Trade License Renewalin Dubai
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Renew Your Trade License in Dubai
A Dubai Trade License, which gives you the legal right to operate in the UAE, is valid for 12 months and must be renewed every year to keep your business compliant and active in Dubai.
During Dubai trade license renewal, businesses can update their business activity details and often complete the process online through official portals. You can amend your Trade License by adding, removing, or changing business activities. Additionally, mainland companies may change their Local Sponsor, registered corporate address, business partners, or management structure.
Renewal requirements, approvals, and costs vary based on license type and business activity. Timely renewal helps foreign investors, entrepreneurs, startup founders, SMEs, freelancers, and corporate companies avoid fines, blacklisting, and business disruption. This guide covers the renewal process, required documents, late-renewal penalties, special approvals for certain businesses, and how A&A Associate LLC can assist.
List of Documents Required for Trade License Renewal in Dubai
- BR/1 Form
- A copy of your current Business License
- Ejari or Tenancy Contract
- Copies of the passports of all business partners
Documents for Mainland Businesses
Mainland businesses must have a valid Ejari for trade license renewal, so update your lease and Ejari registration before the expiry date. The Ejari should be valid for at least one month, with a tenancy period typically expected to be one year. Without this, the renewal application may be rejected. If your tenancy contract is expiring soon, consider renewing it if you plan to continue at the same address. Alternatively, you can enter a short-term tenancy contract just to renew your license or move to a new address before applying for renewal.
Documents for Free Zone Companies
Free zone licenses are renewed directly through the relevant free zone authority and do not require an Ejari. Some free zone companies must submit a No Objection Certificate (NOC) from their Free Zone Authority. Clear any pending dues before renewal. Certain free zones may require an audit or Chamber of Commerce membership renewal before renewal. Meydan Free Zone may ask for attested compliance certificates.
Additional Approvals for Specific Business Activities
Some businesses need additional approvals for renewal. For example, food traders need Dubai Municipality approval, gold traders require Dubai Police permission, chemical sales need Dubai Narcotics Department clearance, transportation companies must get Roads and Transport Authority approval, and healthcare businesses require Ministry of Health and Prevention permission.
Onshore Branch Offices
Onshore branch offices must submit a Certificate of Good Standing or Certificate of Continuity of Existence with their renewal application.
Costs and Timeline for Trade License Renewal
- Cost Range: The renewal fees for standard mainland trade licenses typically fall between AED 8,000 and AED 15,000. These fees depend on factors such as the nature of your business activity, the rental value of your premises, and applicable market fees.
- Grace Period: After your license expires, there is a 30-day grace period during which you can renew without penalty. Beyond this period, a monthly fine ranging from AED 200 to AED 250 is imposed for late renewal.
- Processing Duration: Once all necessary documents, including a valid Ejari, are submitted and payment is made, the renewal process usually takes between 1 to 3 working days to complete.
Consequences of Not Renewing Your Trade License in Dubai
You are expected to complete timely renewal of your Trade License 30 days before the license expiry date, ideally within any applicable grace period to avoid issues.
- The Department of Economic Development can impose penalties of AED 5000 for late renewal or any delay in renewing your Trade License on time.
- If you do not renew your Trade License on time, you are liable to a fine of AED 200 for each month of delayed renewal that you operate without a valid Trade License.
- There is the danger of your company being blacklisted after one year with an expired license, which means that it will have to cease all operations immediately.
- An even worse punishment exists in the form of your company facing possible license cancellation after twelve months of prolonged non-renewal. If this happens, you cannot re-establish your presence in Dubai.
- There is the likelihood of your bank freezing your corporate bank account, disrupting banking access and wider business operations.
- The Ministry of Labor does its part to ensure that no further employment visas are issued to your company.
- The General Directorate of Residency and Foreigners may refuse to issue dependent visas to the family members of employees or business partners in the company.
- Your Customs Client Code may be cancelled, meaning you cannot export anything from – or import anything into – the United Arab Emirates.
Existing visas that have already been already issued may be withdrawn, running the risk of deportation from the United Arab Emirates. So if you do not plan to continue with your business, you need to cancel your Trade License instead of abstaining from renewing your Trade License.
How to Renew Your Trade License in Dubai
Renewing your Trade License in Dubai consists of the following steps
- Fill out the BR/1 form with the signatures of all business partners, attach the supporting documents including Ejari, and submit the renewal request as a single application through the Department of Economy and Tourism or the Invest in Dubai portal for mainland businesses.
- The Department of Economic Development reviews your application for Business License Renewal (this is the same as a Business License) and, if everything is in order, the application is approved and you receive a payment voucher. Eligible companies can also complete dubai trade license online renewal through Dubai Now or by SMS via 6969, and you can check the status using your license number.
- You can pay the renewal fees by following the instructions on the payment voucher that contains a unique transaction number; fees vary by license category and number of visas. This service is designed to help businesses stay compliant with government rules without unnecessary delays.
- Once the payment is received, the renewed license is typically issued within 1–2 working days for standard cases. Dubai strives to live up to its reputation as an investor-friendly destination for business and trade. As such, they have made the process as simple as possible.
Free zone companies, including Meydan Free Zone, usually renew through their own portal, with some renewals completed 100% online within an hour using Dubai services.
There are no delays in this relatively straightforward and seamless process.
Why Choose A&A Associate LLC for Renewal of Trade License in Dubai?
We have years of experience helping companies renew their Trade Licenses in Dubai and the rest of the United Arab Emirates while supporting ongoing compliance with UAE regulations. We can help you fill out the BR/1 form correctly, see to it that all the supporting documentation is attached, make the payment on your behalf, and assist with related accounting requirements. This way, we help you avoid renewal delays that can affect contracts and banking, so you don’t have to go through the hassle of renewing your Trade License every year. You can continue to focus on what you do best – running your business.
For more details, get in touch with us.