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How To Renew Your Trade Licence In Abu Dhabi

Jan 27, 2024 | Legal

Abu Dhabi, trade licence renewal is an essential process that business owners in the region must navigate to ensure their operations remain compliant and uninterrupted. Regularly renewing your trade licence with the Department of Economic Development (DED) is a legal requirement and a strategic step to avoid potential fines and disruptions to your business activities. Whether you’re a seasoned entrepreneur or new to the business landscape in Abu Dhabi, understanding the renewal process, the required documents and the conditions set by the DED is crucial. With the option to renew online or offline and the possibility of extending your licence for up to three years, this guide will provide you with the necessary insights to manage your trade licence renewal efficiently.

Procedure for DED Abu Dhabi Licence Renewal

If you’re running a business in Abu Dhabi, you must renew your trade licence to stay legal and keep your operations going. The Department of Economic Development (DED) in Abu Dhabi has streamlined the renewal process, now offering up to three years instead of the previous one-year term. This change aims to cut down on procedural costs and lessen the number of times you need to deal with licensing transactions, which is a big plus for small and medium-sized businesses.

The DED issues three main categories of licences: Commercial, Industrial, and Professional. Each type of licence has its own set of renewal requirements that you must meet to keep your business running smoothly. Remember, if you’re caught conducting business activities without a valid licence, you could face hefty fines, blocklisting, and restrictions on your company’s future growth.

How To Renew Your Abu Dhabi Trade Licence Online

To renew your Abu Dhabi trade licence online, make sure your tenancy contract is valid for at least one more month and attested by Ejari, as this is a must for the renewal process. You’ll need a few documents for an online renewal:

  • A typed BR/1 form
  • An Ejari Registration Certificate
  • A photocopy of the Tenancy Contract
  • A photocopy of the current trade licence
  • Passport photocopies of all business partners

Remember copies of the relevant individuals’ valid UAE ID cards and no objection letters from concerned authorities if they’re needed.

Once you submit your application to the Abu Dhabi DED, they’ll generate a payment voucher. Make sure all your documents are in PDF format, clear, correctly coloured, and properly labelled. The average document size should be around 70 Kbytes. After you’ve made the payment, the renewed licence will be issued through your chosen channel. If your licence has expired for more than three months, the DED’s Inspection Division might need to check things out.

How To Renew Your Abu Dhabi Trade Licence Offline

For those who prefer or need to renew their trade licence in person, the offline process involves submitting the licence application form directly. You or an authorised representative can handle this. If your business is a branch of a company within Abu Dhabi or any other Emirates, you’ll need a valid copy of the parent company’s licence. If it’s a branch of a foreign company, the renewal process has to go through the Ministry of Economy.

Please renew your trade licence on time to avoid a heap of trouble, including financial fines and the risk of your company being blocklisted. This can freeze all your transactional activities, invalidate visas and sponsorships linked to your company, and even mean you must leave the country. Plus, companies with expired licences can’t expand, which can really hold back your growth plans. So, keeping a clean record and renewing your licence promptly is in your best interest to dodge these issues.

Screenshot Of DED Website

Required Documents for Abu Dhabi Trade Licence Renewal

Gathering the necessary paperwork is crucial for seamlessly renewing your trade licence in Abu Dhabi. The requirements may vary depending on the nature of your business and its location. Here’s a rundown of the essential documents you’ll need.

You must present the original and a copy of your existing trade licence as evidence of your legal business operations. Ensure that the information on the licence accurately reflects your current business status. In addition to your trade licence, an Ejari certificate is essential to verify the legitimacy of your business premises.

Your tenancy contract should be active, indicating a stable location for your enterprise. Certain business categories may require approvals from external departments, contingent on the activities authorised by your trade licence.

The documentation for these approvals varies, so it’s prudent to consult with the appropriate authorities to ensure completeness. An audit report may be necessary during the renewal for entities within some free zones. This document provides insight into your company’s financial health, which free zone authorities review.

Maintaining an active PO box is another requirement, as it is a standard method for managing business correspondence in the UAE.

If your enterprise has shareholders, their passport copies are required to verify their identities and stakes in the business.

For branches of foreign companies or those with foreign ownership, a copy of the parent company’s renewed trade licence is needed to demonstrate its ongoing legal business status.

Lastly, additional documents tailored to the specifics of your trade licence may be requested by the free zone authority or other regulatory bodies. Engaging with these authorities in advance of your licence’s expiration is vital to ascertain any extra requirements.

