Renewing a commercial license in Dubai is a vital step to ensure that businesses continue legally and without interruption. The emirate requires companies and commercial establishments to renew their licenses annually to ensure they comply with local laws and regulations, in order to avoid violations and fines. Renewal enhances regularity in the commercial market, and provides companies with the opportunity to update their information and expand their activities. The steps to renew a commercial license in Dubai include a set of procedures that business owners must follow, starting from preparing the necessary documents and paying the specified fees, all the way to obtaining final approval from the relevant departments.
Steps to renew a commercial license in Dubai
Renewing a commercial license in Dubai requires following a number of basic steps to ensure that businesses continue legally. Here are the steps to follow:
Ensure the validity of the license: Check the expiry date of the license to avoid any late fines.
Prepare the required documents: A copy of the old commercial license. A certified lease contract (Ejari) for the facility. A copy of the Emirates ID for partners.
Obtaining the required approvals: In some commercial activities, it may be necessary to obtain approvals from the relevant government agencies such as the Health Authority or Civil Defense.
Payment of fees: The fees for renewing the commercial license can be paid electronically through the Dubai Economic Portal or through authorized service centers.
Receiving the renewed license: After paying the fees and submitting the documents, the renewed license is issued electronically or you can receive it from the center.
Updating data: If there are any changes in the business activity or partners, the information must be updated with the Department of Economic Development. Following these steps carefully will help ensure that your business continues legally and smoothly in Dubai.
Advantages of renewing a commercial license in Dubai
Renewing a commercial license to establish a company in Dubai comes with many advantages that enhance business continuity and facilitate business operations. Here are the most prominent advantages:
Legal continuity: Renewing the license grants the company legal continuity, allowing it to continue its activities without being subject to fines or legal penalties.
Access to new opportunities: Companies that renew their licenses are eligible to enter government tenders and expand their business by obtaining new contracts and partnerships.
Enhancing trust and credibility: Renewing the license enhances the confidence of customers and partners in the company, which contributes to improving its reputation and increasing opportunities for cooperation.
Benefit from government services: Companies that renew their commercial licenses have access to many government services and facilities such as financing and investment support.
Flexibility in expanding activities: When renewing the license, the company can modify or add new business activities in line with its future plans.
Avoid penalties and fines: Avoid imposing financial fines or stopping business activities, as delaying renewal may result in penalties that negatively affect business continuity. Regularly renewing the commercial license ensures smooth business continuity and helps achieve growth and expansion in the market.
Types of Commercial Licenses in Dubai
In Dubai, there are a variety of commercial licenses that allow individuals and companies to practice different commercial activities based on the nature of the business. Below are the types of commercial licenses available:
Commercial License: Granted to companies that practice commercial activities such as import, export, wholesale or retail. This license includes activities related to the sale of goods and products.
Industrial License: Granted to companies that manufacture products and convert raw materials into finished products. These activities include factories and companies engaged in industrial production.
Professional License: Granted to individuals or companies that provide specialized or consulting services, such as lawyers, accountants, engineers, doctors, and other professionals.
Tourism License: Granted to companies operating in the field of tourism, such as travel organizing companies, hotels, travel agencies, and everything related to tourism activities.
Agricultural License: Granted to companies operating in agricultural activities, such as farming, livestock breeding, fishing, and other activities related to agriculture.
Freelance License: Designed for individuals who wish to work independently in areas such as graphic design, writing, media, translation, and other activities that do not require the establishment of a full-fledged company.
Each type of license requires specific procedures and conditions, and the license specifies the activity permitted to be practiced in Dubai, whether within the emirate or within the free zones.
Cost factors of a commercial license in Dubai
The cost of obtaining a commercial license in Dubai depends on several different factors related to the nature of the commercial activity and the location of the company. The following are the most important factors that affect the cost of a commercial license:
Type of commercial license: The cost varies based on the type of license (commercial, industrial, professional, tourism). Some activities require special approvals, which may increase costs.
Company location: Fees differ between establishing companies within Dubai or in free zones. For example, free zones offer benefits such as tax exemption, but company establishment fees may be relatively high.
Number of commercial activities: The more activities added to the commercial license, the higher the fees imposed on the license. Some activities require additional approvals from specialized government agencies.
Number of partners: Having more partners in a company may increase the fees associated with issuing a trade license, as additional fees are charged for each partner.
Government approval fees: Some activities require special approvals from different government agencies, such as the Health Authority or Civil Defense, which increases costs.
Lease contract costs (Ejari): Renewing or issuing a license requires a valid lease contract, and the cost of the property or office can be a significant part of the total cost.
Financial guarantees: In some cases, companies may be required to pay financial guarantees as part of the costs, especially for companies operating in sensitive fields such as contracting.
Additional services: Taking advantage of additional services such as legal advice, or establishing a company in Dubai through brokers, may lead to increased costs.
Annual renewal fees: After issuing the license, it must be renewed annually for a fee that varies depending on the type of business activity and the location of the company.
These factors combined determine the final cost of obtaining a trade license in Dubai, and must be taken into account when planning to establish or expand a business in the emirate.
Etqan Company’s services for renewing commercial licenses in Dubai
Etqan Company provides a range of integrated services for renewing commercial licenses in Dubai, making it easier for companies to continue their commercial activities legally and regularly. These services include:
- Etqan helps customers collect and prepare all the documents necessary to renew the license, including rental contracts (Ejari), personal documents, and any additional required approvals.
- The company provides a service to follow up on obtaining the necessary approvals from various government agencies such as Civil Defense, the Health Authority, or any entity related to the commercial activity.
- Etqan submits renewal requests through the electronic portal of the Department of Economic Development in Dubai, which saves customers time and effort.
- The company provides a service to pay the required fees on behalf of customers, which facilitates the renewal process and avoids delays or fines.
- Etqan provides specialized legal consultations to ensure that the business activity complies with local laws and regulations, including guiding customers on any necessary changes during license renewal.
- Etqan provides a service to remind customers of license renewal dates, to ensure that renewal is not delayed and avoid fines or stopping commercial activity.
- The company provides a data update service in the event of any changes in the business activity or partners during the renewal process. Through these services, Itqan Company ensures that the commercial license renewal process is easy and fast, allowing business owners to focus on developing their business activities without worrying about administrative procedures.
In conclusion, renewing a commercial license in Dubai is an essential step to ensure the continuity of commercial activities in a legal and regular manner. The renewal process is not just a routine procedure, but rather an opportunity for companies to ensure their compliance with government requirements and update their data in line with market developments. Commitment to renewing the commercial license on time protects companies from fines and penalties, and enhances their credibility and trust with customers and partners. With the advanced electronic facilities and government services in Dubai, the renewal process has become easier and faster, supporting the thriving and sustainable business environment in the emirate.
Frequently asked questions about renewing a commercial license in Dubai
Can a commercial license be renewed electronically?
Yes, the license can be renewed through the website of the Department of Economic Development in Dubai or through its smart applications.
Are there any fines for late license renewal?
Yes, financial fines may be imposed for late license renewal, and they are determined based on the period of delay.
Can the commercial activity be changed when renewing the license?
Yes, it is possible to change the business activity or add new activities when renewing the license, but this may require additional approvals and other fees.
