Every company established in Dubai, Abu Dhabi, Sharjah, or anywhere across UAE will need a trade license. It is one of the principal requirements to execute business in the region. According to the Dubai Economic Department (DED), a trade license is a legal certificate that allows businessmen to execute their business in the UAE.
This legal document will comprise of all activities details that the holder will need to perform in their businesses. However, businessmen can only perform activities mentioned in the trade license. Involvement in any other activity will be considered illegal.
The trade license remains valid for one year only. It is necessary to renew it every year at least one month before its expiry date.
What are the types of trade license? What steps are involved in getting a trade license? And what is the procedure of trade license renewal? These questions together with other valuable information will be discussed in sections below:
Types of Trade License
The UAE authorities give three types of trading licenses depending on the activities of the business. It includes commercial, industrial, and professional business certificates.
- Commercial Trade License
A business that involves trading, buying or selling must need to acquire a commercial license. It may also involve businesses like banking, advertising, insurance brokerage, logistics, car rental services, and real estate.
All of these above mentioned or relevant companies will fall under the commercial group.
- Industrial Trade License
Companies that are involved in manufacturing or industrial procedure will need an industrial trade license. All pharmaceutical and medical manufacturing companies come under this category.
Basically, any business that is involved in transforming a natural resource into goods is labeled as industrial. It includes vast activities like meat processing, canned goods, bread, clothes, batteries, and other activities. Similarly, paper manufacturing, chemical, and other petroleum goods also need an industrial certificate.
- Professional Trade License
A company or an organization that involves in delivering professional services will need to hold a professional trade license. It includes vast services like consultancy, event management, nurseries, salons, laundry services, sports, event management, medical clinics, and others.
Generally, all businesses acquire a license from the Department of Economic Development (DED) authority for establishing a business in Dubai. There are certain categories that need to obtain special permission from different authorities.
For example, a company involved in manufacturing pharmaceutical or medical products should take consent from the Health Ministry. Likewise, a manufacturing business should seek the permission of the Ministry of Finance and Industry.
Obtaining a Trade License in Dubai
The process of obtaining a trade license includes a series of steps.
In the first step, an applicant should select the type of business they are performing. As it is mentioned in the above section, these are commercial, industrial, and professional.
After that, a person should select all activities that will be a part of the business. There is an option of selecting 10 activities per license. Next, an applicant should decide the appropriate name of their company/business.
After that, an application form should be submitted for initial approval. Besides submitting an application, a candidate should go for external approvals if their business involves certain activities.
The next steps involve gathering all requisite documents. It includes the Memorandum of Association and other approved documents from pertinent government authorities. A candidate should also decide a company/business location along with acquiring an attested Ejari tenancy contract.
Once all documents are arranged, a candidate should proceed to application submission to the DED. At the last stage, an applicant should clear payments for the license.
After getting a UAE license, you would need to renew it every year. Otherwise, the license will be expired. In the case of delaying a renewal process, a company will earn fines that will increase with each passing month.
However, in severe cases, it can even ban your license while freezing all your business activities.
Trade License Renewal in Dubai
If you are looking for trade license renewal Dubai procedure, this part contains valuable information:
Documents required for Trade License Renewal
Here is the list of documents that you will need while applying for trade license renewal Sharjah:
- A BR/1 form in Typing
- Ejari Registration Certificate
- Photocopy of Tenancy Contract
- Photocopy of existing business trade license
- Photocopies of all business partners’ passport
A business license renewal process involves the following steps:
Checking Tenancy Contract
At the time of submitting an application, your tenancy contract should be valid for at least three months. It also needs to be attested by ejari for trade license renewal.
It is crucial to first check for the tenancy contract before applying. In the case of having similar dates, you will need to renew the tenancy contract as well. Your renewed tenancy contract should be attested by Ejari as well.
Acquiring licensing approval
As mentioned previously, in order to perform certain businesses, you need to take approval from concerned authorities for license renewal.
For example, a taxi driver will need approval from the Road and Transport Authority of Dubai. Similarly, a restaurant owner would need consent from the Food Safety Department along with other municipality permissions.
It is mandatory to obtain all these approvals before you go for a trade license renewal in Dubai
Submitting renewal application
Once you gather all required documents and approval, submit the Dubai DED license renewal application. The documents involve the tenancy contract, the Ejari attestation, photographs of business partners, and typed renewal form.
Obtaining fee voucher
After you submit the application, the DED will give you a payment voucher or a transaction number. The transaction number is crucial as you would need to use it as a reference number until you acquire the renewed license.
You should pay the trade license renewal fee using the provided fee voucher. After clearing payment, your renewal process is accomplished. The DED will send you a renewed trade license.
It is important to timely renew your license as any delay can lead you towards penalties.
Ways of renewing trade license in Dubai
The Dubai Department of Economic Development is striving to make the trade license renewal process easy and simple. They are continuously upgrading the procedure to enhance efficiency and simplicity.
So, in order to undergo trade license renewal process Dubai, you can opt for any of the three ways. These methods are offline, online and automatic renewal systems.
You can select any of the procedure according to your convenience. However, for online renewal, it is mandatory for a company owner to have a prior account.
This is the whole procedure you need to perform for renewing a trade license. Though it seems difficult, it involves a series of simple steps. It only needs punctuality and small efforts to update legal documents regularly.
Moreover, in the case of Dubai, the DED has also tried to make the whole method less time consuming and well-organized.
In case you are facing difficulty with the business license renewal process, you can ask for help from consultants. There are various business advisors available. They perform this renewal process on your behalf from representing in front of DED to the fee submission.
You would only need to keep checking the status. Regardless of the procedure, you choose for license renewal, it is important to update it on time.