Questions & Answers
How can I request the free zone authority to waive my license renewal fines after they agreed on it?
Hello,
"Late renewal charges" for my freezone license are adding up.
Last year, the free zone refused to waive the late renewal charges, but then agreed to do it. Still, it had to be approved by the free zone director and then by the Dafza general director, which took about a month.
It was a month during which I had an office this time. Still, no license to operate, and for 2025, the accountant is late because he promised to deliver the audit report in early January, and then was away on pilgrimage.
I found out this week, I also have a medical certificate because I am not in condition to work and can renew it by any doctor in the UAE right now, so I have to pay a 6-month fine, which is a total of AED 6000.
The free zone this time does not want to waive off anything and blames me for the situation.
Is there a way that I can pay and dispute the late renewal fines later?
Or paying means I accept and can't dispute?
It is clear that I was wronged initially, even for the lease, which they partially admitted to last year.
Greetings,
Thank you for reaching out.
In your case, paying the late renewal fines does not automatically mean you waive your right to dispute them later.
You may still dispute the fines even after payment, but it’s crucial to carefully review the terms and communicate with the free zone authority regarding the delay and the medical certificate.
Given the complexities surrounding your situation, including previous issues with the lease and fines, we recommend scheduling a consultation to explore your options and develop an effective strategy to resolve the matter.
Please book a consultation with "Future Vision for Advocacy and Legal Consultancy" to discuss your case in detail and get expert guidance.
We are happy at Future Vision Law Advocates and Legal Consultancy to assist you and provide the best legal services that meet your needs.
To contact us, you can call or WhatsApp us.
Dear Benaziz,
I understand your concerns regarding the late renewal charges for your free zone license and your desire to dispute these fines while ensuring compliance. Below is a detailed response addressing your situation:
Key Points to Consider
1. Paying and Disputing Fines:
- Paying the fines does not necessarily mean you accept them without recourse. You can dispute the charges after payment by filing a formal complaint with the free zone authority, explaining the circumstances that led to the delay (e.g., medical condition and the accountant’s delay).
- Ensure you retain all relevant documentation, including medical certificates, correspondence with the accountant, and previous approvals for waivers, to support your case.
2. Legal Weight of Late Renewal Charges:
- Free zones typically enforce late renewal penalties as per their regulations, and these fines accumulate based on the duration of non-compliance. However, exceptional circumstances (such as health issues) may warrant reconsideration if presented formally.
3. Options for Disputing Fines:
- Formal Appeal: Submit a written appeal to the free zone director or governing authority, providing evidence of your medical condition and other factors that contributed to the delay.
- Escalation: If the free zone authority denies your request, you may escalate the matter to higher authorities, such as the Dubai Free Zone Council or relevant government entities overseeing trade licenses.
4. Impact of Payment on Future Operations:
- Paying the fines ensures that your license remains valid and avoids further penalties or operational restrictions. It also prevents potential legal actions or blacklisting that could impact your business activities.
Recommended Steps
1. Renew License Immediately:
Pay the AED 6,000 fine to renew your license and avoid additional penalties or operational halts. This ensures compliance and allows you to continue business activities legally.
2. File a Dispute After Payment:
Once payment is made, submit a formal dispute letter to the free zone authority detailing your case and requesting a waiver or refund of fines based on exceptional circumstances. Include supporting documents such as:
- Medical certificates.
- Proof of communication with the accountant regarding delays.
- Evidence of previous waiver approvals (if applicable).
3. Seek Legal Assistance:
Consult a lawyer specializing in UAE business law to guide you through the dispute process and ensure proper representation if escalation is required.
4. Prevent Future Issues:
- Set reminders for renewal deadlines to avoid delays in future years.
- Work with reliable service providers for audit reports and other requirements.
Time Frame and Costs
- Time Frame: Payment can be processed immediately, while disputes may take several weeks, depending on the free zone authority procedures.
- Costs: Legal fees for filing disputes may range between AED 3,000–10,000, depending on complexity.
Should you require further assistance or legal representation, please let me know, and I will be happy to guide you through this process.
Best regards,
ABDUL WAHIED
Dear questioner
Pay the fines before it escalates further, but try complaining to the authority for reducing the fines and explain the circumstances along with the supporting documents.
If you need further assistance, kindly share your WhatsApp number.
