33,874 licences renewed through ‘Auto Renewal’ service: Dubai Economy

The Auto Renewal service of Dubai Economy accounted for 68 percent of the trade licences renewed (49,997) during the first four months of 2020. Among them 73 percent were commercial, and 24 percent were professional.

The Business Registration & Licencing, BRL, sector in Dubai Economy also witnessed a 62 percent increase in Auto Renewal transactions during this time as compared to the same period of 2019.

The economic stimulus package launched by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, on the 12th March 2020 to support business continuity in the emirate has made the process of renewing, as well as obtaining, a licence easier. The package enables companies to renew their trade licences without a renewed lease contract, in addition to offering a 12-month easy installment option for fee payments with zero down payment.

Dubai Economy in a press release said that the increase in Auto Renewals reflects the progress in the efforts towards achieving the goal of the Government of Dubai to go completely paper-free by 2021.

Previously, the customer’s journey to renew a licence included four visits and seven steps: ‘Inquiring about the service’ on the website or through the call centre; then ‘Applying for the service’ (visit) to submit the required documents and obtain external approvals, followed by ‘External approvals’ (visit) based on the business activity and visits to government agencies to obtain approvals; attestation of ‘Lease/real estate ownership certificate’; ‘Submitting the required documents’ (visit); ‘Dubai Municipality payment voucher’, and finally, ‘Paying the fees’ (visit).

“Now, business owners can renew the business licence through the Auto Renewal service in one step by sending a text message with the trade licence number to ‘6969,’ following which they will receive a ‘payment voucher.’ They can then complete the payment through any of the payment channels provided in the text message. This is done without any visits and zero paperwork,” Dubai Economy explained.

A BRL report showed that ‘Limited Liability Companies’, LLC, topped the list of legal form of the licences auto-renewed, followed by ‘Sole Proprietorship’ and ‘Civil Companies’ during the first four months of 2020. The legal forms also included One-Person Limited Liability Company; Branches of companies based in other Emirates; Branches of Foreign Companies; Branches of Free Zone Companies; General Partnership; Limited Partnership; Private Joint-Stock Company; Public Shareholding Company and Government Liaison Office.

No external approvals are needed to complete the auto renewal except for four commercial activities, Dubai Economy said, explaining that transportation by public taxi, transportation by limousine, rent-a-car, and non-emergency transportation services, require the approval of the Roads & Transport Authority, in addition to two others – inbound and outbound tours – related to the Department of Tourism & Commerce Marketing.

“Business owners must update their personal data for the BRL sector team to provide services more effectively, as the sector seeks to strengthen the mechanisms necessary to conduct commercial activities in Dubai through following the latest technology and smart programmes,” it concluded.