Business License in Dubai – 3 Penalties, Renewal & Challenges

Business License in Dubai – 3 Penalties, Renewal & Challenges

Business License in Dubai - 3 Penalties, Renewal & Challenges

3 major penalties on an expired business license in Dubai

A Business Trade License or constitutional documents validating the entity and its existence are required for any business to regulate in the United Arab Emirates, regardless of whether the firm is located on the UAE’s mainland, in a freezone, or in a foreign jurisdiction.

Each year, these companies must go through the routine of renewing their trade licenses in Dubai and throughout the UAE.

In order to keep doing business in Dubai, you’ll need to renew your business license every so often. When it comes time to renew your business license, business establishment businesses in Dubai have simple and efficient solutions.

However, there are still cases where businesses fail to renew their licenses and face a variety of consequences as a result.

There are many potential problems that could arise if a company license is not renewed, but these are the three most significant ones:

Monetary Penalties

In Dubai, the Department of Economic Development oversees the granting of business licenses. Due to the authority’s incorporation of cutting-edge technologies including an online and SMS renewal system, businessmen in Dubai can quickly and easily renew their commercial licenses.

However, there are penalties for business owners who fail to renew their licenses, including fines of up to AED 5000 for operating a business illegally, AED 250 for failing to renew a license within the allotted time frame, and AED 2000 for operating a second office under an existing license without permission (all figures taken from the DED website).

Blacklisting of the Company

A company runs the risk of being blacklisted if it fails to renew its trade license yet continues to operate. A company’s ability to conduct business, as well as any visas or sponsors that may be associated with it, would be rendered null and void if it were blacklisted, and any investors or businesspeople associated with the company may be required to leave the country.

Restrictions on the Expansion of the Business

Sometimes business owners forget that their small business license needs to be renewed every year, and even if they remember in time to renew it, it could be too late by a month, which could prevent them from expanding in the future. Whether a company intends to grow, cease operations, or dissolve, a spotless track record is crucial.

Instantly renew your UAE business license at ReCorporate Business Setup. Get your business license renewed in Dubai or anywhere else in the UAE quickly and easily with our help in keeping track of your renewal dates and completing the necessary paperwork for the renewal procedure.

Whether you need help forming a company or registering a business name, ReCorporate Business Setup can help. To acquire the answers you need, just drop by one of our business centers, give us a call, or send us an email.

3 simple steps to renew business license in Dubai

The process of renewing a business license has never been simpler. In Dubai, a company’s license must be renewed every year. In just three easy steps, Dubai now allows business license renewals. Because of the DED’s (Dubai’s Department of Economic Development) recent policy changes.

It is possible to renew your company’s license on your own if you are a business owner or operator. The DED, Dubai’s Department of Economic Development, has proposed a number of new programs.

Such as the cutting-edge technological services and registered agents that facilitate the renewal of a Dubai business license. Business licenses in Dubai can be renewed through text message. Also, you can avoid unnecessary trips to the ministry offices and save time and energy by renewing your permit online.

These reforms were implemented to create streamlined corporate processes and a welcoming atmosphere.

3 Simple & Easy Steps to help you renew your business license in Dubai

Tenancy Contract – Validity Check:

A one-month lease term is the very minimum that should be included in the leasing agreement. If you want to prevent any delays in receiving a company license in Dubai, check the validity of your tenancy contract to make sure your firm can legally operate there.

Getting Business Activity Approval

Every industry and line of work has its own set of regulations and, in certain cases, official stamps of approval. A private medical clinic in Dubai must be certified by the Ministry of Health and Prevention, whereas a car rental agency or private motor vehicle business must obtain permission from the Dubai Road and Transport Authority (RTA).

So, before you seek for a business license, make sure you have the appropriate judicial or government department’s blessing to conduct the proposed business activity.

Renewal of the Business License

Coordinate your business’s certifications and renewal application in Dubai. There are multiple options for submitting your proposal to the DED.

  • Offline Renewal of the Business License

You can renew your company’s license with the Department of Economic Development (DED) through a variety of non-digital channels, including business service providers, authorized service agents, law firms, happiness lounges, and others.

  • Online Renewal of the Business License

Online business license renewal is just one of several e-Services offered by DED’s user-friendly and comprehensive website. You may save time and avoid unnecessary paperwork by renewing your company’s license online.

  • Auto-Renewal of the Business License

The Economic Department has started an auto-renewal process that could speed up the renewal in order to strengthen the investment and business climate in the country.

Sending an SMS with the license number to the number 6969 is all that is required to renew an investor’s license. The price of renewing a business license is texted to the owner. This charge can be paid by the company owners either physically or digitally.

