What happens if a company’s license in the UAE is not renewed?

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If a company’s license in the UAE is not renewed within the prescribed timeframe, it can have significant consequences for the business. Generally, non-renewal of the license results in the invalidation of the existing license, making the company illegal and unauthorized to conduct commercial activities.

Authorities (Registries and Immigration Services) impose fines and even forced closure of the business if the license is not renewed on time.

As non-payment of a company’s license fees (or dissolution fees) creates a liability with the authorities, there is a possibility of being detained when passing through an airport/port in the UAE.

Lastly, it’s important to note that the company and its associates will have a negative track record, which can impact future endeavors such as creating a new company, applying for a residency visa, or opening a bank account, whether in the UAE or elsewhere (considering that databases are now online and accessible worldwide).

We, therefore, urge you to renew your license on time or proceed with the dissolution of your company if it is no longer in use.

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