Renew Trade License in UAE
A trade license or a license to do business is one of the most important documents required for doing business in UAE. Any company which is established in UAE has to renew its Trade License on an annual basis. The license allows the companies to undertake the business activities specified in the company documentation. Now the question arises that, how to renew a license in UAE.
There are numerous online and offline portals available to the company management of the concerned Government Department where a company can get the license renewed. Three simple steps are involved in the renewal of the trade license. Here are the steps involved in the renewal of the trade license in the UAE
Firstly, companies must ensure that their tenancy contracts are not expired and the validity is still remaining for at least 1 month. In case if the tenancy contract is lapsed then it should be renewed prior to applying for the trade license.
Submit an application with all the necessary documents. PMC Solutions DMCC ensures the correct filing of the application along with the required documents. The PMC Solutions DMCC is familiar with the work culture of the department thus it saves time and energy of the management.
The final step in license renewal in UAE is to make the necessary payment of fees. On submitting all the documents properly, the department issues the payment voucher within 3-4 days. Once the voucher is received you can make the payment through any mode of payment.
The renewed trade license is issued immediately after the payment is made.
The above-stated procedure is designed for a general renewal where it is assumed that neither the tenancy contract is changed nor there is a new sponsor. If any of the two agreements is changed then there is a different procedure for trade license renewal.
Documents Required for Trade License Renewal
Here’s the list of document required for the renewal process
- Duly filled application form determining the contact number, the fax, the e-mail, and the P.O. Box.
- Copy of the License
- For the branch of a foreign company, a letter from the Ministry of Economy is required for the renewal of the branches of the foreign countries
- Photocopy of the office lease agreement.
- NOC issued by the Department of Lands and Properties to business houses that are granted land by the government.
- Tenancy Contract & Ejari
- Passport Copies of shareholders/Partners/Directors of the Business
Penalties imposed on a company if it fails renewal of the trade license
The expiry of the trade license can lead to various penalties and fines. The penalties can be monetary and can lead up to forfeiting of the business. The authorities can direct the company to seize all the transactions and visas and make them null and void.
Monetary Penalties – Authorities in the UAE can impose several penalties and sanctions if the company does not renew its trade license. Practicing business activities without a license can attract a heavy monetary penalty.
Black Listing of Company – Continuation of the business activities without the renewal of the trade license can possibly lead to the blacklisting of the company and would stop all the commercial activities the company is undertaking.
Restriction on the Expansion of Business – The business houses with an expired license are not permitted to expand their business. It is essential to have a valid trade license and along with clear plans of expansion.
In all you can say that an expired trade license could destroy the business and company.
Service of Business Consultancy Agency
PMC Solutions DMCC offers complete company setup solutions. The service includes company registration, licensing, and renewal of the trade license thereafter.
The UAE Authorities have made the renewal of trade license quite easy and simple, but handling these procedures can sometimes become time-consuming and costly. PMC Solutions DMCC provides these services for nominal fees so that the entrepreneur can focus on the business and does not get engaged in unproductive activities.
Contact us for the renewal of a trade license in UAE.