Penalties Applied After Business License Expired in Dubai
Introductio A trade license n is one of the essential
requirements to start a business in Dubai. It has to be renewed before it gets invalid. To renew your business license a lot of documents need to be processed. It is a long process if you are not aware of its every small detail and might be overwhelming for you. If renewal is delayed then you might be penalised or even barred from obtaining a business license, and in the worse case, all your business activities can be frozen. 2
Types of Penalties on No- Renewal of License Monetary fines
01 Prohibition on Company’s Expansion Phase
02
Company/Business Became Blacklisted
03
Monetary Fines When a license of a business expires, the Department of Economic Development (DED) in Dubai can levy a business with several penalties. • • •
If a business operates without a license, it can be penalised with AED 5000, Failure to renew trade license within the stipulated period limit could cost AED 250/month, An additional office for an existing license without permission costs the entity with AED 2000.
Once the license has expired, the fines start accumulating. If you continued to operate without renewing your license it can lead to the company being blacklisted by the concerned authorities. For further information on business license rules, renewal policies, and penalties, you must hire a trade licences consultancy in Dubai. They can also help you process the 4 license in a hassle-free way.
Business Became Blacklisted If a business continues to operate without renewing its trade licenses, it is possible that the company could be blacklisted. It can also lead to the suspension of all the business activities the company is engaged in. The respective authorities can also nullify the visas and sponsors under the company.
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Prohibition on Company’s Expansion Phase The companies with expired licenses are not allowed to expand under these circumstances. It is essential for companies to have a clean record if there are plans for expansion. There is a lot to think about when you start a business. You have to focus on finding clients and customers and making sure you provide them with what they need, but you also have a lot of administrative work to do in the background. Even if you are organized at the very beginning, chances are there will be things that get missed in a year or two as the work builds up. 6
Steps to Renew Trade License 01. Have a Valid Tenancy Contract
02. Make the Payment
The first thing to ensure is that the firm’s tenancy contract should have a validity of at least 1 month, and it should be attested by Ejari. If the tenancy contract does not have a validity of at least a month, the associated license cannot be applied for renewal.
After submitting the application, the DED shall allot a payment voucher. Once you receive the voucher, proceed to the payment procedure. Immediately after making the payment, you will receive your renewed license from the channel.
03. Apply for License Renewal Doing business in Dubai needs approval from concerned authorities in order to renew their business license. Apply for license renewal at the DED, along with all the required documents. Here is a list of all the documents required for renewal of trade license in Dubai:
• • • •
A typed BR/1 form Ejari Registration Certificate and a photocopy of Tenancy Contract Photocopy of the current business trade license Passport photocopies of all the business partners
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