Cause of Worry

If a Dubai business fails to renew its license on time or at all, it may face fines and potentially be put on a blacklist. Future business development plans may also be jeopardized. As a result, many UAE business owners consider outsourcing their company’s needs to a third-party service provider.

The expiration date of your company’s license isn’t the only thing to keep in mind. It takes more time to renew a business license if the necessary paperwork is incomplete. You should have complete faith in the legality of your leasing agreement and all necessary certifications.

It could be time-consuming to rush around to different government agencies at the last minute. Investors and businessmen think it’s advisable to hire a third party to handle the revitalization instead.

For Dubai’s businessmen, the DED has simplified the rules to an unprecedented degree. The administrative processes of a company are already simplified with the assistance of a provider of business establishment services.

The quality of company formation and regulation in Dubai is greatly enhanced by a business establishment service provider. You, the businessman, have instant understanding of the process and need worry about nothing.

Choose one of the most trusted names in UAE business establishment with ReCorporate Business establishment.

Business setup services like ReCorporate make it easier to register your firm and get required documentation from government agencies. We also issue and renew business registrations, monitor their expiration dates, and send out reminders before they expire.

You can effortlessly manage and run your enterprises with the help of ReCorporate Business Setup’s many administrative services. Contact our business advisors today for additional information, or submit a brief enquiry form and we’ll get back to you as soon as possible.

Business Obstacles in the United Arab Emirates

The UAE market has a lot of promise, but before you dive in, you should be aware of the many obstacles and unknowns that face business owners there. Due to the progressive developments and economic programs, company registration in Dubai or business setup in UAE is a welcome platform for investors.

However, there are pitfalls to avoid and obstacles to conquer, just as there would be at any large commercial destination.

Do your best to prepare for these common problems that may arise while doing business in UAE if you are a driven and devoted businessperson who is excited about the potential of this beautiful country.

Some of the Business Obstacles & Challenges in the United Arab Emirates

Here are the five most significant obstacles that UAE business owners will face:

UAE Business / Company Ownership

In Dubai and the rest of the United Arab Emirates, forming an onshore or LLC corporation requires a local partner. In addition, the norm requires that the UAE national own 51% of the company’s shares and the investor own no more than 49%. Some businessmen may have little trouble establishing trust and trustworthiness, but others may find it difficult.

Finding a Business Partner in the UAE

Therefore, the next difficulty is to locate an appropriate local business partner in UAE. A native UAE business partner is required for the vast majority of lawful commercial activities. Finding a local partner that will control the majority of the firm and will allow you to run the company according to your own standards might be challenging.

Probable Implication of VAT

Will the United Arab Emirates always enjoy a tax-free status? While the absence of taxes has made the United Arab Emirates (UAE) a desirable location for conducting business, the introduction of VAT, which is widely expected to take place in 2018, has already caused market unease.

Managing the Revenue

Although the United Arab Emirates (UAE) presents many chances for expanding your business, it also poses many risks, therefore careful revenue management is essential.

The Association of Certified Public Accountants found that insufficient cash flow was responsible for the failure of 82% of new businesses. It’s possible to be pressured into taking out a loan from a bank or other financial institution while establishing a business in the UAE. You should plan for and allocate the money needed to launch your company.

Culture & Communication

Setting up shop in Dubai or any of the other Emirates requires careful consideration of both business communication and Islamic culture. Business communication in the United Arab Emirates is more formal and less straightforward than in other parts of the world.

Similarly, males and women have different communication needs. Modern United Arab Emirates (UAE) is founded on Emirati culture, and Islam is central to daily life.

Caution is Advised

The market in the United Arab Emirates is very dynamic and responsive to changes in supply and demand. There may be difficulties in setting up shop in the United Arab Emirates, but the country’s increasing popularity as a commercial destination suggests that the effort is worth it.

Therefore, it is in your best interest to plan ahead and grow your business goals with the help of expert advice. ReCorporate Business Setup in Dubai provides business setup services in the United Arab Emirates, relieving you of these and other burdens.

It might take time and effort to find a reliable local partner, and it can be unsettling to entrust your financial well-being to someone you don’t know.

In addition, the business needs you find are sometimes missing or contain deceptive information. – ReCorporate is aware of these problems and can point you in the appropriate direction. Just ask one of our helpful staff members for additional information.

So even if you want to start your own business in Dubai or if you want to renew your expired business license and stay away from all or any of the financial or any other penalties then you may please feel free to get in touch with us:


  • Address: 1302 Al Moosa Tower 1, Sheikh Zayed Road, Dubai, UAE
  • Website: ReCorporate Website
  • WhatsApp / Call: +971 58 586 5477 | +91 875 003 0003

Also if you need some professional help from our highly qualified business setup experts then you may feel free to get in touch with us and book your free business consultation with our company formation experts and get expert guidance on your new business setup in Dubai.

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