How to Renew Trade License in Dubai: Complete Guide (2026)

As with any other country, to run a legally compliant business in Dubai, you need to have a valid business license at all times. Regardless of where you have established your business, i.e., on the mainland or in the free zone, these licenses are not permanent and must be renewed annually. 

Failing to comply can lead to serious penalties, operational disruptions, and, in some cases, license cancellation. 

This guide will provide businesses in Dubai with a simple, step-by-step process for renewing a trade license, the required documents, the cost, and the penalties for missing deadlines. 

How to renew a trade license in Dubai? Step-by-step process 

The trade renewal process in Dubai is largely digitalised and efficient when the required documents are in order. Here is a step-by-step process of how it is done: 

1. Document Preparation

Before you submit the application, make sure you have all the required valid documents in order and up to date. This includes confirming that the tenancy contract has not expired.

2. Application Submission

Mainland companies should submit their applications through the Department of Economy and Tourism portal or the Invest in Dubai platform. Free zone companies can apply directly through their respective free zone authority portals.

3. Payment of Fees

Once you submit the application, it is reviewed, and a payment voucher is issued. Please be informed that these prices will vary based on the type of business activity, the type of approval, and any other required approvals. 

4. Inspection (If Required)

Some specified business activities, such as those regulated or in industrial markets, may call for special inspections before renewal. 

5. License Issuance

Once approval and payment are completed, you will get the renewed trade license electronically. This can be downloaded immediately. 

For certain eligible mainland companies, Dubai has further simplified this process with an auto-renewal service. For this, all you need to do is send an SMS with the license number. Then you receive a payment link to complete the renewal without visiting any offices. Please note that this applies only to license categories that do not require any special approvals. 

Freezone trade renewal specifics

In contrast to the mainland renewal process, for free zone companies, the whole framework is regulated and managed by the respective authorities. While the steps are straightforward, the requirements may differ from one free zone to another. 

In general, most free zones require:

• Renewal of office lease or flexi-desk contracts

• Updated shareholder and visa documentation

• Clearance of outstanding service fees

The renewal timeline, grace periods, and penalties are also set independently by each free zone. This is why it is important for business owners to carefully check the renewal deadlines for their free zone, as expired licenses may result in suspended services or blocked visa renewals.

What documents are required for renewal? 

Submitting a proper order of documents is crucial and mandatory to renew a trade license. The requirements may vary by jurisdiction and business activity. Here are some essential documents mainland companies will need to provide: 

• Copies of passports for all shareholders or business partners

• A copy of the existing trade license

• A valid tenancy contract for the business premises

• Ejari registration is linked to the tenancy agreement

• Completed BR/1 application form

Having a valid Ejari certificate is critical, as authorities will verify the tenancy contract and its validity with the Real Estate Regulatory Authority before approving renewal applications.

For companies operating in free zones, additional documents may be required, such as:

• No Objection Certificate (if applicable)

• Certificate of Good Standing or Continuity of Existence

• Updated lease or flexi-desk agreement

• Shareholder visa and Emirates ID copies

Some free zones may also require you to submit audited financial statements or compliance declarations, depending on the nature and complexity of your business. 

What to expect if your license expires? 

Failing to renew your trade license beyond the grace period is a serious legal violation. Some of the consequences of this breach include, but are not limited to: 

• Financial penalties for operating without a valid license

• Restrictions on business activities, including bank account freezes

• Inability to renew visas for owners and employees

• Loss of credibility with clients and partners

• Company blacklisting or license cancellation in severe cases

Authorities actively monitor compliance, and continued non-renewal can result in the business being forced to close.

What is the cost of trade renewal? 

The cost of renewing a trade license in Dubai depends on several factors, including legal structure, business activity, and location.

For most small and medium-sized mainland businesses, renewal costs typically range from AED 8,000 to AED 15,000. Regulated activities such as general trading, construction, or investment services may incur higher fees.

Common renewal fees may include:

• License registration fee

• Knowledge and innovation fees

• Trade name fees (if applicable)

• Activity-specific approval charges

• Business center or office lease fees

• Chamber of Commerce fees

The final payable amount is reflected in the official payment voucher issued after application review.

What is the grace period and the late penalties?

Mainland trade licenses come with a 30-day grace period after expiry. If renewal is not completed within this window, penalties apply.

Late renewal consequences may include:

• Administrative fines

• Monthly penalties for continued operation

• Restrictions on visa processing

• Escalating enforcement actions over time

Renewing within the grace period helps businesses avoid unnecessary costs and disruptions.

Key Takeaways 

Trade license renewal is a critical responsibility for every business operating in Dubai. Staying compliant ensures uninterrupted operations, protects your company’s reputation, and prevents costly penalties.

By preparing documents in advance, monitoring expiry dates, and understanding jurisdiction-specific requirements, business owners can complete renewals smoothly and efficiently. For companies with complex structures or regulated activities, professional guidance can simplify the process and reduce risk.

If you want to ensure a hassle-free trade license renewal in 2026, working with experienced advisors for professional business setup services can save time, prevent errors, and keep your company fully compliant.