How to renew a trade license in Dubai

Types of licenses available in the Dubai Outsourcing City Free Zone

٣١ يناير How to renew a trade license in Dubai

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How to renew a business license in Dubai is a vital process to ensure businesses continue to operate and comply with legal requirements. Dubai, as a global business hub, sets precise standards to ensure that companies adhere to laws and regulations. By renewing a business license, companies ensure that they maintain their legal activity and avoid potential fines or violations that may affect their reputation. In this article, we will review the basic steps for renewing a commercial license in Dubai , from submitting the necessary documents to verifying that the required conditions are met. We’ll also go over some important tips to make this process easier and ensure maximum efficiency and compliance.

Renewal of trade license in Dubai

Renewing a business license in Dubai is a process that requires following some specific steps and ensuring that all legal requirements are met. Here’s how to renew a trade license in Dubai:

Ensure license validity : Check the expiration date of your commercial license and make sure to start the renewal process before expiration to avoid fines.
Preparing the required documents :
- A copy of the expired commercial license.
- A copy of the valid lease contract for the commercial headquarters (it must be notarized and certified by the competent authorities).
- No objection certificate (NOC) from the relevant authorities if the business activity requires it.
- A copy of the Emirates ID card for owners and partners.
- Any additional documents that the Department of Economic Development (DED) may require.
Payment of fees : Pay the fees required to renew the commercial license. Payment can be made online through the Department of Economic Development portal or at authorized service centers.
Submitting the application : Submit the application to renew the commercial license online through the Department of Economic Development portal or by visiting one of the DED service centers.
Application Review and Approval : After submitting the application, the Department of Economic Development will review the documents and ensure that all requirements are met. If there are any deficiencies or problems, we will contact you to correct them.
Receiving the renewed license : After approving the application and completing all procedures, you can receive the renewed commercial license electronically or from the service center where the application was submitted.

Additional Tips:

Annual updates : Make sure to renew the lease and update contact information annually to avoid any problems when renewing the license.
Continuous follow-up : Regularly monitor the status of the renewal application online or by communicating with the Department of Economic Development.
Compliance with Laws : Make sure to comply with all local laws and regulations to avoid any fines or penalties.

By following these steps, you can easily renew your business license in Dubai and ensure the continuity of your business legally and smoothly.

Types of business licenses in Dubai

Among the most important points that must be raised about how to renew a commercial license in Dubai are also the types of commercial licenses. There are five types of commercial licenses in Dubai and each license differs in cost from the other license. Here are the types of commercial licenses in Dubai:

Type of license	the description
Commercial license	It is granted to companies that carry out commercial activities such as retail and wholesale, export and import, distribution, and warehousing of goods.
Professional license	It is awarded to individuals and companies that provide services based on professional skills and knowledge such as consulting, medical services, education, legal services, and information technology services.
Industrial license	It is awarded to companies that carry out industrial activities such as product manufacturing, goods assembly, production, and processing.
Tourist licence	It is awarded to companies operating in the tourism sector such as travel agencies, hotels, resorts, tour services, and tourist car rental companies.

This table shows the main classifications of commercial licenses in Dubai and the activities associated with each type.

Advantages of a trade license in Dubai

A business license in Dubai comes with many features that make it attractive to investors and entrepreneurs. Here are some of the key features of a trade license in Dubai:

Ease of establishment : Obtaining a commercial license in Dubai is characterized by speed and ease, with simple and flexible procedures for establishing a business.
Tax exemptions : In many free zones in Dubai, companies enjoy full tax exemptions on income and profits, which increases investment attractiveness.
Full foreign ownership : In some free zones, Dubai allows foreigners full 100% ownership of companies, without the need for a local partner.
Strategic location : Dubai is located in a distinctive geographical location linking the East and the West, which facilitates access to regional and international markets.
Advanced Infrastructure : Dubai has a world-class infrastructure that includes modern airports, advanced ports, and excellent road networks, which facilitates business operations.
Economic diversification : Dubai has succeeded in diversifying its economy away from oil, creating broad opportunities in various sectors such as trade, tourism, financial services, real estate, and technology.
Advanced business environment : Dubai provides an advanced business environment with laws and legislation that support growth and investment, ensuring the protection of investors’ rights and facilitating business operations.
Effective government services : Dubai provides advanced digital government services that help facilitate administrative and commercial procedures, which reduces the time and effort spent dealing with government agencies.
Financing Opportunities : Dubai provides a wide range of financing options and financial support for companies through various banks and financial institutions.
Attractiveness of the labor market : Dubai provides an attractive work environment for skilled and specialized workers from all over the world, which contributes to achieving high performance for companies.
Encouraging policies : Dubai offers many incentives and encouraging policies to support emerging companies and small and medium enterprises.