Screenshot Of UAE Ministry Of Economy Website

Conditions for Abu Dhabi Trade Licence Renewal

To ensure your business remains operational without interruption, it’s essential to meet the DED’s criteria for renewing your trade licence. This involves ensuring that your lease agreement is attested and valid for a minimum of three months at the time of application.

Additional clearances may be required from relevant authorities, such as the Department of Food Safety or the UAE Road and Transport Authority, for certain business activities. A valid copy of the parent company’s licence is necessary for subsidiary companies. The Ministry of Economy oversees the renewal of foreign company subsidiaries. Upon submission, a transaction number will be issued for tracking purposes.

The corresponding fees must be settled once the DED issues a payment voucher. It’s crucial to retain proof of payment to avoid complications. The renewal cost varies based on the nature of your business and your licence category.

For online renewals, documents must be submitted in PDF format, with each file clearly named and within the specified size limit. Mainland companies must provide the Ejari certificate, a lease agreement, the original and a copy of the existing trade licence, and any additional documents pertinent to their specific business activities.

Companies situated in free zones must furnish their current trade licence, PO Box Renewal Confirmation, and passport copies of the company’s investors. An audit report or other specific documents may also be necessary. Subsidiaries of foreign companies should present an approved trade licence from the parent company.

The online platform provided by the DED facilitates a more convenient submission and monitoring of your renewal application.

Screenshot Of UAE Ministry Of Food Safety Website

What Happens if You Don’t Renew Your Trade Licence

Neglecting to renew your trade licence in Abu Dhabi can lead to severe repercussions. To avoid these consequences, businesses must ensure their trade licences are renewed at least 30 days before expiration.

Missing the renewal deadline can result in substantial fines from the DED or free zone authorities. For instance, engaging in commercial activities without a valid licence can incur a fine of USD 1,362. Additionally, a standard fine of USD 68 is imposed for each month the renewal is delayed beyond the grace period.

Continued operation without a valid licence can lead to blocklisting, effectively halting all business activities. This status can have significant implications, including the inability to process new visas and the potential cancellation of existing ones, which a travel ban may accompany. Such restrictions can disrupt your workforce and international business dealings.

In extreme cases, company executives may face deportation from the UAE.

Should you consider ceasing operations, it’s advisable to undertake an orderly liquidation process. There are two types of liquidation in the UAE: voluntary, initiated by the company owners, and compulsory, enforced by legal authorities.

The penalties for an expired trade licence vary depending on the business activity. The DED’s stringent enforcement underscores the importance of adhering to renewal deadlines to avoid financial penalties and legal complications.

Stay Compliant, Stay Thriving

Maintaining the validity of your trade licence in Abu Dhabi is more than a legal formality—it’s a strategic move that keeps your business on the right track. The Department of Economic Development’s simplified renewal process is designed to support your venture’s growth while ensuring compliance with local regulations.

A proactive approach to your trade licence renewal not only sidesteps fines and legal troubles but also secures your company’s operational continuity. So, gather your documents, follow the outlined steps, and choose online or offline channels that suit your preferences. This way, you can focus on what you do best—running your business. Remember, a valid trade licence is the backbone of your commercial credibility in Abu Dhabi; keep it current and safeguard your enterprise’s future.

FAQ’s

How Much is the Licence Renewal Fee in Abu Dhabi?

The cost of renewing a business licence in Abu Dhabi is USD 272. This fee encompasses a bundle of six activities. It includes all necessary charges from various government entities, such as ADDED, the Department of Municipalities and Transport, and the Abu Dhabi Chamber. It also covers the issuance fee for the Certificate of Conformity and any other charges required by local regulating entities, contingent on the nature of your business. Despite the reduction in many fees, federal fees will still apply. Effective July 27, 2021, this revised fee structure represents a significant decrease from previous costs.

How Much is Abu Dhabi’s Trade Licence?

The Creative Media Authority has eliminated licence and registration fees for new creative sector businesses for the initial two years. The cost would be USD 4,085 for the licence and USD 953 for registration. After the initial two-year period, the standard fee for licence renewal is USD 3,404.

How Can I Check my Trade Licence Online in Abu Dhabi?

Renewing a trade licence within the twofour54 free zone is straightforward using their online self-service portal. Additionally, an online database is available to check the status of any business licence in Abu Dhabi. This resource allows for searches by trade names or licence details. For comprehensive information on the updated fees and procedures, ADDED’s official website provides detailed guidance.

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