Imagine setting up a business in Dubai by spending thousands of pennies only to have your business shut down because of trade license renewal issues. No matter how much effort you put into growing your business, if your trade license expired, your efforts will go to vain. Licensing nightmares are real, and they can cause serious implications to your business if the licence renewal is not taken seriously.
Lapse in Trade License Renewal Dubai
To run a business in Dubai, a trade license is mandatory. Whether it’s a small startup or a big multinational company, trade license is equally important to every business operating in Dubai. Without this document, you will not have the legal permission to operate your business in the Emirates. However, several new business owners underestimate the importance of Trade license renewal Dubai. The renewal process may seem difficult but missing the renewal deadline can cause hefty fines.
The matters with the trade license renewal is vested upon the Department of Economic Development (DED) in Dubai. DED considers a lapsed trade license as a serious violation. A lapsed trade license can also result in suspension of operations or interruptions in various services, restriction to the visa and immigration process, etc. You will have to renew your trade license on a yearly basis. As delayed renewal can lead to fines, it is recommended that you renew a few days before the renewal date.
Trade License Renewal Process in Dubai
The renewal process may seem difficult at first; however, it is not that difficult if you follow the procedures duly. In order to renew your license, you will need to ensure that the Ejari is valid. The Ejari is to prove the validity of your tenancy contract. It must be valid for at least one month from the date of renewal. Before renewal, you need to settle all the fines or penalties that are due.
You need to prepare all your documents that are necessary for the license renewal. The documents include Original Trade License, Ejari Certificate, Passport Copies of the Partners, and NOC if applicable. Make sure to prepare all the documents beforehand because any expired documents or any missing documents can lead to application rejection.
Your application can be submitted through the official website of DED or through the service centers. The nest step is paying of the renewal fees. The renewal fees can usually start from AED 8000. However the renewal fees vary according to different factors such as the business type, company size, type of license, and jurisdiction.
Trademark Registration in UAE
Just like License Renewal, your Trademark Registration is also something that you need to focus on. Trademark Registration ensures protection for your business name and logo, which are valuable to your business identity. Without a Trade mark registration in UAE, anyone can imitate your business name or logo.
In the UAE, trademarks are registered under the Ministry of Economy and Tourism. Once you apply for trademark registration, it is examined to identify that the trademark is unique to your business, after which you will get the official approval. After registration of your trademark, you will have the right to use it with legal protection against any infringement. Imagine finding a name or logo after much consideration and later you find out that someone else registers with your similar name or logo. In such a situation, you will have to rename or rebrand your business entirely. This can be damaging to your reputation.
Consequences of Neglecting Licensing and Registration
Apart from the hefty fines that is imposed for not renewing your trade licenses, you might also face suspension of all the operations. Your company can lose its reputation, and all your services can be interrupted. You will no longer be able to continue your business in the UAE without a trade license renewal. Considering a business, these are heavy consequences. Imagine setting up your business and establishing a reputation all to have it shut down for not having the trade license renewed. It is a total nightmare.
In order to avoid licensing nightmares, you can follow these simple practices.
- Keep a reminder on your calendar for trade license renewals. Keeping a reminder on your calendar is not only useful for trade license renewals but also can be useful for other important matters like visa renewals and other permits. A digital calendar will work well as it will remind you with a notification.
- Hire a professional business consultant. There are several companies that specialize in assisting you with setting up businesses in Dubai. They can also provide assistance with renewals and various documentations.
- Trademark registration should be done in the early stages itself. Don’t wait until your business becomes well known to the world. Register it from the start so that you will be safe with its legal ownership.
- Keep updated with any changes in the business laws. Hiring a professional will help you to focus on your business without any hassle as they will take care of all the other details.
Final Thoughts
Dubai is a heaven for entrepreneurs if you strictly adhere to its laws. No matter how wonderful a business that you have set up, if matters like trade license renewal are overlooked, it can ruin your business empire. Renewing trade licenses and registering trademarks is just as important as setting up your business, and it is vital for growing your business into a success. To be free from licensing nightmares and grow your business peacefully, We Visandbiz will ensure that your licenses or trademarks are always up-to-date.
