If you are planning to expand your business in Dubai, one of the most effective ways of doing this is by adding new activities to your existing trade license. Expanding your trade license gives you the guarantee of compliance with the legal framework while reaping the rewards of the new opportunities. But how do you exactly do it? Is that complicated or can you easy? Well, to know what it takes to get it and more on e-commerce license in UAE, continue reading the blog ‘How to Expand Your Trade License in Dubai by Adding New Activities’.
Let’s look at how you can expand your trade license in Dubai by adding new activities!
How to Add Activities to Your Trade License
Adding a new activity to your trade license in Dubai involves a few simple steps even if it is a tourism license in Dubai. It is also important to cross-check all the regulatory requirements as mandated by the Dubai Department of Economic Development (DED) or other free zone authorities.
Documents required:
Before you start, you have to gather the necessary documents to avoid delays. Here is what you’ll need:
- A copy of your current trade license
- Passport copies of all business partners
- Emirates ID copies of business partners
- A Memorandum of Association (MOA)
- Lease agreement (Ejari)
Once you have these in hand, you are ready to move to the next step!
Step 1: Initial Approval
One must get initial approval from the DED to add new activities. This is because one gets to ensure the new activity to be added is aligned with the existing business regulations in Dubai.
How to Apply:
- Submit a request via the DED website or a service center.
- Choose the new business activity from the DED’s approved list.
- Make sure the activity does not conflict with your current license.
Once your request is submitted, you will get feedback within a few days. Upon approval, you can move on to the next step.
Step 2: Application Submission
After receiving initial approval, you must submit an application for amendment to your trade license by completing the necessary forms and submitting these forms to the relevant authority; DED for mainland companies, or the relevant free zone authority.
You must double-check all your documents to ensure there are no discrepancies in information. Any mismatch between your existing license and the new documents could cause delays.
Step 3: Non-Objection Certificate (NOC)
Depending on the nature of your business, you may also need a No Objection Certificate (NOC), particularly if your company is in a regulated industry or you have leased property.
The NOC is required from:
- The landlord (if you are operating from a leased property).
- Any third-party partners, if applicable.
- Relevant regulatory authorities for specialized activities.
This step ensures that all parties are aligned with the new business activity.
Step 4: Agreement Formalities
If you have partners or shareholders, you will need to alter your Memorandum of Association (MOA). The MOA says with whom your company is to be associated, its capital, and the business which the company is intended to carry out.
How to Update:
- Engage with a legal advisor to update the MOA.
- Ensure that the new activity is listed in the MOA with clear descriptions.
For some activities, specific terms and conditions may need to be added. Make sure these align with Dubai’s legal requirements.
Step 5: Attend at Notary
Once the MOA is amended, you and your business partners should head over to a notary to have the updated document notarized. This formalizes your change, notifying the rest of the world regarding your new business activity.
Step 6: Submit the Required Documents
After notarization, send all the documents required back to the DED or free zone authority for which you applied. These include:
- The updated MOA
- A copy of your current trade license
- Initial approval documents
- NOC (if applicable)
- Any other relevant permits or approvals
Step 7: Receive New Trade License
Upon successful submission, you will receive your amended trade license with the new business activity added. This usually takes a few working days, which depends on the authority you are dealing with.
Congratulations! Your business is now legally set to add new products or services.
Things to Remember for Adding Activities in a Trade License in Dubai
Expanding your business license by adding new activities can seem overwhelming, but keeping a few key things in mind can simplify the process.
Apply for a License Amendment
The most important step is applying for a license amendment through the DED or the relevant authority. This involves submitting all required documents and paying the associated fees. It’s worth noting that every new activity may have different requirements or regulations.
Choosing a Business Activity
Ensure that you have chosen the right business activity from the list and is approved by the DED. Also, see to it that the new activity does not conflict with your current business as well as against the business laws of Dubai.
Regulations for License Amendment Process
The license amendment process is regulated by the DED for mainland companies and by the respective authorities for free zone companies. Be aware that some activities require additional permits, depending on the industry and the level of regulation.
Third-Party Approvals
Some business activities will require approvals from third parties, such as in regulated industries like health or finance, and so may be specific authorities or bodies governing the city of Dubai.
Considerations for Specific Scenarios
Adding new activities isn’t always straightforward. It’s important to understand how your business structure, location, and industry regulations might impact the process.
Free Zone vs. Mainland Companies
The procedure for adding activities differs based on whether your business operates in a free zone or the mainland. Free zone companies need to go through their respective authority, while mainland companies deal with the DED.
Mainland businesses generally have more freedom when it comes to adding activities, while free zone companies may have restrictions based on the nature of their license.
Activities Requiring Additional Permits
Some activities, like import/export, e-commerce, and hospitality, require extra permits beyond a trade license amendment. These can involve additional fees and documentation, so factor this into your expansion plans.
Changes to Business Structure
If adding new activities significantly changes the scope or structure of your business, you may need to update other legal documents, such as your MOA, or even register a new business entity.
