the document from WORD to PDF
  • The attached copy must be clearly scanned and should not be edited
  • Each article should be clearly labeled
  • The size of the document should not exceed more than 70kbytes

Trade License Renewal Process in Ajman

The trade license renewal process is rather straightforward but it requires you to follow each step properly otherwise you might be looking at the rejection of the application and possible fines imposed.

Each procedural step is as follows:

1. Submit the application
   • This can either be done online or you can submit the application at one of the service centers
   • You will have to attach all the documents required by the authority to successfully carry out your application
   • You must attach the rental lease along with all the documents as the application will be considered incomplete otherwise
2. Submission of external approvals
   • This depends on the type of your business and the activities being conducted under it
3. Payment of fees
   • The charges might vary for different applications
4. Enter electronic data
   • If you are not submitting the application at the service center but through the website then you will need to insert your information along with the company profile and any other thing that is required
5. Download external approvals
   • Only if required
6. Download the certified lease statements
7. Receive the renewed license

Penalties for Neglecting the Trade License Renewal

Anywhere you go in the world, every business organization must abide by some rules and regulations and the local governments have various departments to ensure that the process runs as smoothly as it possibly can. However, if the businesses do not abide by the rules then the government reserves the right to impose fines and other sanctions.

Speaking about the trade license renewal Ajman, here are different types of things you will need to vary of if you neglect your trade license renewal.

• Monetary Penalties
  • A fine of AED 5,000 might be imposed on the business with an expired trade license
  • The office location can be seized by the authorities and closed down until the amount has been paid
  • The company might be in danger of being blacklisted if it does not follow the rules and regulations
• Black Listing of the License
  • Ultimately, the UAE authority reserves the right to blacklist the company, halt all activities, cancel all trade agreements, and publicly announce that the company has been blacklisted
• Restrictions on Business Growth
  • Initially, the respective authorities only limit the potential expansion of the company activities before blacklisting it

The losses that you might face for not timely renewing your license are far too huge to take a gamble with. This can potentially destroy your business due to government-imposed sanctions. It not only disrupts your business activities but also gives your company a bad name and other companies might not want to do business with you in the future.

You can always hire consultants and firms which are dedicated to keeping a record of your business details such as these and they will timely help you with the renewal of the licenses. RIZ & MONA takes pride in having a large team of legal experts who take care of these aspects for our clients. You can contact us for more information and we will be happy to guide you through any hurdles or obstacles you might face. In addition to that, we also provide expert opinions on how to further grow, groom, and expand your business.