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What happens if I operate without a trade license and receive payment for my work?

Dear Lawyers,

What happens if I operate without a trade license (while the trade license is in process) and receive money for the work I have done?

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Engy Nabeel Advocates & Legal Consultants
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1 Dec 2024, 15:54

Dear Questioner,

This is against the law, so you should not receive money until the commercial license is completed.

If you have any other inquiries, contact us on phone number [----------].

1 Dec 2024, 15:56

I understand that. I'm asking what legal action can be taken if that is done.

1 Dec 2024, 16:06

The legal procedure is to complete the commercial license and not receive any payments until the license is finalized; otherwise, you may face violations that could lead to the cessation of commercial activity.

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London Center for Legal Consultancy Office
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2 Dec 2024, 09:07

Hello,

Operating without a valid trade license, even if it’s in process, is considered a violation under UAE law. You may face fines or other penalties. To avoid legal risks, we recommend seeking legal advice promptly.

You can contact us via WhatsApp, phone, or email.

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Rashid Khalil Obaid Advocates and Legal Consultancy
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2 Dec 2024, 17:39

Operating a business without a valid trade license in the UAE can have serious legal and financial consequences.

If a complaint is filed with the authorities, it can result in fines, business closure, and blacklisting.

If you need further clarification, feel free to ask.

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Al Fahad Legal Consulting
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2 Dec 2024, 23:28

Dear Questioner,

Operating without a valid trade license, even if it is in process, is considered illegal in the UAE. Receiving payments during this time could lead to penalties, fines, and possible legal action.

It is advisable to complete the trade license process before conducting any business activities. For further guidance or support, do not hesitate to contact us.

Regards,

Mo. Salah

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Mohamed Bakheet Advocates & Legal Consultants
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4 Dec 2024, 16:50

In the UAE, operating a business without a valid trade license is a legal violation. Even if the license is still being processed, starting a business and collecting money before completing the licensing process can lead to legal action.

Possible consequences of operating without a trade license include financial fines. The UAE authorities impose financial fines on individuals or companies that conduct business activities without a valid license.

These fines can reach AED 50,000 or more, depending on the type and size of the violating activity.

Laila Hamza Al Mulla Advocates and Legal Consultants
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5 Dec 2024, 12:51

Dear questioner,

The trade license is the validating document for conducting business legally. If you face a delay in obtaining the license, proceed with work cautiously and only with reliable individuals.

Keep payments under control and try to take on bulk work only after obtaining the trade license.

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