What is Ejari and How can it Help with Trade License Renewal in Dubai?
Ejari is a document that can be submitted to the Dubai Department of Economic Development (DED) to renew trade licenses. The idea is to ensure businesses keep abreast with their license renewals and update their records yearly. The department also offers extensive documents proving ownership, trade license renewal in Dubai, or other licensing matters.
Trade licenses are legal documentation granting a company the authority to engage in specific trade or business activities called for in the company’s documentation.
Suppose you’re currently running a company in Dubai. In that case, you’re likely already aware of the rules for securing an initial business and trade license from the government for buying, selling, trading, and providing other business services. But it isn’t a one-time task; one must properly maintain the license. Failure to renew a trade license may lead to serious negative consequences.
To have your business’s license renewed, a company may use either offline or online channels with the DED. Your business’s classification and the kinds of tasks related to your license determine how time-consuming the renewal process will be for you.
OfficeHub Business Centre is here to help guarantee that your Trade license renewal goes smoothly! We’ll make your renewal to keep everything on track, give you helpful reminders about what will be needed, and help to speed you through this process. One of our business specialties at OfficeHub Business Center is assisting your business in getting a trade license renewal in Dubai in a timely, efficient, and simple manner.
Requirements for using EJARI for Trade License Renewal in Dubai
It is a mandatory requirement for all companies and businesses operating in Dubai to have a valid EJARI certificate. This certificate serves as proof of tenancy agreement and helps the authorities to keep track of all the businesses in the city.
Your annual trade license is valid for only one year and must be renewed annually. You must apply for a re-extension of this license 30 days before expiration. If you fail to do that, a late fine may be levied on you, which is AED 200 per month (excluding associated fines, if any). The UAE has approximately 50 free trade zones, all with their requirements for trade license renewal.
The Ejari Renewal Documents for Dubai Trade License Renewal are listed below
- Valid Tenancy contract with Ejari
- Renewal application form
- Existing trade license copy
- Passport copies, both for the owner and for any business partners
- ID copy
You must have a tenancy contract valid for one month or more to renew the license. Before applying, you must first check and verify your tenancy contract. Ejari must confirm the contract. If your contract is not valid for at least one month, they can reject your trade license renewal request under legal obligations.
- Old Trade License copy
- BR/1 Form
BR/1 is a license renewal form that must be completed and submitted to start the whole process. You must fill out a BR/1 form with the signature of all the existing partners and submit it for approval. All the required documents must be attached to this form before submission.
Other supporting documents may be required
- No objection certificate (NOC)
- If your business is a branch of an onshore company, a Certificate of Continuity of Existence, Good Standing, or the current company’s trade license could be required
At some point, a novice may find a trade license renewal utterly frustrating and lengthy. But by working with the experts in OfficeHub Business Centre, you can stop all that stress and aggravation. You can depend on our professional team, and all your paperwork will certainly be in good hands!
Reach out now to book your free consultation! You can give us a call at +971 55 869 0248 or shoot us an email at info@officehubdxb.com Please don’t wait; let’s get started today!
Trade License Renewal fees in Dubai, UAE?
The fee for trade license renewal in Dubai is around AED 8,000 to AED 15,000. Moreover, Dubai’s trade license renewal & ejari renewal fees depend on the jurisdiction and economic zone.
You qualify for the trade license renewal Dubai refund on accommodations charges upon completing a residential Ejari. Furthermore, you’ll get immense discounts from the Chamber of Commerce fees.
The process of Ejari for Trade License Renewal in Dubai
If you operate a business in Dubai, the influence of your location is negligible. The only major difference is the authority to renew your license or permit. However, certain jurisdictions require you to submit the financial audit report for your last year to be successful in the renewal process.
Consequences for not Renewing your Trade License in Dubai
A valid license is critical in ensuring hassle-free business in Dubai, UAE. Trade license renewal in time protects you from the possibility of banning or blacklisting your company. Always keep an eye on your tenancy contract and trade license. Failing to renew the license before expiration can lead to legal issues. Some of them include the following:
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Penalties:
The Dubai Department of Economic Development DED is empowered to impose fines on companies that do not renew their business licenses. That who don’t have business licenses can impose penalties of AED 5,000 on organizations. Furthermore, a penalty of AED 250 per month applies to businesses that carry out illegal trades after the expiration of the business license.
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Blacklisting business:
Without a business license, a company is susceptible to being blacklisted. Terminating the operation of the entire company would then be the likely consequence.
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Banning the company:
The DED can shut down your enterprise in Dubai if your trade license is invalid in the UAE. It can have serious consequences, and you may be unable to reestablish your business in Dubai.
Frequently Asked Questions
How long does the Dubai Trade License grace period last?
Renewals of Mainland licenses in Dubai carry a 30-day grace period. After that date, you’ll be fined.
For my trade license renewal, do I need Ejari?
Yes, Ejari is needed to renew your license. The Real Estate Regulatory Authority must certify your tenancy agreement. If you try without providing Ejari-certified documentation to renew your license, your application will probably be denied, and you may also be penalized.
In Dubai, how many types of trade licenses are there?
Different types of trade licenses are offered in Dubai, including commercial, industrial, agricultural, tourist, hospitality, and more. Depending on the business activities involved, an individual or a corporation can apply for any trade license or license.
What’s the penalty for letting a trade license expire?
Ignoring or failing to renew your trade license may result in serious penalties and could affect your business in other ways. Postponing licensing may harm your company’s records, limiting your growth opportunities. Your company could also be in danger of being blacklisted if you put off your license renewal.
But with the proper understanding and a successful partner on your side, renewing your license for your business doesn’t have to be an arduous process. Come over to OfficeHub Business Center to speak with the licensing specialists.
What is the fine for not renewing a trade license in Dubai?
AED 200 per month after the 30-day grace period
Is it possible to get a discount on the payment voucher for the Dubai license renewal?
Yes, Depending on the fees mentioned in the voucher, a discount can be used for the licensing and employee accommodation allowance by providing partner’s and employees’ Ejari and DEWA bills.
Is providing an Ejari or tenancy contract mandatory to renew the license?
Yes, Licenses cant is renewed without Ejari or a tenancy contract.
Could the license renewal fee be paid in instalments?
Earlier in 2020 and 2021, this facility was available to license holders, but the government has stopped providing instalment plans.
Why Choose OfficeHub Business Centre for an Ejari certificate service?
Trade license renewal in Dubai is smoother than before when contacting OfficeHub Business Centre Setup. Our business experts will help you through the renewal process to ensure that everything works smoothly in order. By assisting, we ensure that our client focuses only on business growth activities.
Getting an Ejari certificate has some requirements. One is having a business address in Dubai, where we come in.
Our Ejari membership has flexible plans suited to the needs of every growing business. Plus, you get an address in the prestigious centre of Dubai.
Our team ensures that you’re notified and updated on the expiration dates and renewal dates of your business license, thereby enabling a smooth licensing procedure and peace of mind on your part.
