Expired Trade Licence

Trade Licence Expired?
Here Is the Order to Handle It.

An expired licence does not close the company. The company, its visas, its bank file and its tax registration stay on record while penalties can keep building. Do not keep trading on it. Get the facts from your zone in writing, then choose: renew or reactivate, or close it properly.

By Imran Mirza, Founder & CEO, Xillion Group UAE. Born and raised in the UAE, with 18+ years of professional working experience, including nearly seven years at Barclays and ADCB and 12 years in UAE business setup. Last reviewed 29 October 2026.

Short answer

An expired free zone licence does not close the company, and penalties can build while it sits. Stop trading on it, then ask your zone in writing what renewal or reinstatement would cost and what formal cancellation would cost. RAKEZ publishes a late renewal penalty of AED 50 per day. The other zones publish no amounts on the pages we read. Meydan says reinstating a lapsed company usually costs more than renewing on time.

Zone by zone

What Each Zone Says After Expiry

Checked 29 October 2026 against each zone's own pages. Zones change rules and fees, so confirm in writing.

Consequences, money and the way back or out

ZoneAfter expiry, as publishedMoney, as publishedWay back or outSource
RAKEZA late renewal penalty applies from the expiry date. Third-party fines can fall on the Immigration file, Chamber of Commerce membership and the RAK DED licence, and RAKEZ takes no responsibility for them.AED 50 per day (renewal checklist, issue date 22 Jan 2025). RAKEZ also publishes an undated violations code that lists AED 1,500 per month, for up to 6 months, for failure to renew within 6 months of expiry, with the company treated as absconding after 30 days and struck off after 6 months. Ask RAKEZ which applies to you.Renew on Portal 360, or de-register. See how to cancel a free zone company.RAKEZ renewal checklist, violations code (no date on the document)
Meydan Free ZoneThe licence is treated as expired from the date on it. Meydan says not to trade on it: invoicing, new contracts and client onboarding carry risk. The authority decides the outcome, which can include cancellation or inactive status.Late charges may apply, no amounts given. Reinstating usually costs more than renewing on time.Meydan describes no reinstatement process, so contact them. A lapse is not a closure; a formal cancellation is needed to close.Meydan grace period article, cancellation article (updated 19 Oct 2026)
IFZAPenalties can start right after expiry. IFZA lists possible suspension, blocked visa renewals and new visa applications, banks asking for an updated licence or restricting accounts, and, with prolonged non-compliance, blacklisting and forced strike-off or liquidation.No amounts published. Monthly penalties start once the grace period ends; its length is not stated and depends on the authority.Standard renewal steps apply; IFZA says reinstating after the grace period becomes more expensive. All fines must be cleared before formal cancellation or liquidation.IFZA article (15 Jul 2026), Terms and Conditions (clauses 13 and 16)
DMCCThe company must not operate without a valid licence. A sanction is placed on the member account, penalties apply and DMCC may terminate the licence.Overdue fines are in DMCC's schedule of charges; the renewal page gives no amounts.If DMCC has terminated the licence, the company can apply to reactivate at any time before it is struck off the registry, stating the reason for non-renewal (guidance note, version 3, 15 Oct 2024).DMCC renewal guidelines, reactivation guidance note
SHAMS (Sharjah Media City)The Authority may suspend or cancel a licence for unpaid fees, including renewal fees and fines, by written notice (Art. 13.2(d)). No appeal is allowed (Art. 13.3).A fine of AED 1,000 may be imposed for a breach of the regulations (Art. 50.2); it is not tied to renewal. No renewal fee schedule.Ask SHAMS for its reinstatement or termination procedure. The regulations describe termination on request (Art. 13.1) and liquidation.SHAMS Licensing Regulations 2017 (undated copy)

Renew or Close: How to Decide

You still use the company

Ask for a written invoice to renew or reinstate, including any fines and the lease, Establishment Card and visa items. Clear it quickly, because costs only go one way. Then renew your visas and tell your bank.

You no longer need it

Do not let penalties run. Ask for a written cancellation quote and follow the closing order. See how to cancel a free zone company, and deregister for tax where you are registered.

You are not sure

Get both quotes in writing, renewal or reinstatement and cancellation, and compare them. Meydan suggests weighing dormancy, an activity change or a transfer before closing, where the zone allows them.

What To Do This Week

  1. Check the licence status and expiry date in your zone portal and write down the exact date.
  2. Stop invoicing, signing contracts or onboarding clients under the expired licence.
  3. Write to the zone and ask two questions: what is the total to renew or reinstate, and what is the total to cancel. Ask for both as written invoices.
  4. Check the visa, Establishment Card and lease status, because IFZA says an expired licence can block visa renewals.
  5. Tell your bank if it asks for an updated licence, and ask what it needs. IFZA says banks may restrict accounts after expiry.
  6. Choose renew or reactivate, or close. Do it within the window the zone gives you in writing.
  7. If you close, apply to deregister for Corporate Tax and VAT where you are registered, and keep every certificate.

What Can Go Wrong

Trading on an expired licence

Meydan says invoices, new contracts and client onboarding on an expired licence carry risk. DMCC says a company must not operate without a valid licence.

Visas and the bank file

IFZA says visa renewals can be blocked and banks may ask for an updated licence or restrict accounts. Both can take time to fix once the licence is back.

Penalties building in the background

RAKEZ publishes a daily late renewal penalty, and an undated violations code with monthly amounts. Ask the zone what is actually running on your file.

Being struck off

RAKEZ's violations code describes strike-off after 6 months, and DMCC can terminate a licence and strike a company off its registry. Reactivation is easier before that point, not after.

Official sources and dates checked

Related: Free zone licence renewal | How to cancel a free zone company | Company liquidation in Dubai | RAKEZ company setup | Meydan Free Zone | PRO services | Bank account rescue

Xillion Group UAE is a consultancy. It is not a licensing authority, a bank or a law firm, and approvals are decided by the authority. This page is general information, not legal, tax or investment advice, and nothing here is a guarantee.

Questions

Expired Trade Licence FAQ

Does an expired licence cancel my company?

No. Meydan and IFZA both say a lapse is not a closure. The company stays on record with its obligations until a formal cancellation. See how to cancel a free zone company.

It depends on the zone. Meydan and IFZA describe a grace period without giving its length, and RAKEZ applies a late penalty from the expiry date. We cannot confirm any zone's current window, so ask yours in writing.

RAKEZ publishes AED 50 per day. DMCC points to its schedule of charges. Meydan and IFZA publish no amounts. SHAMS lists a general AED 1,000 fine for breaches of its regulations. Ask for the figure in writing.

IFZA says banks may ask for an updated licence and restrict accounts after expiry. Your bank decides, so speak to it early.

IFZA says visa renewals can be blocked, new visa applications can be rejected, and existing visas are at risk of cancellation. Ask your zone what applies to your visa and plan for it.

Compare two written quotes: renewal or reinstatement including fines, and cancellation including third-party fees. RAKEZ publishes AED 3,000 plus third-party fees to cancel an office or co-working licence; most zones do not publish a renewal fee.

We prepare the documents, ask the zone the right questions in writing and follow up. Fees, penalties and approvals are set by the zone and the authorities, so we cannot promise an outcome.

Licence Expired?

Book a Call
with Imran Mirza.

Tell us your zone and the expiry date. We will help you ask the zone the right questions in writing and set out your options. 30 minutes, no commitment.