April 7, 2021 Ultimate News Hub

How To Renew The Trade License In Dubai?

Every organization in Dubai must have a trading license to run their Business, making it very important and renewing the license every year. It is the Department of Economic Development (DED), which sees the licensing process in Dubai. The updated support is a complicated process and requires a lot of documentation.

The license must be extended on time or can cause penalties, fines, and even business prohibitions. Before entering the license update, someone must know the type of license in Dubai issued by DED.

Types of Trade License

Types of Trade License

Obtaining a legitimate trade license is one of the necessary prerequisites for Business in Dubai / UAE. The fair trade license in Dubai allows an entrepreneur to legally carry out business activities or a group of activities specified in the permit. Pampering in all activities without a valid trade license is considered “illegal” in the UAE. There are three types of trade licenses released in Dubai. And they are listed below.

Commercial License

Every business activity that involves the sale of tangible products must submit a commercial license to start its functions.

Manufacturing License

Every manufacturer and industrial company must obtain an industrial license to function.

Professional License

It is providing services that require special skills for exchange fees coming under the professional category. Is obliged to have a professional license to do the same.

Steps To Renew Trade License

Trade or business license is one of the most important requirements for doing Business in Dubai, and getting updated business licenses to involve many documents processed. Also, updating business trading licenses can be a long process if you are not used to it. The delay in submitting a penalty for licensing of trade licenses, or worse, prohibits business licenses, freezes all business activities.

Valid Tenancy Contract Your Tenancy Agreement must have a minimum of 3 months validity to submit a license update. You cannot apply for license updates if the Tenancy Agreement has exceeded this minimum validity period. The lease agreement also requires EJARI ratification. Therefore, it is advised not to delay the renewal procedure until the last moment.

  • Get Approvals

Before applying for a licensing update application, you should have achieved the approval needed from all relevant authorities. Let’s consider the licensing of a restaurant in Dubai. Before an update, a restaurant needs to find support from the Department of Food Security and various other government institutions.

  • Get Documents Ready

Here are some essential documents you have to submit with the license renewal application

  1. Certificate of Ejari Registration
  2. BR/1 form (typed)
  3. Existing trade license (copy)
  4. Tenancy agreement
  5. Business partner’s passport. (copy)
  • Submit Application for License Renewal

Apply for license updates in the Department of Economic Development in Dubai. Submit the lease agreement, EJARI ratification, business partner passport, the application form filled with, and all other supporting documents to Ded.

  • Accept Voucher

After verifying the licensing update application and all the documents sent, DED issued a payment voucher. Accept payment voucher.

  • Make payment

After sending the application, DED will divert the payment voucher. After you receive a coupon, proceed to the payment procedure. Immediately after making a payment, you will receive your new license from the channel.

What Happens If You Fail to Renew your License Application?

Failure to renew the business setup in Dubai license in the specified time can withdraw penalties and other complications that can affect the company’s reputation. The main scenario is listed below.

  • You will Have To pay a Penalty.

When the licensed Business ends, the Department of Economic Development in Dubai can impose a company with several losses. A firm that practices without a license get punishment with AED 5000. In contrast, the failure to renew the request within the specified time limit can cost the AED 250 / month and an additional office for existing licenses without permission with AED 2000.

Business permissions that expire can make your company fined. Each delay in payment can also lead to a penalty for the Business concerned. The company can be subject to a monthly fine, as mentioned earlier. The fine began to accumulate right after the expiration date. The business continuation without renewing a trade license can lead to a company gets blacklist by each authority. In such cases, companies must seize all transactions, and visas and sponsors listed based on the company name can be made null & canceled. Business expansion limits if you do not update your license.

  • You Cannot Expand Business.

Companies with expired licenses are not allowed to develop in this situation. Companies must have clean records if there are expansion plans.

You must focus on finding clients and customers and ensuring you give them what they need, but you also have much administrative work in the background.

  • Ruin Your Business

Make sure you know the expiration date and work at that time to update it, if possible, before the deadline. A person’s authorization in the company you trust to solve it or work with external partners can take responsibility from your shoulders. Either Way, keep your license valid, or your Business will suffer, and you can risk losing everything.

  • Blacklisting of company

When Business continues its business activities without updating their trade licenses, it is possible that the company can enjoy blacklists and will stop all activities faced by the company. They can cancel visas and sponsors under the company.


Companies need to update their licenses because expiration can even damage your entire company. The company prohibits cutting rights, and even your transactions confiscate, and the visa and sponsors listed by the company will no longer be valid.

A mandatory trade license for any business existence is why the organization designates someone specifically for this purpose. Outsourcing business setup consultants for this activity is one of the most common trends followed by business organizations. Everything will be done very carefully from issuing trade license, to trade license renewal to trade mark registration in Dubai, UAE and extended in time without risking the organization’s future.

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