Question 1

Q-1. What is the grace period for Trade License Renewal in the UAE?

Accepted Answer

Across the UAE, most mainland and free zone authorities offer a 30-day grace period after your Trade License expires. It's strongly recommended to renew before the expiry date to avoid penalties, license suspension, or delays in business operations. Grace period rules may vary slightly by emirate or free zone authority.

Question 2

Q-2. How much does it cost to renew a Trade License in UAE?

Accepted Answer

Trade License Renewal costs in the UAE can range from AED 5,500 to AED 25,000 or more, depending on the license type (commercial, professional, industrial), jurisdiction (mainland or free zone), business activity, and office requirements. Each emirate and free zone may have its own pricing structure.

Question 3

Q-3. Can I renew my Trade License online in UAE?

Accepted Answer

Yes, most authorities in the UAE offer online portals for Trade License renewal. For mainland businesses, the Department of Economy and Tourism (DET) provides online services. Free zone companies should use their respective authorities’ online platform, such as the RAKEZ Portal for Ras Al Khaimah businesses.

Question 4

Q-4. What documents are typically needed for Trade License renewal?

Accepted Answer

Required documents generally include a copy of the current Trade License, a valid Ejari certificate (for mainland), passport copies of all partners or shareholders, and a completed renewal application form (such as BR/1). Additional documents may be needed depending on the business activity.

Question 5

Q-5. What are the penalties for not renewing a Trade License on time?

Accepted Answer

Failure to renew on time may result in fines, operational halts, bank account freezes, and inability to sponsor visas. Penalties can include AED 250 per month for delays, and in severe cases, the company may be blacklisted or face additional legal consequences.

Question 6

Q-6. Can I change my business activity during the renewal process?

Accepted Answer

Yes, it is possible to modify your business activity during the Trade License Renewal process. However, this may require approval from relevant authorities, which could lead to additional paperwork and fees, depending on the nature of the activity change.

Question 7

Q-7. Which department issues Trade Licenses in the UAE?

Accepted Answer

In the UAE, mainland trade licenses are issued by the Department of Economic Development (DED) or its equivalent in each emirate (e.g., Dubai DET, Abu Dhabi DED, Sharjah Economic Development Department, etc.).
For free zone businesses, the trade license is issued by the respective Free Zone Authority where the company is registered.

Question 8

Q-8. How long does the Trade License Renewal process usually take?

Accepted Answer

Trade License Renewal typically takes 3 to 7 working days, provided all documents are in order. For mainland businesses, renewals can sometimes be processed in 2 to 3 days when submitted online. Free zone renewals may take longer depending on the authority’s processing time.

Question 9

Q-9. Do I need a physical office to renew my Trade License?

Accepted Answer

For mainland businesses, having a physical office is a mandatory requirement for Trade License renewal, with a valid Ejari registration. Some free zones offer flexible desk options or waive office requirements for businesses with limited visa allocations.

Question 10

Q-10. What if my company is not currently operating? Do I still need to renew the Trade License?

Accepted Answer

Yes, even if your business is not actively operating, you must renew your Trade License to remain compliant with UAE regulations. If you don’t intend to continue operations, you should cancel or liquidate the license to avoid accumulating fines and liabilities

Trade License Renewal in the UAE

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