Dubai is an opportunistic market for business setups, with well regulated laws which are strictly implemented. The government of Dubai regulates a massive database which is highly protected. The authorities monitor the same from time to time to ensure no fraudulent activities occur and ensure the businesses are carried out smoothly.

Importance of Licensing

Licensing renewal is an administrative activity which legally permits the business to carry out business operations in a regional jurisdiction. In Dubai, the business license is valid for a year and must be renewed on an annual basis. Failure to renew the license will result in a penalty from the Department of Economic Development (DED), Dubai, or may even lead to freezing the company’s business activities or ban the company. DED strictly monitors all the entities in Dubai. Hence, license renewal should be taken seriously while doing a business in Dubai. There are 3 types of business licenses,

• Professional License
• Commercial license
• Industrial license

Steps involved in renewing Trade/Business license in Dubai

Reviewing Tenancy Contract

The applicant’s tenancy contract must be valid for more than three months from the date of application of license renewal. Renewal of the tenancy contract should be done first if it is due during the renewal process. Tenancy contracts are applied for through EJARI- an online registration system of the Real Estate Regulatory Agency (RERA), requiring all Dubai rental or lease contracts to be recorded at this portal. This system is developed to legalize the relationship between tenants and landlords in Dubai.

Acquiring permits and approvals for your business

Different agencies and municipal bodies provide the required permits depending on the type of business in Dubai. Depending on the type of business, different permits and licenses should be acquired. For example, in the case of a food manufacturing business, the Food Safety Department’s permission is mandatory. At the same time, if it is a transit-based business, you should procure the Road Transport Authority’s permit. The procured permits and licenses are submitted to the DED for renewal of business licenses.

Submitting documents to DED

The following documents need to be submitted to the DED

• Tenancy Contract (valid for three months and more)
• EJARI Attestation
• Renewal Form to the DED in Dubai
• Duly Filled BR/1 Form
• Passport copies and Photographs of all business partners
• Copy of existing Business License

Acquiring Transaction Number or Payment Voucher from DED

DED provides applicants with a unique transaction number after duly verifying all the documents. It is also known as “Payment voucher“. This unique number is valid until the renewal process is complete and is valid only on the current process. It cannot be used for the next renewal period.

The necessary payments for renewal of the license are carried out using the transaction number or payment voucher. The applicants should complete the entire process before the expiry of the permit. Late renewal may lead to fines on the business entity.

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