What is the Procedure for Dubai Mainland License Renewal?

Dubai Mainland License Renewal

Dubai is one of the major countries that has established itself as the business hub of the world. Many entrepreneurs and investors are looking this as an opportunity to setup their business in Dubai as the country offers a huge number of benefits. After busines setup, Dubai mainland license renewal is a yearly process. Company has to renew its business license every year without any missout.

Now, applying for a license for mainland business setup in Dubai is more beneficial as compared to other types of business entities. There are numerous advantages to establishing a business in Dubai mainland, including a wide range of trading options, unlimited visa grants, and much more.

One of the most significant advantages of a mainland business setup is that you can now have now you can have 100% ownership in Dubai for your mainland business even as an expat. UAE. Furthermore, this is the most effective way to do business in the UAE and allows you to open offices in any location. This also broadens your company’s reach across the country.

Businesses must have a valid business license to operate in the UAE, as in any other country all over the world. Before starting a mainland company formation in Dubai, every firm must obtain a trade license so that you don’t have to suffer any actions later or maybe face a heavy penalty if you conduct business without a trade license.

Who handles Dubai mainland license renewal?

Now you might be wondering which body handles the issue and the renewal process of a mainland business setup in Dubai. So that would be the Department of Economic Development (DED). Yes the body is whole sole responsible for issuing, regulating, and renewing mainland trade permits in Dubai.

A trade license in Dubai must be renewed every year from the Dubai Economic Department (DED). You have the option of renewing your Dubai mainland business license electronically or manually as an entrepreneur. However, DED has launched a lot of new initiatives that can help you save a lot of time, money, and extra efforts.

So what all documents must you submit? To answer all of your questions, we have compiled all the necessary steps that need to be followed for Dubai mainland license renewal.

What are the paper works that goes into the renewal of the license in Dubai in 2022?

It is best to have all of the necessary documents ready before applying for renewal of a mainland business in Dubai to ensure a smooth filing process.

Make sure if you have your checklist ready before applying for license renewal-

Ejari registration Ejari is an online registration system that requires all the rental or lease contracts in Dubai to be registered at its portal. Hence, it is necessary to have an Ejari registration certificate in order to renew your business license. Moreover, a tenancy certificate approved by Ejari is required, or a fine will be imposed.
Tenancy contract To renew the license, you must have a tenancy contract that is still valid for at least one month. This contract must be confirmed by Ejari. If your contract does not have a validity of at least one month, your trade license renewal application can be turned down under legal obligations.
Copy of the old trade license To renew your license, you must attach a copy of your old one. If you don’t have the necessary permits to conduct business in the UAE, you won’t be eligible to apply for a trade license renewal.
BR/1 form The BR/1 form is a license renewal application that must be completed and submitted in order to begin the process. You must fill out a BR/1 form with existing partners’ signatures and submit it to the DED for approval. Before submitting, all documents must be attached to this form.
Passport photocopies of all business associates To demonstrate the stakeholders involved in your business, you must submit a passport photocopy of each business partner.
You can submit your renewal application to the DED along with all of these required documents.

What are the steps to renew your license?

If you are using an expired license for trading in Dubai, it can cause issues with your business operations. To ensure that your company meets the desired compliance standard, you must renew it on time.

This is how you can renew your mainland company license in Dubai-

  • Verify the validity of your tenancy agreement.
  • Submit your application to the Department of Economic Development (DED)
  • DED will provide you with a payment voucher.
  • Make your payment to DED and get your renewed license.

What is the license renewal fee in Dubai?

The expense of renewing your trade license for a mainland company formation in Dubai is determined by many factors, including your business setup, location, activities, business size, jurisdiction, and others. Furthermore, the type of license you have for additional approvals impacts the actual cost of your license renewal. To get a better idea of the investments that will be required for your business, you must take advantage of a cost calculator.

Calculate your startup costs with cost calculator for company setup in UAE

How much investment will you need to establish a business? Calculate your business’s startup costs so you can seek funding, attract investors, before launching a business in Dubai. Preparation and pro activeness is the key to a successful business. You will have bills to pay before your company opens its doors. Understanding your costs will aid in your launch’s success.

How can a cost calculator for company setup in UAE assist you with your startup costs?

  • Calculate your profits
  • Analyze the break-even point
  • Secure loans
  • Attract potential investors
  • Calculating tax deductions that help you save money

What are the challenges that a company faces while renewing their license?

The filling process for a license renewal is not that easy and many new entrepreneurs might face a lot of challenges while doing so. Some of the common challenges are-

  • Heavy penalties due to late filling
    A major concern that might cause serious repercussions is that when you fail to renew your business license, your company may face heavy monetary penalties and you may have to pay a huge amount of money as fine. So it is better to fill in your license renewal form on time.
  • Maintain a clean record
    Another challenge one might face is the obligation of maintaining a clean record for the company. In case you fail to do so, companies with expired licenses are not permitted to expand and this could lead to a shortage of a good clientele for you.
  • Being organized with the paperwork
    Many companies fall short of proper administrative guidance and even if they are keeping it organized in the beginning they get carried away till the process is over. And this could cost you later because the major portion of the renewal procedure depends on your documentation.



What happens if I don't renew my trade license in dubai?

After your trade license expires, you have a 30-day grace period to renew it. You will be charged AED 250 if you do not renew or cancel your license within that time frame. If your license isn't renewed, your company could face legal consequences, besides large fines and penalties.


Is there any grace period on trade license renewal?

Dubai mainland license renewals have a 30-day grace period. After this date, you will be subject to fines that begin at AED 250 and quickly escalate into the thousands of dirhams.


Can I renew my trade license via sms?

The Department of Economic Development (DED) has launched a new initiative that will allow business owners to renew their licenses automatically via text message (SMS). The owners will simply need to send a text message to '6969,' and if all of the DED requirements are met, they will receive a payment voucher to renew their license.


How can I check my trade license status in Dubai?

You can check the status of your license online by simply the official website of E-services Dubai and check your status from the license renewal section of the menu by entering your login credentials.

Get professional assistance from RadiantBiz

When you have the right business consultant by your side, the process of license renewal becomes easy and streamlined. It is not difficult to renew your trade license. You can learn about the process ahead of time to avoid being tricked.

Also, double-check your license renewal application for errors before submitting it. When renewing your trade license, it is a good idea to consult a mainland company formation specialist in Dubai like RadiantBiz for a smooth and hassle-free renewal process.

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