How Do You Add Activities To Your Trade License In Dubai, UAE?

Running a business in the UAE offers substantial benefits due to its favorable opportunities for entrepreneurs. Establishing a business in the United Arab Emirates is a clear and simple procedure. Anyone can initiate a business, though all businesses and companies must obtain a trade license from the relevant authorities to operate within the UAE lawfully. 

With this trade license, entrepreneurs can benefit from the growing UAE landscape to expand their businesses to earn more capital and enhance their market approach. However, it is important to update this documentation if your business expands into new areas and you want to include more activities that were not initially included in the trade license.

This article covers the complete process of adding activities along with the requirements and important considerations to amend and update your trade license in the UAE. The process can be easily managed with the help of expert guidance from business setup experts at Now Consultant.

Requirements To Add Activities In Trade License

You can request a trade license amendment when renewing your business or expanding its activities. The following are the requirements to add activities to the trade license:

1. Announcement in the Local Newspaper Both in Arabic and English

These conditions apply if you are:

• Converting your business from commercial to industrial or vice versa.
• Changing the legal structure of the company.
• Decreasing the company’s capital.
• Modifying the company’s ownership.
• Changing the business name.

 2. Attesting the Notary Public Contract Annex

These apply if you are:

• Changing the legal structure of the company
• Changing the capital
• Adjusting shareholder shares
• Transferring ownership or selling the business
• Updating the manager’s name on the license

 3. Economic Certificate of Registration Ministry 

These apply if you are:

• Updating the manager’s name for a foreign business or branch under the trade license
• Changing the name of a foreign company or branch
• Updating service agents for a foreign company or branch
• Changing the nationality of the foreign investor listed on the trade license
• Altering the legal structure of a branch or foreign company
• Requiring approvals from specific entities
• Possessing the current trade license
• Completing the application form
• Providing a Power of Attorney

Documents Required to add activities to your UAE trade license

The required documents can differ based on your business structure and the activities you intend to add. However, common requirements often include:

• Original business registration and license certificate
• Copy of the lease agreement for the company office space
• Board resolution from the parent company authorizing the addition of new activities to the trade license
• Non-Objection Certificate (NOC)
• Amended Memorandum of Association (MoA) reflecting the necessary changes
• Business registration and license application form
• Initial company name approval certificate from the Registry Office in the UAE
• Approval from the Department of Economic Development (DED)
• Attested amendments to LLC and court agreements

Process To Add Activities In Trade License In UAE

Expanding the activities covered by your trade license comprises the following clear step-by-step process:

Initial Approval From the DED

The first step is to obtain approval from the Department of Economic Development (DED) to add the activities to your license. The DED is the regulatory authority responsible for managing and administering business activities in Dubai.

Submit Application

After receiving approval from the DED, your next step is to submit a formal application to amend your trade license. This usually requires filling out the BR1 form. The form contains all the details for the specific changes of activities that you intend to implement.

Require NOC

Depending on the activities you are adding to your trade license, you need a No Objection Certificate (NOC) from relevant authorities. As an example, if you want to add an activity that involves handling food, you will require an NOC from the Dubai Municipality.

Agreement Formalities

For Limited Liability Companies (LLCs), there are specific legal procedures to follow. This includes preparing a supplement to your LLC Agreement by a legal translator and having it attested by a notary public at the Department of Economic Development (DED). Furthermore, your company needs to complete a Court Agreement at the notary’s office.

Submit Documents and Pay Fee 

At this step, you need to collect all the required documents as discussed above, along with the completed application form, necessary NOCs (if applicable), and attested agreements. You need to submit all the documents to DED and pay the processing fee for the amendment to your trade license.

Collect Your Updated Trade License:

Upon completion of the processing and payment, your updated trade license, including the newly added activities, will be issued to you.

Is It Necessary To Modify The Trade License To Add Any Activity?

Yes, it is necessary because when your company expands and diversifies, you may need to broaden your scope of operations. To maintain legal compliance and secure proper authorization for adding new activities and expanding the scope of business, it is necessary to modify your existing trade license.

Consideration Before Amending Activities in Trade License:

While the core process outlined above offers a general framework, there may be additional considerations based on your specific circumstances. Here are a few examples:

Free Zone Vs. Mainland Companies:

Amending trade licenses can vary depending on whether a company operates under a Free Zone business license or a UAE mainland business license. Free Zone authorities usually have their own specific regulations and procedures for these amendments.

Activities Requiring Additional Permits:

Some business activities may require obtaining additional permits from specific government bodies beyond the approval of the Department of Economic Development (DED). For example, running a restaurant may need clearance from the Department of Food Safety. It is important to investigate any extra permits required for your new activities and include them in your planning.

Changes To Business Structure:

Suppose you are amending your trade license while also altering your company’s legal structure, such as adding new partners or changing the shareholding arrangement. In that case, you need to handle both the changes simultaneously.

Require Time Frame:

The time it takes to process amendments can differ based on the complexity of your request and the Emirate in which your business is located. It is recommended to set a reasonable timeframe for the entire process.

Associated Fee:

The fees for amending your trade license can vary depending on the Emirate and the number of activities being added. It is advisable to get expert guidance from business setup experts about the applicable fees.

How Can We Help You?

Do you want to expand your business by adding more activities to your trade license? You can complete the process of adding activities to your trade license; however, amending or adding activities to your trade license can be a time-consuming and complex process.

The best way to handle this is by hiring services of business setup professionals such as Now Consultant. Our experts will manage all aspects, guiding you through the necessary documents and handling all formalities with the DED and UAE government authorities.

We save you from unnecessary delays or rejections and simplify the entire procedure. We manage your trade license application and communicate with all relevant local departments and authorities, mitigating any risk of fines and penalties.

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