All types of onshore companies registered in free trade zones in Dubai and other Emirates of the UAE are subject to compulsory annual license renewal. This requirement also applies to companies incorporated in the mainland of the United Arab Emirates having the legal status of limited liability company.
The procedure aspect of license renewal and compliance with the requirements relating thereto depends on the type of company, type of license and incorporation place (Emirates and Free zone).
Renewal of the company is subject to payment of all relevant governmental fees and renewal of company office lease. In case of virtual package, provided by the administration of the free trade zone, it is required, accordingly, to renew such office package.
Furthermore, extension / renewal of the license may be subject to compliance with additional requirements – filing of balance sheet, receiving of NOC with current date, etc.
In the event of any delays in renewal of the company, penalties may be imposed thereon. In addition, in case of further violation of the requirement with respect of renewal of the license, visas received over such company may be automatically canceled.
In case of default in renewal of the company and obtaining of new license, the bank may also suspend all company account transactions.
In light of the aforesaid, it is strongly recommended to renew the company and its license in Dubai and any other Emirates within defined period of time.
Companies having the status of IBC companies, i.e. offshore companies in Dubai or Ras Al Khaimah, are not subject to license renewal requirements. Such companies do not have license as such, they have the articles and memorandum of incorporation / association that allows to perform practically any type of activity. Furthermore, instead of renewal of the license, offshore companies in the UAE are subject to annual renewal procedure in the registry with subsequent issuance of renewal certificate.
If you have a company in Dubai or in any other Emirate of the UAE, and you are required to perform renewal thereof, but you do not know how to do it, or you are located abroad, please feel free to contact us. We will be delighted to provide full package of services with respect to renewal of companies or any type of licenses in the UAE.