The Department of Economic Development (DED) oversees the trade license renewal process, which is mandatory for businesses in the Dubai mainland. To maintain legal compliance and continue business activities, companies must submit the required documents and pay the renewal fee to renew their trade licenses.
Trade licenses must be renewed annually, and failing to renew the license on time can lead to significant penalties and disrupt business operations. This article will guide you through the process of renewing your trade license, ensuring your business in Dubai remains in good standing.
Consequences of Failing to Renew Your Trade License in Dubai
Types of Trade Licenses Issued by DED
There are four main types of trade licenses available in Dubai issued by the Department of Economic Development (DED), each catering to different types of business activities:
Commercial License
This license is required for businesses that engage in trading activities, such as buying and selling goods, general trading, and other commercial activities. It covers activities like retail, import/export, and real estate.
Professional License
Issued to individuals and companies providing professional services, this license is for activities that rely on intellectual or artistic talent, including consultancy services, educational services, medical services, and technical professions like carpentry or IT.
Industrial License
This license is necessary for businesses involved in manufacturing or industrial activities. It covers industries such as factories, manufacturing plants, and production units.
Tourism License
Required for businesses that operate within the tourism sector, including travel agencies, tour operators, and hotels.
Steps to Renew Trade License in Dubai Mainland
Check License Expiry Date
Start by confirming the expiration date of your current trade license. It’s crucial to begin the renewal process at least 30 days before the license expires to avoid late fees.
Prepare Required Documents
Gather all necessary documents, which typically include:
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- A valid Ejari certificate (tenancy contract)
- A copy of the existing trade license
- BR/1 form (license renewal application form)
- Copies of passports of all business partners
Submit the Renewal Application
Submit the completed renewal form and the required documents to the DED. The renewal process can be completed online via the DED e-Services portal, through the DED mobile app, or in person at authorized service centers.
Pay the Renewal Fees
After submission, you will receive a payment voucher. Pay the renewal fee as per the DED’s instructions. The fee amount depends on the business activities and the location of the business.
Receive the Renewed License
Once the payment is processed and all requirements are met, the DED will issue the renewed trade license. You can receive this either digitally or as a physical copy, depending on your submission method.
Check for Additional Requirements
Depending on your business type, you might need to undergo inspections or obtain additional approvals from relevant authorities to complete the renewal process.
Documents Required for Trade License Renewal in Dubai
To renew a DED trade license in Dubai, you need to gather and submit the following documents:
FAQS (Frequently Asked Questions)
What is the cheapest mainland license in Dubai?
The cheapest mainland license in Dubai is the “Instant License,” starting at approximately AED 3,000, depending on business activities.
Is there a grace period for trade license renewal in Dubai?
Yes, there is a 30-day grace period after the license expires during which you can renew without incurring late fees.
Which department issues trade licenses in Dubai?
The Department of Economic Development (DED) issues trade licenses in Dubai.
Can I change my trade license activity during renewal?
Yes, you can change your business activities during renewal, subject to additional approvals.
Can I renew my trade license if my company is not operating?
Yes, you can renew the trade license even if your company is not operating, provided all renewal requirements are met.
Can I renew my trade license online?
Yes, trade licenses can be renewed online via the DED’s e-Services portal or Dubai Now app.
What happens if I don’t renew my trade license in Dubai?
Failure to renew can result in fines, legal action, and a potential ban to the business license.
What is the Fine for Expired Trade License in UAE?
The fine for an expired trade license is AED 5,000, plus AED 250 per month of delay.
