Dubai in the United Arab Emirates is a great place to set up your business in. Thanks to its location and strong economic policies companies and businesses in Dubai have experienced immense success. Another important reason that businesses prosper in Dubai is due to its strict rules and regulations.
One of the ways the Dubai government ensures that its rules and regulations are being followed by businesses is through the business licenses it issues to the companies operating in its jurisdiction. However, once the license is issued businesses are not free to do what they want.
The business license update in Dubai is a yearly process to ensure that businesses are keeping up with the codes and maintaining good business ethics. In this guide, we will tell you the importance of getting your business license renewed as well as how you can get it renewed.
Documents needed for Business License Renewal in Dubai
Just as it was when you were getting the business license, you will need to collect a number of different documents to get your business license renewed in Dubai. Here is a complete of documents that you will need to get your business license renewed.
Copy of Your Old Business License
In order to get your new business license in Dubai you need to attach a copy of your old business license with the rest of the documents.
Valid Tenancy Contract
You also need to attach your tenancy contract indicating you still possess the office space for your business. Also, the tenancy contract needs to have at least one month of validity left and without it, your business license will not be renewed.
This must be verified beforehand and you should always ensure that you have enough time left in your tenancy contract before you start the business license renewal process in Dubai.
Ejari Registration Certificate
With your tenancy contract, you also need to attach your Ejari certificate indicating that your tenancy contract has been verified by the Dubai Land Department (DLD). You would have gotten this certificate when you first got your tenancy contract verified through the Real Estate Regulatory Agency (RERA).
BR/1 Form
In order to get your business license renewed in Dubai, you need to fill in the BR/1 Form. You can get it from the Dubai Department of Economic Development (DDED) and it must have the signatures of all the partners in the business and is then submitted to DDED along with other documents.
Copies of Valid Passports
You also need to submit copies of valid passports and visas for all the partners in the company. If the company has a sole proprietor, then only his documents need to be submitted.
No Objection Certificate (NOC)
In some cases, you may be asked to produce a No Objection Certificate (NOC) from your sponsor. However, this might be done under special circumstances.
Costs to Renew Business License in Dubai
Considering that there are different types of business licenses and other costs associated with the renewal process it is difficult to tell the exact cost. But on average the cost of renewing the business license in Dubai ranges between AED 8,000 to AED 15,000.
Dubai License Renewal Process
The process to renew business license in Dubai is very simple and straightforward and you can do it simply by following these steps.
1. Check the Expiry Date
The first step is to check the expiry date on your previous business license and ensure you have sufficient time to get your license renewed before the old one expires. Because if you can’t there can be serious complications.
2. Check for Outstanding Fines
Before filing your application with the Dubai Department of Economic Development (DDED), make sure that there are no outstanding fines or dues that need to be paid.
3. Check Tenancy Contract
Next, make sure that your tenancy contract is still valid for at least more than one month before the filing of your application with DDED as it is a requirement, and without it, your license will not be renewed.
4. Gather All Documents
Now gather all the necessary documents together from the list mentioned above and make sure nothing is missing or expired. Also, make sure that you have the BR/1 form and you have filled it properly.
5. Fill out the DED Application
Now it is time to fill out the actual application and you do this through the e-Services website here. After opening this link click on the renew license option and next sign in either with your username/password or the UAE Pass.
6. Pay the Fee
After filling in your application at the DDED, and submitting your documents, you need to pay the fee and you are done.
After completing the renewal process, all you need to do is wait and your license will be renewed in approximately 2-3 business days.
Important Things to Remember Dubai License Renewal Process
When filling out your renewal application there are a few key things that you need to remember and they are as follows.
- If you have made any changes to your business activity mention it in the application.
- If the partners or shareholders in your company have changed, mention it and provide updated data along with documents.
- The same goes with your sponsor, if any changes are made there, mention it with your application.
- Lastly, if you have made any changes to the structure of your business, mention it in the application.
Implications of Not Renewing Business License in Dubai
It is illegal to run your business without a valid business license and if you are found doing that there can be serious consequences and they are as follows.
- You will be fined AED 250 to AED 500 every month with additional venalities up to AED 5000.
- The government will forcefully close your business and all operations will be ceased.
- You and your business can even be blacklisted, meaning you will not be issued a business license in Dubai in the future.
- Not to mention, all this will lead to a loss of credibility in the market with your clients and suppliers.
