Initiating a business in Dubai has particular needs. The very crucial thing is the issuance of a business license in Dubai for this objective. Any corporation that wishes to begin a business in any portion of the emirate requires to look for approval from the concerned authorities by attaining a business license. After obtaining this license, you can smoothly initiate your venture in the Dubai market.
But the tenure of a business license isn’t unlimited. These business licenses are granted for particular time tenure as per the kind of business. Prior to completing the duration of a license, this is essential for ventures to renew their business license to constant the business activity in the emirate.
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Although., a grace duration is also obtainable but is good to renew the license prior to the expiration date because this can take additional time because of the emergence of many issues. Just like obtaining a license for the first time, the major authority needed for the renewal procedure is also the Economic Department of the emirate.
But in terms of a particular sort of business activity, businessmen also need permission from other authorities. A vital term needed for the business license renewal is the tenancy agreement of any corporation. This is compulsory for these corporations for having a legal tenancy agreement prior to making an application for business license renewal.
Steps to Renew Your Business License in Dubai
Following are the major moves that you need to be taken for a business license renewal.
• The starting move is to present the application to the Economic Department. There’s an individual Department of Business license renewal in DED. Please fill out this application completely and ensure that it is attended to by all important papers.
• After getting the application, Economic Department would hand over the transaction number to the businessman. This transaction number is utilized as a reference prior to obtaining a license renewal.
• In a final move, the owner would utilize this payment voucher for making the business license cost. After making the payment, the businessman would be able to get a renewed license from the authority.
What Paper Goes Behind Renewal of a Business License in Dubai
• Ejari Registration
For business license renewal, this is essential to hold a certificate of registration from EJARI. This is mandatory to hold a tenancy agreement that is sanctioned by EJARI, otherwise, a fine would be applied to you.
• Tenancy Contract with Validity
In order to renew a business license, you should hold a tenancy agreement that still has a legality of one month or more. For making an application you should check Fest and verify your tenancy agreement. In addition, this agreement should be confirmed by EJARI. In case your agreement doesn’t have a legality of around one month, the renewal of your business license request can be rejected under lawful duties.
• Old Business License
You have to attach a copy of your prior business license. You can’t form an application for renewing a business license in case you do not hold the essential approvals that permits you to run out your business activities in the country.
• BR/1 Form
BR/1 form is a license renewal form that should be filled out and presented to initiate the procedure. You should type this form with the signature of your current partners and present it to the Economic Department for approval.
• Copy of Passport of Partners
A copy of the passport of your current business partner should be essentially presented to demonstrate the shareholder included in your venture. In case your venture hasn’t a business partner, you will present yours.
Consequences of Not Renewing Your Business License in Dubai
A legal business in Dubai free zone or mainland is one of the vital elements that make sure business runs in the United Arab Emirates. Renewal of a business license timely saves you from the possibility of blacklisting or banning your corporation. Always maintain a check on your agreement and business license. If you are unable to renew the business license in Dubai, this can cause legal penalties that are –
Penalties – The Economic Department has all lawful rights to apply monetary penalties on corporations that do not renew their business licenses. A fine of AED 5,000 can be applied to the units that run without a business license. Moreover, a fine of AED 250 / month is imposed on traders who trade after the expiration of a business license.
Blacklisting Business – The corporation that runs without a business license or with an expired one exposes its business to the hazard of being blacklisted. It would direct to the ending of the function of the whole corporation.
Banning the Corporation – In case you run your venture with an illegal business license in the country, the Economic Department can close the corporation at any moment. It is a serious result, and you cannot be able to re-form your venture in the emirate.