Expanding your business in the UAE is a smart move, given its dynamic economy and investor-friendly environment. However, staying competitive often means diversifying your operations—a step that requires adding new activities to your trade license. In the UAE, this process isn’t just about paperwork; it’s about aligning with strict regulations to ensure smooth and legal operations.
In this guide, we’ll take you through the detailed steps, key regulations, and expert tips for adding activities to your trade license in the UAE, ensuring your business scales legally and efficiently.
Steps to Add New Activities to Your Trade License
Submit an Application
- Mainland: Apply online via the Department of Economic Development (DED) portal or visit their office for an offline application.
- Free Zones: Use the respective Free Zone Authority portal (e.g., DMCC, ADGM, JAFZA) or visit their office for offline applications.
Select the New Activity
Browse the list of approved activities in your jurisdiction. If the desired activity isn’t listed, submit a request for a custom activity (subject to approval).
Provide Required Documents
Submit key documents such as the application form, current trade license, MOA, NOC (if applicable), and other jurisdiction-specific requirements.
Pay the Fees
Fees vary based on jurisdiction and activity type. Payments can be made online via portals or at the relevant authority’s office.
Review and Approval
The authority (DED or Free Zone Authority) reviews your application and documents. Once approved, the new activity will be added to your license.
Collect Updated Trade License
After approval, your trade license is updated to reflect the added activity. You can collect it online or in person.
Why Add New Activities to a Trade License in Dubai, UAE
Required Documents for Adding New Activities to Your Trade License
| Document | Description |
|---|---|
| Completed Amendment Application Form | Specifies the new activities to be added. |
| Original Trade License & Registration Cert. | Current trade license and registration certificate. |
| Initial Trade Name Approval Certificate | Certificate from the initial registration of your business name. |
| Proof of Initial Approval | Documentation confirming initial business activity approval. |
| Notarized Addendum for LLC & Court Agreement | Reflecting new activities in the LLC agreement or court agreement. |
| MOA or Establishment Card Copy | Details company structure and activities. |
| Valid Office Lease Agreement | Lease agreement for business premises. |
| Approvals from Government Authorities | Documents for additional approvals (if required). |
| NOC from Sponsor (if applicable) | Required for businesses with a local sponsor. |
| Passport & Visa Copies | Copies for partners/shareholders. |
| Proof of Sufficient Funds | Financial means to cover the stay (for Business Visit Visas). |
| Board Resolution (Corporate Shareholders) | Approval resolution for new activities. |
| Additional Documents | Other documents as required by the authority. |
Regulations for Adding Activities to Your Trade License in the UAE
Each jurisdiction in the UAE follows unique frameworks for updating your trade license:
-
- Mainland Jurisdiction: Businesses must comply with Federal Law No. 2 of 2015 and DED requirements. The Department of Economic Development mandates precise documentation, activity codes, and alignment with its permitted activity list.
- Free Zones: Authorities like Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone Authority (JAFZA), or ADGM enforce specific rules. For instance, DMCC allows businesses to add diverse activities as long as they align with permitted activities within the free zone, ensuring sectoral relevance.
- Offshore Jurisdictions: Companies must adhere to guidelines from regulatory bodies like RAK International Corporate Centre (RAK ICC), focusing on compliance with cross-border operations.
Authorities use standardized codes to categorize activities. For example, the DED has an activity classification list, while DMCC and ADGM maintain their own classification systems. These codes ensure businesses specify exact operations they intend to conduct, minimizing regulatory ambiguity.
Failure to update your license for added activities can result in:
-
- Fines ranging from AED 5,000 to AED 50,000, depending on the jurisdiction.
- Temporary suspension of operations or license cancellation.
- Legal consequences under Federal Law No. 2 of 2015 for operating unauthorized activities.
Check Your Current Trade License Status Before Application Process
For DED Licenses (Mainland):
- Visit the DED Website: Go to the Department of Economic Development (DED) official website at https://ded.ae.
- Search for License Information: Locate the ‘Search Licence Information’ service on the website.
- Input Your License Details: Enter your trade license number or other relevant details to get a snapshot of your current license, including permitted activities.
For Free Zone Licenses:
- If your business is registered in a Free Zone, you must check with the specific Free Zone Authority regarding the permitted activities under your current license.
- Most Free Zones offer an online portal to check your license details. For example, the ADGM Free Zone or DIFC has dedicated portals where you can access and review your license status.
- If the portal isn’t available, reach out to the respective Free Zone Authority’s customer support for assistance.
Pro Tips for a Smooth Process
To ensure the process of adding activities to your trade license goes smoothly, it’s important to stay informed, stay organized, and use available resources wisely.
Understand Regulations Early
Non-compliance in the UAE can lead to fines up to AED 50,000. Jurisdictions like DED, DMCC, and JAFZA have unique requirements. Research thoroughly to avoid errors.
Double-Check Your Documents
30% of applications are delayed due to incomplete paperwork. Keep your trade license, MOA, NOCs, and lease agreement up-to-date to avoid setbacks.
Consult an Expert
With over 600 licensed consultants in the UAE, these professionals can reduce processing time by up to 40%. They also help navigate updates, such as the 2023 Corporate Tax Law, ensuring your application is compliant.
Stay Updated on Fees
Licensing fees range from AED 500 to AED 10,000, depending on the jurisdiction and activity. For example, DMCC often includes bundled services, while mainland authorities may charge separately for approvals. Confirm current rates to avoid surprises.
Leverage Online Tools
Online portals significantly reduce processing times. The DED’s Business in Dubai app has cut license processing time by 30%, while free zones like DIFC and ADGM offer real-time application tracking. These tools streamline submissions and minimize errors.
FAQS (Frequently Asked Questions)
How long does it take to add new activities to a trade license?
The timeframe varies depending on the jurisdiction and complexity of the activity. Mainland applications via DED typically take 2-7 working days, while Free Zone applications might take longer.
Can I add multiple activities at once?
Yes, many jurisdictions allow multiple activities to be added simultaneously, provided they align with the regulations and your business category.
Are there restrictions on the type of activities I can add?
Activities must align with your business structure and licensing authority’s permitted list. For example, specialized activities like financial consultancy may require additional approvals.
Do I need a separate office for new activities?
Not always. Many activities can be added to the existing license using the current office space, depending on the licensing authority’s requirements.
What happens if I operate an unlicensed activity?
Operating without approval can result in fines, license suspension, or legal action. It’s always best to update your license before offering new services.