These features make a business license in Dubai an excellent choice for investors and entrepreneurs looking to establish and develop their businesses in a prosperous and sustainable business environment.

Cost factors for a business license in Dubai

The cost of a business license in Dubai is affected by several factors, and can vary significantly based on several criteria. Here are the main factors that affect the cost of a business license in Dubai:

Type of business activity : The cost of the license depends greatly on the type of business activity you intend to undertake. Some activities may require special permits and additional fees.
Type of license : Commercial license costs vary based on the type of license (commercial, professional, industrial, tourism). Each type of license has different requirements and costs.
Geographical location : Choosing the geographical location of the work plays a major role in determining costs. Free zones often offer tax incentives and breaks, but can be expensive in terms of rent and service charges.
Office or store size : The size and type of commercial space required can greatly affect the overall cost. Renting offices in prime locations is more expensive compared to subsidiary locations.
Number of partners and shareholders : Each additional partner or shareholder requires additional fees to register it within the commercial license.
License Insurance : The insurance fees required to secure a commercial license may vary based on the type and size of the business.
Government services fees : These fees include the costs of government transactions such as issuing a license, renewing it, updating data, and other services provided by government departments.
Visas and residence permits : The number of visas and residence permits required for employees can raise overall costs significantly.
Additional service costs : Some businesses may require additional services such as environmental permits, health and safety permits, or building permits, which add to the overall cost.
Legal and administrative consulting costs : You may need additional legal consulting or administrative services to establish your company, which can increase the cost.
Fees for agencies and consulting companies : If you use agencies or consulting companies such as Itqan to assist in company establishment procedures, the fees for these services will be added to the total cost.

The costs of obtaining a business license vary based on these factors, and it is essential to conduct a detailed feasibility study and calculate all potential costs before starting the process.

Conditions for obtaining commercial licenses in Dubai for investors

The importance of commercial licenses in Dubai

Business license authorities in Dubai

The entity responsible for issuing the commercial license in Dubai is the Department of Economic Development, but there are other local authorities responsible for issuing permits for some economic activities, as there are conditions and controls that regulate the process of practicing these activities.

Examples of these activities include: land transport, the Roads and Transport Authority, law and legal consulting activities, petroleum and petroleum activities, contracting activities and engineering consultations. If you have an inquiry regarding how to renew a commercial license in Dubai, do not hesitate to contact us and one of our experts will help you.

In conclusion, a business license in Dubai is an essential key to successfully establishing and managing a business in one of the most vibrant business environments in the world. Thanks to its advanced infrastructure, government facilities, and tax exemptions, Dubai provides an ideal environment for investors and entrepreneurs to achieve their goals. By understanding the requirements for obtaining a trade license and ensuring that all legal conditions are met, new businesses can take advantage of the vast opportunities that Dubai has to offer. Attention to detail and employing professional support from consulting firms such as Itqan can contribute to accelerating the establishment process and ensuring sustainable success. Ultimately, obtaining a business license in Dubai is not just an administrative procedure, but rather a strategic step towards achieving growth and prosperity in a competitive global market.

Frequently asked questions about commercial licenses in Dubai

What business licenses can be obtained in Dubai?

In Dubai, different types of business licenses can be obtained including a commercial license (for commercial activities), a professional license (for certain services), an industrial license (for industrial activities), and a tourist license (for tourism activities).

What documents are required to obtain a business license in Dubai?

Documents usually require a valid passport, personal photographs, business lease contract, license application form, and sometimes additional certificates depending on the type of activity.

Can foreigners own 100% of a company in Dubai?

Yes, in many free zones in Dubai, foreigners can 100% own companies without the need for a local partner. But in Limited Liability Companies (LLC), a local partner who owns 51% of the shares is required.

What is the cost of obtaining a business license in Dubai?

The cost of a business license varies based on the type of activity, location, and size of the office. Costs include license issuance fees, activity registration fees, and office rental costs.