The process of renewing a commercial license in Dubai is one of the essential steps that ensures the smooth and uninterrupted continuity of business activities. When a commercial license expires, companies must take the necessary measures to renew it in accordance with local regulations and laws, in order to avoid any legal obstacles or fines that may affect the workflow. Renewing the license is an indicator of the company’s commitment to government laws and requirements, and is a positive sign of the company’s reliability and activity within the UAE market.
The Dubai government facilitates the process of renewing a commercial license by providing electronic services through platforms such as “Dubai Economy” and “Basher Services”, where business owners can renew their licenses with ease and convenience without the need to visit government departments. These platforms offer a range of options that suit various economic and commercial sectors, making the renewal process more effective and efficient.
The steps to renew a commercial license in Dubai include verifying that all legal requirements have been met, such as paying the due fees, submitting the necessary documents, and obtaining approvals from the competent authorities if necessary. Business owners should also adhere to new updates that may occur in renewal requirements, as government agencies seek to improve and develop renewal procedures to keep pace with the latest international standards.
In this article, we will discuss everything related to renewing a commercial license in Dubai, including renewal steps, required fees, and the most important tips that help companies renew their licenses easily and without complications.
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ToggleSteps to renew a commercial license in Dubai
To renew a commercial license in Dubai, you can follow the following steps:
Preparation in advance: Prepare for the renewal process before your current commercial license expires, usually this process should start at least two months in advance.
Update data: Make sure that all data related to the company is up to date and correct, including contact information and company address.
Pay fees: Pay the required commercial license renewal fees. These fees may vary depending on the type of business activity and the size of the company.
Submit documents: You may need to submit some documents such as a completed renewal form, a copy of the current commercial license, and any other required documents.
Visit the concerned authority: Visit the concerned authority, in the case of Dubai, usually the Department of Economic Development (DED), to submit a request to renew the trade license.
Scrutiny and approval: After submitting the application, the documents and information provided will be reviewed, and in case of full compliance, the license renewal will be approved.
Receiving the renewed license: After approval, you will be able to receive the renewed trade license, which will prove the continuity of your business activity in Dubai.
Cost of renewing a trade license in Dubai
Renewing a trade license in Dubai is a necessary procedure to ensure the legal continuity of the business activity, and its cost is affected by several factors including the type of business activity, the location of the company, the type of trade license, and legal requirements. Renewal costs are divided into several items, including basic fees, additional fees for some commercial activities, in addition to costs associated with approvals from the competent authorities.
Basic fees: Renewal costs include basic fees, which vary according to the type of business activity and the type of license (whether it is a commercial, industrial, or service license). Also, fees can vary depending on the location of the company, whether it is within the city or in a free zone, as free zones have some special advantages but also impose their own fees.
Additional activity fees: Some business activities require additional approvals or special permits from different regulatory bodies, such as health, education, and food activities, which require approvals from entities such as Dubai Municipality or the Department of Health. These approvals are usually associated with additional fees that are added to the license renewal costs.
Location and business address costs: Companies in Dubai must specify a registered physical address, and there may be fees associated with the lease or renewal if the office is located within a commercial building. In free zones, companies are required to provide office space or registered addresses within the free zone itself, and these costs are added to the license renewal budget.
Insurance and visa sponsorship costs: If the company employs foreign workers, it may need to pay fees related to health insurance and visa sponsorships for employees. These fees may vary depending on the number of employees and the type of visas required, and their fees are part of the license renewal costs.
Late fees and fines: It is necessary to renew the commercial license before its expiration, as the Department of Economic Development may impose fines on companies that are late for renewal.
Documents required to renew a commercial license in Dubai
To renew a commercial license in Dubai, you need to submit a set of basic documents. Here is a list of the documents required to renew a commercial license:
License renewal application form: You must fill out the application form for renewing a commercial license, which can be obtained from the Department of Economic Development.
Copy of the previous commercial license: Submit a copy of the current commercial license you wish to renew.
Copy of passport: A valid copy of the passport of the owner or partners is required, in addition to residence visas, if any.
Personal photo: A recent personal photo of the owner or partners is required.
Lease contract: Submit the current lease contract for the office or place where the company operates, and the contract must be valid.
Accounts report: An accounts report or financial statement showing the financial status of the company may be required.
Approvals of the relevant authorities: If the company\’s activity requires special approvals from government agencies, these approvals must be submitted.
Health insurance: If the company employs employees, a valid health insurance policy must be submitted for all employees.
Additional Certificates or Permits: Some activities require special certificates or permits upon renewal, so make sure to check this.
Legal Power of Attorney: If there is an agent performing the renewal process, a legal power of attorney must be provided authorizing him to do so.
In conclusion, we find that renewing a commercial license in Dubai is one of the essential steps to ensure the continuity of the business and compliance with local laws. This process requires a thorough understanding of the requirements and procedures necessary, as the commercial license plays a vital role in establishing the company\’s identity and ensuring its ability to practice commercial activities legally.
The renewal process is also an opportunity to update information related to the company, such as changing the address or adding new activities, which contributes to improving the efficiency of business operations. Therefore, it is essential for business owners to be aware of renewal dates and the required documents to ensure that they are not exposed to any fines or cessation of activity.
Also, using specialized companies in this field can greatly facilitate the procedures, as they can provide advice and technical and administrative support, saving time and effort for business owners.
It is worth noting that renewing a commercial license reflects the business owner\’s commitment to his legal and professional responsibilities, and enhances the company\’s reputation in the market. Therefore, all businessmen and investors in Dubai should treat renewing a commercial license as a necessary strategic step and not an administrative burden.
Finally, investing in renewing a commercial license is an investment in the future of the business, as it gives confidence to customers and partners and enhances the chances of success and expansion in a dynamic market like Dubai. Every entrepreneur should remember that renewal is not just a routine procedure, but rather a foundation for building a sustainable and thriving company in a competitive environment.
The most important frequently asked questions about renewing a commercial license in Dubai
Can a commercial license be renewed after its expiration?
Yes, the license can be renewed after its expiration, but late fees may be imposed.
Can a company\’s activity be changed during license renewal?
Yes, it is possible to change the activity during the renewal process, but this requires submitting a separate application and obtaining the necessary approvals.
What are the benefits associated with renewing a commercial license?
Renewing a license ensures the continuity of legal activity, and helps maintain the company\’s reputation and increase its credibility.
Can a trade license be renewed online? Yes, Dubai Department of Economy and Tourism provides online renewal services to facilitate the procedures for investors.