How to Renew Trade License in Dubai | Step-by-Step Renewal Guide

It is an absolute must in Dubai to have a trade license if one wishes to operate legally. Hence, owning a trade license ensures that your company is legitimised.

Once expired or revoked, the company faces a range of penalties, and the licensee could face operational difficulties and loss of credibility.

So, how to renew trade license in Dubai? Without delay or draining excess cash? This guide will walk you through the simplified, practical steps of undertaking a trade license renewal.

The very purpose is to have business owners, essentially those who are doing renewal for the first time, stay compliant, avoid penalties, and keep their operations from interruption.

What is Trade Licenses in Dubai?

A trade license is a legal permit to do business in Dubai. Without this permit you can’t go ahead with setting your business. This document is either issued from the Department of Economic Development (DED) or the free zone authorities of your business location. While this is not a one-time document, it has to be timely renewed.

There are four main types of trade licenses:

• Commercial License: For companies involved in buying and selling goods (e.g., trading firms).
• Professional License: For individuals or companies offering services like consulting, IT, or education.
• Industrial License: For businesses involved in manufacturing or industrial activity.
• Tourism License: For travel agencies, hotels, and tourism service providers.
  

Regardless of the type, renewing your trade license on time ensures you avoid fines, maintain your company’s legal standing, and continue operating without disruption.

When and Why You Should Renew a Trade License?

In Dubai, most trade licenses are valid for 12 months. That means you need to begin the renewal process well before the expiration date.

How to renew a trade license in Dubai is a question every business owner should be ready to answer, because missing the deadline has real consequences:

• Fines: Delays can lead to penalties starting from AED 5,000, increasing over time.
• Business Closure: Continued operation with an expired license is considered illegal.
• Loss of Credibility: Clients and suppliers may hesitate to deal with a company that isn’t in good legal standing.

Dubai does offer a 30-day grace period after the license expires, but this isn’t a free pass. Operating during this time can still attract penalties, and banks or partners might freeze cooperation.

Documents Required for Trade License Renewal

Before starting the process, gather all required documents to avoid back-and-forth delays. Here’s a checklist of the typical paperwork you’ll need:

Essential Documents Required for Trade License Renewal

• A valid tenancy contract registered with Ejari
• Passport copies of all partners or business owners
• A copy of the current or recently expired trade license
• The BR/1 license renewal form
• Emirates ID copy (if applicable)
• NOC (No Objection Certificate) from a sponsor (if required)

Ejari Requirements:

Your tenancy contract must meet specific criteria:

• It should be registered with Ejari
• It must be valid for at least one month beyond the license renewal date.

Additional Documents:

Depending on your business activity, you may also need special approvals from external bodies like:

• Dubai Municipality (DM)
• Knowledge and Human Development Authority (KHDA)
• Roads and Transport Authority (RTA)

Always verify with DED or your Free Zone authority if your business requires extra documentation.

Step-by-Step Process to Renew a Trade License in Dubai Mainland (DED)

Renewing a trade license in Dubai mainland is pretty straightforward if you’re organised. Here’s the process for businesses under the Department of Economic Development:

Step 1: Prepare All Documents

Ensure all paperwork—including tenancy, IDs, and approvals—is up to date and ready.

Step 2: Fill and Submit BR/1 Form

This form can be submitted:

• Online via the DED portal or mobile app
• At DED service centres in person
  

Step 3: Submit Tenancy Contract

Upload or attach your valid Ejari-certified tenancy contract with the application.

Step 4: Pay Renewal Fees

Payments can be made through the online system or at service counters. You’ll receive a payment voucher based on your business activity, size, and other variables.

Step 5: Receive Updated Trade License

Once payment is processed, you should receive the renewed trade license within 1–2 working days.

Tip: Use DED e-Services

The online process is faster and avoids the need for in-person visits. If you’re wondering how to renew a trade license in Dubai quickly, this is the way to go.

Renewal Process for Free Zone Companies

If your company is in a Free Zone, the renewal process will differ slightly depending on the authority. Major Free Zones include:

• DMCC (Dubai Multi Commodities Centre)
• DSO (Dubai Silicon Oasis)
• DAFZA (Dubai Airport Free Zone), among others
  

General Process:

• Log in to the Free Zone portal (if available)
• Upload required documents: lease agreement, renewal form, and passport copies
• Pay license and visa renewal fees (if applicable)

Important Notes:

• Fees and documentation vary between Free Zones
• Some zones allow multi-year license renewals
• The process typically takes 3–5 business days

If you’re unsure how to renew a trade license in Dubai Free Zones, it’s best to contact your zone’s customer service for a checklist.

Costs and Fees Involved in Trade License Renewal

The cost of renewing your trade license can vary depending on your business type, size, and location.

Typical Range: AED 8,000 – AED 15,000
What’s Included:

• Trade license renewal fee
• Market fees (based on office size)
• Dubai Municipality fees
• Knowledge and Innovation fees
  

Additional Costs:

• Late penalty fees
• Ejari renewal (if expired)
• PRO or consultant service fees (if you outsource the process)

Budgeting in advance for these costs will prevent delays and ensure timely renewal.

Role of PRO Services and Business Consultants

If paperwork isn’t your strength or you simply want to avoid the stress of government submissions, PRO services can be a real asset.

What They Do:

• Prepare and submit documents on your behalf
• Liaise with government authorities like DED or Free Zones
• Track and follow up on your application

When to Consider Hiring One:

• You have a complex business structure or multiple licenses
• External approvals are involved
• You lack in-house admin support

Knowing how to renew a trade license in Dubai is one thing, but having a pro handle it efficiently is another. Many businesses find it’s worth the extra fee to save time and avoid penalties.

Common Challenges and How to Avoid Them

A few common issues can delay your license renewal. Here’s what to watch out for:

• Expired Ejari contracts: Always ensure tenancy agreements are valid for longer than your license.
• Missed deadlines: Set calendar reminders at least two months before expiry.
• Incorrect or missing documents: Use a checklist to confirm everything before submission.
• Delayed payments: Allocate budget for the complete renewal cost.
• Application rejections: Double-check forms and consider using PRO services if you’re unsure.
  

Tips for a Smooth Trade License Renewal

Here are some tried-and-tested practices from local business owners:

• Start the process early: Begin 30–60 days before your license expires.
• Keep your documents organised: Store everything in a single digital folder.
• Monitor Ejari validity: Don’t wait for your tenancy to expire—renew it in advance.
• Use the DED mobile app or online portal: These save time and reduce in-person visits.
• Consider Free Zones with auto-renewal features.
• Work with a consultant if unsure about any part of the process.
  

Conclusion

Renewing the trade license may seem like a formal procedure with the Department of Economic Development, yet this process is of utmost importance for any business owner in the UAE. Missing a step or a deadline can give one unnecessary stress, fines, or business interruption.

Knowing the actual process of renewal of trade license in Dubai, securing the needed documents, and utilising any available tools or the support of a professional will make it much more convenient for you to carry it out. Being proactive and organised makes the license renewal feel less of a burden and more of an expected part of running a business.

How Can Arnifi Help?

If you don’t have a clue how to proceed, our experts will guide you on the required documents and the procedure on how to renew a trade license in Dubai. Our timely solution will help you get the process completed within a day if you provide all the documents error-free. 

Apart from this, our services include accounting and tax compliance, VAT filing, bookkeeping and HR solutions. Get a free consultation now!