What does renewing a company license in Dubai mean?
As we mentioned earlier, License renewal is one of the most important processes that every company or business owner in Dubai must complete within specified timeframes. Simply put, a license is the commercial permit for your business activities. Renewing this permit indicates that your company is still operational and, more importantly, that this activity is legal and authorized.
The license renewal process usually must be done through the UAE Ministry of Economy or DED (Department of Economic Development) . To do this, there are specific websites and online portals available. Company owners in Dubai can also visit the offices of these organizations in person to renew their business activity permit and receive a new license.
For more information about company registration, see the article Company Registration Guide Please visit.
When should you apply to renew your company license in Dubai?
Generally speaking, renewing the company license, or the company permit in Dubai, must be done annually. Company and business owners in Dubai must visit the DED website or offices once a year on a specified date to renew their company license.
The best time to start the company license renewal process in Dubai is about 1 to 2 weeks before the current license expires.
Since the license renewal process and obtaining a new license also takes about 1 to 2 weeks, this timeframe provides you with enough opportunity and prevents the consequences of late license renewal.
Consequences and repercussions of not renewing a company license in Dubai
As mentioned earlier, having a company license and renewing it on time guarantees your company’s smooth operation in the UAE. Just as timely renewal of the license can bring specific benefits, failing to renew it and operating without a license can also have consequences for your business.
Among the consequences and repercussions of not renewing a company license in Dubai are the following:
1. Monetary fines
DED Organization in the UAEhas full authority to impose fines on companies that do not renew their licenses. Those companies without an updated commercial license and who have not renewed it, will be fined up to 5000 dirhams. Additionally, if a business continues to operate after its license has expired, it will incur a monthly fine of 250 dirhams as well.
2. Blacklisting of the Company
Company operations without obtaining a commercial license or after the annual license validity expirescan lead to the risk of that business being placed on the blacklist. Being blacklisted means that all activities of the company and its subsidiaries in the UAE will be terminated.
3. Company Sanctions
Operating a company without a commercial license or operating with a license that has not been renewed and is invalidcan even result in the company being sanctioned. The DED has extensive authority and in such cases can directly terminate the company’s operations and even sanction it. Company Sanctions This means that the company will never be allowed to resume business activities in the UAE.
4. Other consequences of not renewing the company license
In addition to the points mentioned above, failure to renew the company license and obtain a new permit can also lead to other consequences, including the following:
- The company’s bank account will be closed and suspended.
- Dubai’s Ministry of Labor and Immigration will not issue visas for the company’s personnel.
- Customs operations will face obstacles, causing problems with exports and imports.
An overview of the company license renewal process in Dubai
Process Company license renewal and updating the commercial activity license is a much simpler process. As mentioned earlier, this process can be completed within 1 to 2 weeks. Carrying out the company license renewal process in Dubai at the right time and correctly can help maintain your company's standards effectively.
The company commercial license renewal process in Dubai can be summarized in the following steps:
Reviewing the Company Office Lease Agreement
The first step to renewing your company license is to check the validity period of the lease agreement. In other words, to renew your company license, you will need the lease agreement. This lease pertains to the main office location of the company. Your lease must have at least 1 month of validity remaining. Without providing the lease agreement, your license will not be renewed.
Submitting the License Renewal Request to the DED
Next, you need to submit your request to renew the company license in Dubai to the DED (Department of Economic Development). For this, you must fill out a form called BR/1 and attach the necessary documents to your application. The UAE Economic Development Department will review your request and notify you of the result within a few days.
Receiving the Voucher and Paying the Renewal Fee
Once your license renewal request is approved by the mentioned department, the renewal fee voucher will be sent to you by the same organization. At this stage, you need to pay the required fees and keep the payment receipt for submission to the DED.
Completing the Company License Renewal Process
The process of renewing your company’s commercial activity license will be completed after the payment is made. Once you have paid the fees, the DED will automatically issue a new license for you. This license is valid for 1 year. With the new license, you can continue your company’s activities as before.
Required Documents for Company License Renewal in Dubai
If you have carefully read the previous section, you will realize that the process of renewing a company license in Dubai also requires submitting specific documents. In this section, we want to fully introduce the necessary documents for renewing a company license in Dubai to you dear readers. Among these required documents, the following can be mentioned:
1. Office Lease Agreement
Company office lease contract or the rental agreement, is the first document you will need in Dubai. Company license renewal Providing a valid lease agreement at the time of renewing the company’s trade license is mandatory, otherwise, license renewal will be impossible and may even result in fines. Regarding the lease agreement, it is good to know that:
- Your lease contract must have at least 1 month of validity.
- For In the first year, there is no need to provide the office lease agreement.
- Renewing the lease agreement also incurs a separate cost, which we will discuss later.
- Some companies do not need a lease agreement at the time of registration, but must provide one when renewing the license.
