Business establishments in the United Arab Emirates, whether they are a mainland company, a freezone institution, or an offshore organisation – any of these types of companies are permitted to regulate as long as they have a Business Trade License or constitutional documents validating the entity as well as their existence. These commercial entities are needed to renew their trade licences on a yearly basis in Dubai, as well as in other parts of the United Arab Emirates.
Several methods for renewing a commercial licence in Dubai are provided by the Dubai Economic Development (DED). Additionally, business establishment firms in Dubai provide simple and efficient methods for renewing a company’s licence. However, there are cases in which businesses continue to fail to renew their business licences, resulting in the imposition of many fines.
Even though there are a huge variety of problems that may arise as a result of the non-renewal of a business licence, the three most significant are as follows:
Penalties in the Form of Money
The Department of Economic Development in Dubai is a government agency that oversees the licencing procedure for businesses. It has included high-tech features such as an online and SMS renewal system, which allows company owners to renew their trade licence in Dubai within minutes after submitting their application. When businessmen fail to renew their licences, they may be subjected to a variety of penalties, including AED 5000 for operating a business without a licence, AED 250 for failing to renew a licence within the specified time-limit, and AED 2000 for opening a second office for an existing licence without permission (fines are noted as per the DED website)
Company gets placed on a blacklist.
When businesses continue to operate without renewing their trade licences, there is a reasonable risk that the firm may be banned. The blacklisting of a corporation would halt any transactional activities that the firm is involved in; it would also invalidate any visas or sponsors that were issued under the company’s name; and it is also possible that the investor or businessman would be required to leave the country.
Business Expansion Should Be Restricted
In spite of the fact that small business licence renewals are carried out year after year, businessmen occasionally lose track of when the licences need to be renewed, and a month’s delay could be even more detrimental because these small businesses will not be permitted to expand in the future if this situation continues. Having a clean record is very essential for companies that want to expand, or who choose to stop operations or liquidate their operations.
With Generis Global, you may renew your trade licence in the United Arab Emirates in real time. Keeping track of your renewal dates, completing the necessary paperwork for your business trade licence renewal procedure, and having your business licence renewed in Dubai or any other region of the UAE are all made possible via us.