If you’re diversifying your business then you will be required to get approval of your new business activities. Given you must mention the operations you will be performing and get them approved before you get your license, you are also required to get authorization for any new activities you might add later to your business.

You have to understand the complete process to avoid any complications and conduct business legally. Here’s a comprehensive guide on how you can successfully get new services added to your trade license. For businesses already operating in Dubai, understanding the process of changing or amending trade license business activities in Dubai is essential to ensure compliance and avoid potential legal issues.

Why Update Trade License Activities?

If you’re a growing businessman in Dubai, at some point you may need to add new ventures and activities to your business. Diversification is an essential step toward growth. Adding operations means more revenue and capturing more markets. Resultantly, profits and growth are the operational reasons why you should increase your business activities.

Secondly, according to Federal Law No. 2 of 2015, it is essential for all license holders to comply with the scope of approved commercial activities. It is a legal requirement. If you start new operations without getting them registered under your license, you’ll land in trouble. You will face the following consequences:

Licensing Authorities in Dubai UAE

There are different licensing authorities in Dubai, UAE. You have to consult with the regulatory authority of your region/jurisdiction and get their authorization. For example, if you have a mainland license, consult with the Department of Economic Development (DED) and if you have a free zone license, consult with the regulatory authority of your region e.g. JAFZA, ADGM. Here are some of the major licensing authorities in the emirate of Dubai, UAE:

• DED: Regulates businesses in mainland jurisdictions.
• DMCC: Oversees businesses within the DMCC free zone.
• JAFZA: Governs activities in the Jebel Ali Free Zone.
• ADGM: Regulates free zone businesses in Abu Dhabi.
• DSO: Manages businesses in Dubai Silicon Oasis.
• DAF: Oversees businesses operating in the Dubai Airport Free Zone.

You have to apply to your relevant authority to update your license. Each body has its specific classification of codes and license categories. You have to understand and comply with them.

Types of Licenses And What They Cover in Dubai

Steps to Add Activities to Your Trade License

The process is standard and smooth. Here’s a step-by-step guide that you can follow to successfully update your license without any challenges or complexities.

Submit an Application

Submit an application to the authority relevant to your jurisdiction.

• For the Mainland, apply online through the Department of Economic Development (DED) portal or visit a DED branch for in-person assistance.
• For Free-Zones, use the relevant Authority portal (e.g., DMCC, ADGM, or JAFZA) or submit your application at their office.

Choose the New Activity

• Browse the approved activity list specific to your jurisdiction.
• If your desired activity isn’t listed, submit a request for a custom activity. Note that this may require additional consent.

Prepare and Submit Required Documents

• Provide essential documents. Several documents may be required based on the authority’s guidelines.

Pay the Required Fees

• Fees vary depending on the jurisdiction and type of activity.
• Payments can usually be made online or at the relevant authority’s office.

Await Review and Result

• The authority will review your application and verify the submitted documents.
• If everything is in order, your request will be approved.

Collect the Updated Trade License

• Once approved, the amended business license will include the additional activity.
• You can collect it online through the authority’s portal or in person at their office.

Required Documents:

• Valid Office Lease Agreement
• Passport & Visa Copies
• NOC from Sponsor (if applicable)
• Memorandum of Association (MOA) or Establishment Card Copy
• Board Resolution (Corporate Shareholders)
• Completed Amendment Application Form
• Proof of Sufficient Funds
• Approvals from Government Authorities
• Initial Trade Name Approval Certificate
• Notarized Addendum for LLC & Court Agreement
• Original Trade License & Registration Cert.
• Proof of Initial Approval

Challenges and Solutions

Understanding Complex Regulations

• Challenge: Each jurisdiction e.g. DED, DMCC, JAFZA has unique guidelines and codes for commercial activities. If you misinterpret these requirements, you will be led to non-compliance, delays, or heavy fines.
• Solution: Conduct in-depth research or consult regulatory resources provided by the relevant authority. Stay updated on evolving regulations like Federal Law No. 2 of 2015 to ensure your activities align with the law.