2. Ejari Certificate
Ejari is a government portal managed by the Dubai Land Department (DLD) The main function of this online portal is to standardize lease contracts or rental agreements in the UAE. To make your office lease contract legal and valid To do so, it is necessary to register it in the lease. Certificate of Approval Receive it. You must also present this certificate to renew the license.
3. Copy the current license sheet
To renew a company license in Dubai and obtain a new license, it is necessary that Current license document Also attach it to your file. If you do not already have a business activity license in the UAE, you cannot proceed without providing it Renew your license Do this; therefore, presenting this document among the required papers, Required.
4. Completed BR/1 form
As we mentioned in the previous section, to start the process Company license renewal In Dubai, when obtaining a new license, it is necessary to fill out a form called BR/1 Received from the UAE Economic Development Department and filled out. This form must Carefully It is filled and also by you and other company partners Signature This form is then sent to the organization for review and approval DED Will be provided.
5. Photocopy of the passports of all company partners
In addition to the above documents, it is necessary to attach a photocopy of the passports of all company partners in the file. Providing these documents is mandatory as it shows that other individuals also hold shares in the company. If there are no other partners in the company, providing a copy of your own passport is sufficient.
6. Other documents required for renewing a company license in Dubai
The documents mentioned earlier are considered the main documents. Alongside them, it is necessary to provide other documents depending on the organization's request and their needs. Among other required documents, the following should be noted:
- Copy of the main owner's visa and other partners' visas
- Certificates related to tax and insurance payments
- Emirati ID card and identity documents
The cost required for renewing a company license in Dubai
Renewing a company license in Dubai will also incur costs for you. It is important to know that paying these fees for renewing your company's activity license is mandatory and failure to pay them will be a major obstacle in the license renewal process. Overall, it can be said that renewing a company license in Dubai can cost around 8,000 to 15,000 dirhams It may cost you.
Regarding the cost of renewing a company license in Dubai, it is important to pay attention to the following points:
- The stated cost is approximate.
- Factors such as jurisdiction, type of company activity, and economic zone can directly affect the cost of renewing the company license.
- If your tenancy certificate is residential, you can benefit from discounts on costs. Also, the Chamber of Commerce can help in obtaining discounts.
In the table below, you can see the detailed costs for renewing a company license in Dubai for the year 2025:
| License Type | Renewal Cost |
|---|---|
| Professional License (service companies, tourism, etc.) | 8,000 AED |
| Commercial License (import and export companies, etc.) | 12,000 AED |
| Industrial License (manufacturing companies, etc.) | 15,000 AED |
| Ejari Certificate Fee | Approximately 175 AED |
| Office Lease Renewal Fee | 1,000 to 6,000 AED |
| Residency Visa Renewal Fee (if applicable) | 3,000 to 5,000 AED |
The Relationship Between Company License Renewal in Dubai and Dubai Residency Visa
Many applicants are concerned about whether it is mandatory to renew the company license to maintain Dubai residency after company registration, Company license renewal In other words, can failure to renew the company license affect their visa status? The answer to this question is that there is no particular cause for concern.
It should be noted that Residency obtained through company registration In the UAE, It is valid for 2 years.This means that if the company license is not renewed at the end of the first year, there will be no issue with your visa and you can maintain your residency. In the second year, to keep your residency, you need to renew the company license and then the residency, and pay the related fees.
I suggest the article Dubai Residency through Company Registration as well.
Freezing a company in Dubai and its benefits
If your goal of registering a company in Dubai is solely to obtain a 2-year UAE visa and you do not intend to work after obtaining the visa, you can freeze the company. Freezing a company means temporarily halting all its activities. By freezing the company, you can maintain the UAE visa, but no commercial activities can be conducted within the company.
Regarding freezing a company, it is good to keep these points in mind:
- The allowed duration for freezing the company is only 1 year is.
- During the freeze period, any commercial activity of the company is prohibited is.
- While the company is frozen, Ejari certificate Must be preserved.
- Freezing the company It can prevent penalties for license renewal delays.
- By freezing the company, its owner can start a new business in the UAE.
Freezing a company in the UAE It has a specific process and steps, and our experts will provide you with complete information about it when necessary. It is worth knowing that freezing a company in Dubai can take approximately 2,000 to 6,000 dirhams May incur a cost for you.
In the case of sole establishments registered in DED, freezing is allowed for a period of one year. A company cannot carry on with any of its operations, once the license is frozen as it is illegal.
Persian Translation
For single-member companies registered with the Department of Economic Development (DED), freezing the license for a period of one year is permitted. When the license is frozen, the company cannot continue any of its activities as doing so would be illegal.
Final words
Company license renewal One of the most important things to do after 1 year Register your company in Dubai. Conduct business activities without license renewal Prohibited It will also result in fines for you. More importantly, renewing the company license after 2 years It is also important for maintaining residency. For this reason, in this article, we have provided you with all the necessary details on this subject.
For more information and to receive consultation, contact Our team of experts Stay in touch.
