Beware The Serious Penalties Of Failing To Renew Trade License In Dubai
Suppose you are conducting business in the UAE or have a license to trade or provide services there. Make that the license is current and hasn’t expired. A business license in the UAE is equivalent to a permit to carry out commercial operations there, such as trading or providing services.
You risk facing severe fines if you don’t renew your license on time. Let’s talk more about the various sanctions for not renewing your license.
License Renewal for Businesses in the UAE
1. Financial Fines
In Dubai, the department in charge of economic development oversees the licensing procedure for businesses. The authority has implemented hi-tech features, such as an online and SMS renewal system, as a result of which firms in Dubai can quickly renew their trade licenses.
However, when business people fail to renew their license, they may be subject to a variety of penalties, including AED 5000 in fines for working without a license, AED 250 for failing to renew within the allocated time frame, AED 2000 for opening an additional office for an expired license without permission, and AED 1000 for failing to renew. You can also refer the business setup in UAE for additional reference
2. Blacklisting of Companies
There is a chance that a company will be blacklisted if it resumes its trade or business operations without renewing its license. Adding a corporation to a blacklist will have a significant negative impact on its operations, including:
- The commercial practices of the establishments will no longer be permitted to continue.
- An effective travel ban can revoke business visas and other types of permits.
- Sponsors can discontinue offering their products to your business right away.
- There should be room for the company’s administrative authority to be expelled from Dubai.
3. Restrict Business Expansion
Even with the annual renewal of a small company license, occasionally, business people forget when it is time to renew, and a month’s wait might be worse because these small firms will not be permitted to grow in the future.
Enterprises must maintain a spotless record if there are growth plans or suspend or liquidate the entity.
Golden Assistance
GoldenFortune can help you renew your trade license in Dubai or anywhere else in the UAE while keeping track of your renewal dates and getting the documentation you need for a renewal of trade license.
