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Official late-renewal tiers, other DMCC late charges, account sanctions and the federal penalties free zone companies still face.
Get Free ConsultationWhatsApp UsDMCC’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.
| 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.
| 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 |
Late filings and missed notices can also trigger sanctions under DMCC’s Company Regulations. DMCC can:
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.
| 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.
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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