Trade License Management for PROs
Overview
While company formation handles the initial trade license setup, PROs are responsible for ongoing trade license management, including renewals, activity changes, and compliance.
Trade License Renewal
Renewal Timeline: Annual renewal required. Renewal window opens 30 days before expiry. Must renew before expiry to avoid fines. Late renewal fine: AED 5,000+.
Renewal Process: Submit renewal application to DED (or free zone authority). Provide: current trade license, Ejari/tenancy contract, updated company details, compliance certificates (if required), pay renewal fees.
Renewal Requirements: Active Ejari/tenancy contract, no pending violations, WPS compliance (if applicable), current labor quota (if applicable), Corporate Tax registration (if applicable), VAT registration (if applicable).
Activity Changes
Adding Activities: Submit activity change application to DED. Pay activity change fees. Some activities require additional approvals. Update trade license.
Removing Activities: Submit request to DED. Remove from trade license. May affect labor quota.
Changing License Type: Commercial to Professional. Professional to Industrial. Requires DED approval and documentation.
Trade License Amendments
Company Name Change: Submit name change application. Obtain DED approval. Update MOA (notarize). Update all registrations (bank, tax, labor).
Ownership Change: Submit ownership change application. Obtain DED approval. Update MOA (notarize). Update bank records. Update UBO declaration.
Address Change: Submit address change to DED. Update Ejari. Update all registrations. Notify bank and tax authority.
Manager Change: Submit manager change to DED. Update MOA (if required). Notarize changes. Update bank records. Update labor records.
Establishment Card
What is an Establishment Card?
Issued by MoHRE. Required for mainland companies to sponsor employees. Contains: establishment number, company name, activity, labor quota, manager details. Valid for 2 years (renewable).
Establishment Card Application
Submit to MoHRE. Provide: trade license, MOA, office lease (Ejari), manager passport and visa, company stamp. MoHRE issues establishment card with establishment number. Processing time: 3-7 business days.
Establishment Card Renewal
Renew every 2 years. Submit renewal before expiry. Provide updated documents. Pay renewal fees. Late renewal may affect work permit processing.
Labor Quota on Establishment Card
The establishment card shows the approved labor quota. PRO can check available quota. Must have sufficient quota before applying for new work permits. Quota can be increased with additional office space.
Commercial Registration (CR)
Maintained with DED or Ministry of Economy. CR number is on the trade license. Must be renewed annually with the trade license. CR contains company details, activities, ownership.
Key Compliance Items
Trade license current and renewed. Establishment card current. Ejari/tenancy contract active. Labor quota sufficient. WPS compliant. Tax registrations current. No pending violations. Government approvals current.
PRO's Role in License Management
Track renewal dates. Prepare renewal documents in advance. Submit renewals on time. Maintain compliance with all requirements. Update records after any changes. Keep copies of all licenses and permits. Ensure company stamp is available. Maintain relationship with DED/authority.
Common Issues and Solutions
Expired License: Renew immediately. Pay late fines. Submit compliance documents. May face work permit blocks.
Insufficient Quota: Rent additional office space. Apply for quota increase. Use existing quota efficiently.
Activity Not Approved: Check DED activity list. Obtain additional approvals if required. Modify business plan if needed.
Office Lease Issues: Maintain Ejari. Address landlord disputes. Ensure office is suitable for licensed activity.