“A valid license in Dubai is a free pass to run a business anywhere in the United Arab Emirates. License owners should check for license renewals as needed. If you do not renew your license on time, you will have to pay a heavy fine.

DED and other UAE government agencies have made it mandatory for all businesses to renew their licenses well before their expiration date. Otherwise, you will be penalized. The three primary problems faced due to non-renewal of licenses are:

1. Fine
The Dubai Economic Development Authority (DED) has established an online and SMS renewal system for renewing trade licenses. However, if your company does not renew your license on time, you may incur the following losses:
– A company practicing without a license could be penalized with AED 5000.
– Failure to renew a license within the specified time limit could cost AED 250.

2. Blacklisting your company
If a company continues its business without renewing its business license, it may be blacklisted. Blacklisting is the toughest disciplinary method that regulators can allow. Being blacklisted is not just limited to all types of operations. In some cases, owners, managers, shareholders and directors may even be expelled from the UAE. The UAE government, however, gives business owners a grace period to renew their licenses.

3. Expansion limits
Even small business license renewals take place every year. Occasionally, businessmen may lose track of when their license needs to be renewed. The one-month delay could be exacerbated, as SMEs will not be allowed to grow under these circumstances in the future. Therefore, the company must have a clear record of the expansion plan, or suspend or liquidate the business. Let’s say you are a little late to renew your business license; your business activity will be suspended, and your company will not be able to expand its business activity in the future.”