Business license renewal is a fact of life for entrepreneurs across the UAE. Unlike jurisdictions where you get a license once and retain it until you close your business, the UAE requires that you renew your business license annually.
Reassess your Needs to Renew License
One of the critical elements that we often discuss with clients seeking to renew their license is to reassess their business needs. Many entrepreneurs start in the UAE with an affordable free zone trading license. Eventually, some discover that the bulk of their clientele is local and the inconvenience of having to go through a local service agent is eating through profits.
Sometimes professionals such as web designers, marketers, etc. set up a big office via a local license and then realize that they are not putting it to optimal use. Modern solutions such as business centers or co-working spaces are a better fit. Many expats move out of the UAE and still want the ability to do business; therefore, an affordable license without any office at all is optimal. A consultation with a professional can help you determine whether the best solution lies in renewing your license or getting a new license suitable for your needs.
Some free zone jurisdictions offer loyalty promotions if you have renewed with them for several years. A few free zones give a substantial discount if you can do a multi-year renewal. Be sure to enquire about such offers from the free zone or your consultant.
Many businesses use the license renewal period to modify or add additional business activities, adjust share percentages and other modifications. Some jurisdictions wave the fees to make these adjustments at the time of renewal; therefore, this can yield substantial savings.
We also recommend reading this: Things to Keep in Mind Before Closing Your Business & Leaving DubaiGather the Essential Documents for Business License Renewal
The exact documentation varies based on your renewal jurisdiction; however, there are some standard documents that you must provide:
- New lease agreement
- Passport and visa copy (if applicable) of shareholders and general manager
- Certificate of incumbency or good standing (if branch or subsidiary)
- Financial audit and company accounts (if applicable)
- Renewal application form (if required)
- External agency NOCs (if applicable)
Once you have gathered these documents, you will need to provide your license renewal fee. The timeframe to get your new license can vary.
Distribute Your New Renewed Business License
Once you receive your renewed license, you will need to forward it to the bank where you have your corporate account. Failure to do so, can lead to the suspension of your company accounts and have unintended financial consequences.
If you have a PO box, like most companies across the UAE, you will need to submit your new license to retain your account. The same applies to any other governmental and quasi-governmental entities from which you have an ongoing relationship with.
While it is not a legal requirement, it is always a good idea to retain and exchange up to date licenses with your core set of suppliers or contracting firms. This will be beneficial for both parties as it lists the people who are legally accountable in case of any dispute in the business relationship.
Last but not least, if you have a physical site for your business, be sure to display your renewed license in an area where it is accessible.
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