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DMCC Fines and Penalties: Late Renewal and Other Charges

Official late-renewal tiers, other DMCC late charges, account sanctions and the federal penalties free zone companies still face.

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DMCC’s biggest penalty is for late licence renewal: nothing for the first 30 days after expiry, then AED 2,500, then AED 5,000, and after 90 days the licence is terminated. Below is every DMCC late charge we know of, plus the federal tax penalties DMCC companies also face.

Late licence renewal penalties

Days after licence expiry	Penalty (AED)
0 – 30 days	0
31 – 60 days	2,500
61 – 90 days	5,000
More than 90 days	Licence terminated by DMCC

DMCC reduced these from AED 2,500 / 5,000 / 7,500. The tier is set by when your renewal request is complete, not when you first submit it: if DMCC returns a request filed on day 30 and you reply on day 31, the penalty rises to AED 2,500.

Termination is far more expensive than any fine: visas, bank accounts and contracts all depend on a live licence. See DMCC licence renewal.

Other DMCC late charges

Charge	Official AED
Late renewal of an employee’s DMCC Permanent Identity Card	100 per month, capped at 1,000
Late renewal of a Business Centre lease (flexi desk)	500 per month
Late instalment payment (retail units)	500 per unit
Bounced cheque (retail)	1,000
Cancelling a licence amendment request	515

Sanctions on your DMCC account

Late filings and missed notices can also trigger sanctions under DMCC’s Company Regulations. DMCC can:

restrict or suspend services on your portal account;
impose a fine;
suspend or terminate your licence;
strike the company off the register.

A sanction also blocks routine requests such as an officer change. Common triggers include a late audited financial statement and not notifying a change of director or manager within 14 business days (see change of director or manager). If you are already sanctioned, see DMCC account sanctions.

Federal penalties DMCC companies also face

Obligation	Penalty (AED)
Corporate tax registration not made on time	10,000
Corporate tax return filed late: first 12 months	500 per month
Corporate tax return filed late: from month 13	1,000 per month

Under Cabinet Decision No. 75 of 2023, as amended. The Federal Tax Authority has offered a waiver of the late-registration penalty for businesses that file their first return within seven months of the end of their first tax period. Being in a free zone does not remove the duty to register; see DMCC corporate tax.

How to avoid every one of these

Start renewal 30 days before expiry and keep the audit, lease and establishment card in sync. Our DMCC compliance calendar lists every date.
Reply to any returned DMCC request the same day, because the penalty tier moves while you wait.
Notify officer and shareholder changes within 14 business days.
Register for corporate tax and diary your first return deadline.

Facing a DMCC penalty or sanction?

Tell us what DMCC has flagged. We will tell you what is owed, what can be cleared first, and how to get your account working again.

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DMCC fines and penalties: FAQs

What is the DMCC penalty for late licence renewal?

Nothing for the first 30 days after expiry, AED 2,500 from day 31 to 60, and AED 5,000 from day 61 to 90. After 90 days DMCC terminates the licence.

Is there a grace period for DMCC licence renewal?

Effectively yes: DMCC charges no late fee in the first 30 days after expiry. But the licence is still expired, which can block visas and other services, so renew before the expiry date.

What happens if my DMCC licence expires for more than 90 days?

DMCC terminates the licence. Bringing the company back is far harder and costlier than paying a late fee, so act before day 90.

What is the fine for late renewal of a DMCC Permanent Identity Card?

AED 100 per month, capped at AED 1,000, according to DMCC’s Schedule of Charges.

Do DMCC companies pay corporate tax penalties?

Yes. Free zone companies must register for UAE corporate tax. Late registration carries an AED 10,000 penalty, and late returns AED 500 a month for the first year, then AED 1,000 a month.

Related DMCC services

Source & review. DMCC’s official Schedule of Charges and its revised late-renewal penalty FAQ, and DMCC Guidance Notes on officer changes (October 2025), checked October 2026. Corporate tax penalties from Cabinet Decision No. 75 of 2023 as amended. Reviewed by the Pro24 Advisory Team.