Guide · updated 16.10.2026 · 8 min read · Lucent Legal team

Expired trade licence in the UAE: fines and what to do

Key points

  • Dubai mainland: AED 250 for failing to renew plus AED 200 for each month of delay, with a part month counted as a full month. A repeat within a year doubles the fine, capped at AED 100,000.
  • You cannot renew the establishment card without a valid licence. A card more than 30 days late costs AED 100 a month, capped at AED 1,000. Without the card the company cannot issue or renew visas.
  • Free zones fine on their own tariffs: RAKEZ AED 50 a day with no grace period, DMCC AED 2,500 or 5,000 depending on the delay, JAFZA AED 1,000.
  • For the FTA an expired licence alone does not end the business: the corporate tax registration stays and returns stay due.
  • If you no longer need the company, close it rather than abandon it. You still pay the late fines before you can close.

A UAE licence runs for one year. If you do not renew it, the company does not disappear: fines build up every month, the immigration file locks, and the FTA still expects your returns. Below are the DET and free zone tariffs from their official documents, and the steps to fix it.

What an expired licence blocks

  • Visas. ICP renews the establishment card only against a valid licence. No card means no visa for a new hire and no renewal of the owner's visa.
  • Bank. At a KYC refresh the bank asks for a valid licence and may restrict the account.
  • Company changes. The registrar will not process licence amendments, share transfers or a new manager while the licence is expired. DMCC writes this into its share transfer rules.
  • Tax. In public clarification CTP003 the FTA states that an expired licence does not by itself mean the business has ceased. Penalties for missed returns keep running.

Fines on the Dubai mainland

Breach Fine Source
Failing to renew on time AED 250 Executive Council Resolution No. 13 of 2011, Schedule 2, item 5
Delay in renewal AED 200 per month, part month counts as full Same, item 6
Repeat within a year Doubled; no fine above AED 100,000 Same, Art. 3
Establishment card more than 30 days late AED 100 a month, capped at AED 1,000 ICP

Many websites quote "AED 250 a month per activity". Resolution No. 13 of 2011, which the Dubai legislation portal lists as in force on 16.10.2026, contains no such rate. DET shows the exact amount in your Invest in Dubai account when you apply to renew.

In Abu Dhabi, the ADRA registrar waived late renewal fines until 15 August 2026: according to WAM, 7,823 companies used the scheme. We found no current ADRA fine tariff on its official site.

Fines in free zones

Zone Grace period Fine What comes next
DMCC 30 days, no fine AED 2,500 for 31–60 days, AED 5,000 for 61–90 days After 90 days the licence is terminated; reinstatement from AED 30,280
RAKEZ None AED 50 a day from expiry Plus third-party fines
JAFZA n/a AED 1,000 for late renewal; the closure guide says AED 1,000 a month Reinstatement AED 5,000
SHAMS 30 days AED 200 a month Legal notice at 6 months, suspension at 7 (AED 1,000), then cancellation of the establishment card and visas
Meydan 30 days AED 500 one-off Late establishment card AED 250 a month
Expo City Dubai 30 days AED 1,500 (days 31–59), AED 3,000 (60–89), AED 6,000 (from day 90) n/a
IFZA, SPC n/a No published amounts; see zone terms IFZA warns of fines, suspension and cancellation

How to renew an expired licence

  1. Get the total. Check your Invest in Dubai account or the zone portal for fines on the licence, the establishment card and sometimes the lease.
  2. Fix the address. Dubai mainland renewal needs a valid Ejari lease. In a zone, a valid office or desk agreement.
  3. Collect the zone's documents. Many zones require last year's audited accounts before renewal (DMCC within 6 months of year end, JAFZA every year).
  4. Pay the fines and the renewal fee. The registrar will not accept the application with fines unpaid.
  5. Renew the establishment card and check your staff visa dates.
  6. Clear the tax side. Check EmaraTax for missing corporate tax and VAT returns. Their penalties run separately: running a company in the UAE.

If you no longer need the company

You do not have to renew, but you still close the company properly: cancel visas and the lease, liquidate, cancel the licence, deregister with the FTA. You pay the late fines before you apply to cancel. In Dubai, for an LLC whose licence expired more than two years ago, the creditor claim period after the notice shrinks to 15 days. Steps: cancelling a trade licence in Dubai and liquidating a company in the UAE.

If you may need the business later and do not want to pay for a full year, some zones let you suspend the licence: putting a UAE company on hold.

FAQ

What is the fine for an expired trade licence in Dubai?

On the mainland, AED 250 for failing to renew and AED 200 for each month of delay under Executive Council Resolution No. 13 of 2011. A repeat within a year doubles it, capped at AED 100,000. A late establishment card adds up to AED 1,000.

Is there a grace period after the licence expires?

It depends on the registrar. DMCC, SHAMS and Meydan give 30 days with no fine. RAKEZ gives none: AED 50 a day from the expiry date.

Can I renew a visa while the licence is expired?

No. The establishment card renews only against a valid licence, and without the card no visa is issued or renewed.

Do I still file a corporate tax return if the licence has expired?

Yes. The FTA treats an expired licence as not ending the business by itself. Until you deregister, returns stay due.

What happens if I never renew a free zone licence?

The zone suspends the licence, then cancels it along with the establishment card and visas. DMCC terminates after 90 days late, and reinstatement costs from AED 30,280. Your FTA obligations remain.

Can I close the company without paying the late fines?

No. The registrar accepts a cancellation application only after you pay them.

Sources

This guide is for information only and is not legal advice. Tariffs come from official DET, ICP and free zone documents as of 16 October 2026; the registrar shows the exact amount due when you apply. Lucent Legal is a management consultancy (DET licence No. 1192929): we help you total up what a company owes before you renew or close it, and prepare the documents.

Related: running a company in the UAE, cancelling a trade licence in Dubai, business and companies in the UAE.

Topic: Doing Business in the UAE

Get a lawyer's help: Company formation in the UAE

This material is for information only and is not legal advice. UAE law changes — a lawyer will assess how it applies to your situation.