Incomplete or Incorrect Documentation

• Challenge: If you’re Missing paperwork or it’s outdated, such as NOCs, MOAs, or lease agreements, It can delay approvals by weeks. Up to one third of applications face delays due to errors in documentation.
• Solution: Create a checklist of required documents before submission. Regularly update key documents, including your lease agreement and trade license, to ensure accuracy. Seek expert guidance to verify your paperwork.

Different Fee Structures

• Challenge: Fees for updating activities vary widely, ranging from AED 500 to AED 10,000 depending on the activity and authority. Surprise charges can arise due to bundled services or additional approvals.
• Solution: Contact your relevant authority to confirm the exact costs for your activity and jurisdiction. Always budget for potential additional endorsement or ancillary fees.

Time-Consuming Process

• Challenge: Waiting for authorization, especially during peak application seasons, can disrupt business timelines. Manual submissions further increase processing times.
• Solution: Use online portals like the DED’s Business in Dubai app or application platforms, which offer real-time tracking and significantly reduce processing times by up to 30%.

Navigating Legal and Tax Updates

• Challenge: Recent changes, such as the introduction of the Corporate Tax Law, can complicate compliance for businesses unfamiliar with new rules.
• Solution: Engage licensed business consultants who specialize in Dubai’s regulatory environment. They can expedite your application by up to 40% and ensure compliance with the latest laws.

Adapting to Specific Activity Classifications

• Challenge: Desired activities might not appear in the predefined activity lists, requiring requests for custom activities and additional approvals.
• Solution: Study the jurisdiction’s activity list beforehand and consult with the authority if your activity isn’t listed. Be prepared for extended approval times for custom requests.

Pro Tips for Success

• Stay Informed and Organized: Keep a record of all regulatory updates and ensure your documents are current and complete.
• Consult Professionals: Hiring experienced consultants can save time, minimize errors, and provide peace of mind during the process.
• Use Digital Tools: Online applications and tracking portals offered by authorities like DED, DMCC, and ADGM streamline the process, reduce manual errors, and cut processing time.
• Plan Financially: Always budget for hidden fees and prioritize cost-efficient jurisdictions when choosing between options.
• Act Early: Start the process well in advance to account for unforeseen delays or additional requirements.

Frequently Asked Questions (FAQs)

1. What is the first step to include new operations in my license?
The initial step is to apply for authorization through the relevant authority’s platform, such as the DED website. This ensures your business setup process remains seamless and complies with regulations within the UAE.

2. Can I add new activities to my license at any time?
Yes, you can update your license at any time. However, the process depends on the type of trade licenses you hold and the nature of the activities you wish to include. Make sure to review the requirements for activity selection before proceeding.

3. What documents are required to update my trade license in the UAE?
Documents often include an LLC agreement (if applicable), valid lease agreement, NOC from the sponsor, and proof of funds. The specific requirements depend on whether your license covers limited liability companies or other business structures.

4. Are there any restrictions on what I can add to my license?
Yes, certain activities require additional permissions or fall under related activities that must align with your current operations. Always consult the relevant authority to ensure you operate legally when adding business activities in Dubai.

5. How are the fees calculated for adding business operations?
Fees vary based on your activities and the relevant authority. For instance, Dubai offers flexibility in costs, but some authorization may require extra payments, especially for municipality authorizations.

6. What should I do if my activity is not listed in the authority’s options?
If your desired activity is not listed, you can submit a request for a custom activity. This process may require additional steps, such as obtaining authorization from multiple bodies to ensure compliance with United Arab Emirates regulations.

7. Can I update my license if I’m operating in a free zone?
Yes, DMCC or JAFZA, etc., allow businesses to expand their operations. The steps and fees may differ slightly from mainland requirements, so it’s essential to follow guidelines specific to your jurisdiction.

8. Why is activity selection important for businesses within the UAE?
Activities define your scope of operations and dictate the legal framework under which you function. Choosing appropriate activities ensures you comply with laws and maximize opportunities for growth.

9. How can I avoid delays during the authorization process?
To avoid objections or delays, prepare all required documents in advance, including your amended LLC agreement (if applicable). Submitting complete paperwork through the website or relevant portal ensures faster processing.

10. Do I need municipality authorization for all activities?
Not all activities require authorization, but certain activities, such as those related to construction or food services, do. It’s important to verify these requirements before submitting your application.