What are the penalties on an expired business license?
If you have a Business Trade License, then be it a Mainland business, Freezone or Offshore they can regulate and make their existence valid by the appropriate documents they have. The instructions on trade license renewal are to be maintained by other business entities on a yearly basis in Dubai and also around the UAE.
To renew your trade license in Dubai best options are offered by the Dubai Economic Development(DED). Your business license can be renewed efficiently with a Business setup in Dubai. Often there are situations were business license is not renewed by the companies and they receive a lot of penalties.
Monetary Penalties
The method of licensing a company is done by the authority of Economic Development in Dubai. In order to review your trade license in Dubai faster than before this authority has also brought online and also SMS renewal system.
When businessmen do not renew their license, what can happen? They are given certain forfeits like - AED 5000 should be given if the business is without a license. Also if the license is not renewed within a particular time then AED 250 should be paid. If you are opting for an office space with an existing license without permission then a fine of AED 2000 should be paid.
When the company gets blacklisted
A company will be added to the blacklist if it does not follow the licensing authorities(DED) rules and is continuing its business practices by breaking the laws by not having the licensing permit. Also, the company's capacity to transact will be restricted, visas denied along with the sponsors being dissociated along with the directors, shareholders and owner being deported from the UAE.
Most businessmen miss track of time and don't remember to renew their business license done every year. Even a month's delay can adversely affect the reputation of the business and it won't be permitted to continue under these conditions. Maintaining a clean record is needed for a business to expand further or plan on suspending or changing the entity.
For company formation in Dubai and also for renewing the trade license you can contact us. Within no time you can get your license renewed with us along with the documentation process also being done for you.
Prohibiting the company's expanding methods
The issue of license renewal and its penalties are always faced by SMEs or small and medium enterprises. It can be very difficult for a small enterprise to provide its annual license renewal. Within the given legal time, if a business is not able to renew its license then it won't be able to expand its operations in the future under certain situations. In this case, there will be compulsory liquidation for the business and result in insolvency. Maintaining the license renewal laws of the DED must be strictly followed by any SMEs wishing to prosper and expand in Dubai.
Business License Renewal (Mainland)
Forming a Dubai business setup can be a complex venture to get into and need more care than what is expected. In order to do business both locally and globally in Dubai, you will need a business license and register your company.
