How to renew a business license in Dubai It is a vital procedure for business continuity in this vibrant and commercial city. Under local laws and legislation, a commercial license is considered an essential key to the legality and legitimacy of doing business in the Emirate of Dubai. Business owners in Dubai must always be aware of the need to renew their commercial licenses regularly to avoid legal risks and potential fines that may be imposed by the authorities in the event of non-compliance. Renewing a business license in Dubai involves certain procedures that vary slightly depending on the type of company and business activity you are in. Through this article, we will take an overview of how to renew a business license in Dubai, including the basic steps, required documents, and time limits. We will also learn about some practical tips that can help make the renewal process smooth and efficient, ensuring successful business continuity in the Emirate of Dubai.

 

What is a trade license in Dubai?

A commercial license is a legal document granted by the competent government authorities that allows an individual or company to legally practice commercial activities within the country. A commercial license is considered a basic requirement for any business, as it provides a legal framework for conducting commercial activities and determines the scope of permitted businesses. The commercial license includes basic information such as the company name, type of business activity, address, and duration of the license. The license also contributes to protecting consumer rights, enhancing transparency, and regulating the market. To obtain a licence, applicants must submit certain documents, such as a business plan, details about owners, and sometimes, approvals from specialized regulatory bodies.

How to renew a trade license in Dubai 

• Go to one of the centers specialized in renewing the commercial license.
• Submit the expired commercial license.
• Pay the fees for renewing the commercial license.
• Fees can be paid through manual payment outlets or electronic payment outlets.
• There is another way to answer the question of how to renew a trade license in Dubai, by sending a text message to 6969 including the trade license number.
• Pay the commercial license fees through the fee payment link.
• After the previous steps, the commercial license will be renewed and will be valid for use for one year from the date of issuance.
• The number of years of the license can be increased to a maximum of four years by entering the number of years with the license number.

What business licenses are available in Dubai?

 There are several types of business licenses in Dubai  that investors can choose from according to their needs and the type of business activity they wish to engage in. Among these licenses:

1. Sole Establishment License: This license allows an individual to establish and manage a business on his own without other shareholders.
2. Limited Liability Company – LLC: allows a number of shareholders to establish the company and share financial responsibility among them, while imposing restrictions on personal liability.
3. Public Joint Stock Company (PJSC): Allows the public to participate in capital, allowing greater funds to be raised and distributed to shareholders.
4. Private Joint Stock Company – PrJSC: Similar to a joint-stock company, but it is private to a specific number of shareholders and the public cannot participate in it.
5. One Person Company (OPC): Enables one person to establish a company on his own and retain full control of the business.
6. Branch of a Foreign Company: Allows foreign companies to open branches for their activities in Dubai.
7. Free Zone Establishment – FZE: It allows individuals or companies to establish companies in free zones with benefits such as full foreign investment ownership and tax exemptions.
8. Offshore Company: Allows companies to open bank accounts and invest abroad without the need to have a physical office in Dubai.

Types of commercial license in Dubai

Here is a table showing the types of commercial licenses in Dubai with details of each type:

Each type of license requires specific requirements and serves specific business activities. Choosing the appropriate license depends on the type of business activity you want to practice.

Commercial activities permitted under the Dubai trade license

The commercial activities that can be practiced in Dubai under a commercial license are varied, and vary according to the type of license and the legal form of the company. It is important to pay attention to the classifications of commercial activities approved in Dubai and ensure that the desired activity on the license complies with these classifications. Here are some common business activities that can be practiced under a business license in Dubai:

1. Professional and consulting services, such as legal, engineering, and accounting services.
2. Trade and distribution, including the sale of consumer products, food and technical products.
3. Small and medium industries, such as food, handmade products, clothing and textile industries.
4. Logistics, transportation and warehousing services.
5. Tourism and hospitality, including restaurants, hotels and tourism agencies.
6. Health and medicine, including medical clinics and pharmaceutical pharmacies.
7. Real estate and construction, including real estate brokerage, construction and real estate development.
8. Leisure and entertainment services, such as beauty salons, sports clubs and entertainment centers.
9. Technology services, such as software development, design and digital marketing.

The cost of obtaining a business license in Dubai

The costs of obtaining a business license in Dubai vary based on the type of license, scope of business activity, geographic location, and other legal and administrative requirements. However, the overall cost of obtaining a business license in Dubai can be estimated as follows:

• Basic licensing costs: include registration and basic license fees paid to the relevant government agencies.
• Rental and real estate costs: Companies must rent a place to conduct business activities, and the rental price depends on the location, size, and available equipment.
• Legal and consulting fees: Some legal and consulting lines may require the services of attorneys or consultants to assist the company in the incorporation process, which can incur additional costs.
• Additional government fees: The incorporation process may involve paying additional fees for some government services such as medical examination, document authentication, etc.
• Labor and Human Resources Costs: Staff and human resources must be provided to manage and operate the company, which includes salary and fringe benefits costs.
• Insurance and other licenses: Some businesses may require you to purchase insurance or obtain other special licenses, adding to the overall cost.

Documents required to obtain a business license in Dubai

To obtain a business license in Dubai, you usually need to submit a set of basic documents. These documents may vary slightly depending on the type of business activity and the type of license you are requesting, but usually include the following documents:

• License application form: You must fill out and sign the application form provided by the relevant government entity.
• Copy of passport for owners: A colored copy of the passport for all major shareholders or owners of the company.
• Owner visas: A copy of the visas of the owners who will manage the company, if they are non-residents.
• Office Lease Contract: A copy of an office lease specifying the location of the business. The lease contract must comply with the requirements of government agencies.
• Business Plan: A detailed document outlining the company’s goals, type of business activity, marketing plans, administrative organization, and expected financial resources.
• Owner’s license or legal form: A copy of the owner’s license or company’s legal form if the Court of Commerce requires it.
• Approval from the competent authorities: In some cases, you may need approval from specific authorities such as the General Authority for Corporate Media and financial authorities.
• Personal photos: Personal photos of major shareholders or owners may be required in some cases.

Necessary requirements to obtain a business license in Dubai?

To obtain a business license in Dubai , it usually requires many steps and requirements. These are some general steps and requirements that are usually included in the process of obtaining a commercial license in Dubai:

1. Choosing the type of business activity: You must determine the type of business activity you wish to practice, whether service, commercial or industrial, according to the classifications of commercial activities approved in Dubai.
2. Choosing the legal form of the company: The company can be a sole proprietorship, a partnership, a joint stock company, a limited liability company, and others. The legal form that suits the company’s activity and business requirements must be chosen.
3. Determine the company’s main location: The company’s location must be determined and ensured that it complies with local laws and regulations.
4. Submitting the required documents: The required documents vary depending on the type of business activity and the legal form of the company, but usually include trade license applications, a copy of the personal identity of the owner or shareholders, a business plan, a lease contract for the company’s main location, and others.
5. Submitting a license application: The license application must be submitted to the competent government authorities in Dubai, such as the Department of Economic Development (DED).
6. Payment of fees: Obtaining a commercial license requires paying the required licensing fees and administrative fees.
7. Implementation of additional legal procedures: There may be additional legal procedures related to the company, such as signing contracts with customers or suppliers, submitting the necessary permits for operation, etc.

Ultimately, renewing a business license in Dubai is a vital process to ensure business continuity and compliance with local laws. Business owners should prepare in advance for this process by gathering current license documents and required information, and submit the application in good time before the license expires. By adhering to the requirements and procedures specified by the Department of Economic Development in Dubai, business owners can seamlessly renew their license and ensure business continuity in a legal and orderly manner.

Frequently asked questions about how to renew a business license in Dubai