Having a commercial license in Dubai is an excellent advantage for you as an investor, to enjoy the facilities and the favorable environment for the companies that the United Arab Emirates developed for all the companies that operate here. It is recommended to renew your dubai mainland trade license on time to avoid any penalty for expiration of the license and keep your business running smoothly without complications that arise due to non-renewal.
All commercial trade licenses in Dubai must be renewed annually “every year” or every two years if the lease agreement permits. The renewal process requires a new valid lease agreement attested by the Real Estate Regulatory Authority “EJARI,” as well as another approval by the Regulators of Commercial Activity to be accepted by the Department of Economic Development for the renewal of the License.
If your business license expires and after that also you continue to operate as a company, you may not only face monetary consequences; you can also find that your business is blacklisted. And, we, Business Link UAE helps you renew your mainland trade license in Dubai.
Being blacklisted is a severe punishment that imposes restrictions on all aspects of your operations, such as:
- The transactional capabilities of the company will be blocked.
- Visas can be invalidated and travel bans imposed.
- Sponsors could dissociate themselves from your company, leaving you without critical sponsorship.
- The owner, shareholders, directors and managers could even be deported from the UAE.
How to renew your mainland trade license in UAE?
The basic steps to renew your mainland trade license in UAE are:
- Visit the Department of Economic Development for the presentation of documents (an authorized PRO can do it)
- Present a valid lease agreement attested by the Real Estate Regulatory Agency (EJARI) / in case of individual property, a certificate of ownership must be presented.
- Provide the approval of the commercial activity regulator, if applicable for your license.
- Pay the license renewal fees. Rates depend on the particular business activity assigned to your license; meanwhile, license renewal fees vary from one license to another.
- Receive the renewed license. Your renewed license will be delivered upon completion of your payment.
If you are not thinking about renewing your continental business license on time according to the expiration date, you must at least request FREEZE THE LICENSE. This process allows you to freeze and delay the renewal of your business license for a certain period to avoid charges for the renewal of the expired license. The process can be done by providing the following documents:
- A letter from the company or institution, requesting to suspend the license temporarily.
- Letter from the Ministry of Labor indicates the absence of sponsored persons in the license.
- Report from the inspection division in the Dubai Department of Economic Development.
After the presentation of all the previous letters, the Department of Economic Development will grant you an official state of ‘Freezing’ that will keep your existing license but not active. Therefore, you will not receive any unnecessary charges for the renewal of the expired license. We recommend all our valuable clients to operate and manage your business intelligently and effectively to reduce the overall cost.
There are so many elements that can be implemented to reduce the indirect cost of the entity. The rental of a convenient and profitable office as a location with service with a business center is an ideal element to not only reduce the cost of rent but also help you reduce the cost of employees, public facilities and many other aspects which we will talk about in some upcoming articles to keep you educated with some useful thoughts.
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