Penalties for Having an Expired Business License in Dubai

1. In the history of the world’s numerous prosperous economies, only few have been able to accomplish as much as Dubai has in a period of less than 40 years of development. “Make My Firm” itself has assisted numerous clients for their license renewal process in UAE. In the past, Dubai was a small trading community that thrived on petroleum products. Dubai converted its economy from an oil-dependent state to an international business hub, attracting the expanding worldwide demand for company formation sectors to its richer business landscape from a local trading community that thrived on petroleum products. Dubai presently ranks in the top 5 investment locations for foreign entrepreneurs, SMEs, and large scale corporations thanks to its strategic position, specialised infrastructure, advantageous investment legislation, world-class facilities, and growing GDP. Mainland Business License In Dubai, UAE Renewal Even while starting a business in Dubai might be a high-risk endeavour, successfully running one takes an even higher level of caution. Every potential investor in Dubai is required to obtain a Business License in order to legally register their firm and begin conducting business either domestically or globally. These licenses are assigned to particular types of commercial

2. activities and provide a range of unique legal structures to meet the precise needs of the investor. In order to avoid being subject to any fines imposed by the Dubai government after the License’s term has expired, it will be necessary to go through the renewal process. There are three different types of fines that can be imposed on a company if they fail to renew their trade license in Dubai on time. Financial Sanctions for Businesses The Department of Economic Development is the legislative authority in mainland Dubai that is responsible for managing the process of granting business licenses ● registering businesses, ● as well as checking the present validity of those who register businesses. ● In order to make it easier for business owners to keep their trade licenses current, the Department of Economic Development (DED) provides a number of different channels that enable a fast-track business renewal process. A company in Dubai might outsource this work to a consultancy firm or PRO services provider to get the job done. A business that operates without a permit is subject to a fine of AED 5000, and the fine will increase by AED 250 if the business fails to renew its permit within the allotted amount of time. These rules and regulations come from the DED. In a similar vein, an investor

3. who opens a rogue office facility that overlaps an already existing company license may be subject to a fine in the amount of AED 2,000. The Company Is Going on the Blacklist In other situations, a company will be found guilty of being a blacklisted entity if it continues to violate the law by conducting its business activities without the required licensing permit and refuses to adhere to the DED’s licensing authority. In these cases, the company is a proven culprit of continuing to break the law. If the company is placed on the Blacklist, its transactional capabilities will be prohibited, visas will be withdrawn, and sponsors will be disassociated. Additionally, there is a possibility that the owner, shareholders, directors, and management will be deported from the United Arab Emirates. Restriction On The Company’s Capacity For Growth And Expansion SMEs, which stands for small and medium businesses, are the ones most likely to incur penalties for late license renewal. Renewal of a small business’s license must occur on an annual basis, which makes administration more challenging over shorter time periods. In the event that a small business fails to successfully renew its license within the allotted amount of

4. time, it is possible that the company will be barred from expanding its activities in the future. This might lead to the company becoming insolvent, at which point it would be subject to either voluntary or compulsory liquidation. Any small or medium-sized enterprise (SME) in Dubai that plans to grow and expand must remain in full compliance with the legislation governing license renewal. The Liberalization of Dubai’s Company Renewal Requirements In order to preserve the image of Dubai as a city that is welcoming to business, the government of the UAE carried out a number of reforms in the second quarter of 2018, offering financial and legal aid to companies in need of incentives. In a sentence released by it offered relaxation & exempt from all due fines for many companies. This new development about business licenses in Dubai that have expired will be a huge relief for small and medium-sized enterprises (SMEs), and it will help expedite licence renewal. Every year, your documents should be updated and set for renewal. Among the documents in License renew process be it e trader license Dubai are:

5. Copies of business owners’ and investors’ passports ● BR/1 typed form ● A copy of the most recent trade license in Dubai, a tenancy certificate, and ● an Ejari registration certificate Let “Make My Firm” Be of Service “Make My Firm,” the most trustable agency for business formation in Dubai has the most qualified and experienced PROs available to assist your company in keeping track of its renewal dates, filing legal documentation, obtaining approvals, and receiving complete assistance even after you have successfully gotten your license renewed. We will appoint a dedicated PRO to manage the process of renewing your company’s business license. This individual will handle all of the necessary documentation and fees associated with the renewal, as well as liaise with various government authorities on your behalf. Let’s get in touch!