Expanding your business in Dubai? Thinking about adding a new service or product to your existing trade license? Great idea! But before you jump in, let’s walk through the process to ensure everything goes smoothly and you stay compliant with UAE regulations.
Why Add Activities to Your Trade License?
Imagine this: your business is booming, and customers keep asking if you offer a service that’s not on your trade license. You could just go ahead and start offering it, right? Wrong. Operating outside your registered activities can lead to hefty fines—or worse, legal trouble.
Adding the activity to your trade license keeps things legal, opens up new revenue streams, and makes your business look more credible. Plus, having all your services officially listed makes it easier to work with banks, investors, and clients who want to see a legitimate, government-recognized business structure.
How to Add a New Activity to Your Trade License
Step 1: Check Your Current License
First things first—what does your current trade license allow you to do? Some activities fit well together under one license, while others don’t. If your new activity is too different, you might need a completely different license. Better to find out now than later to avoid unnecessary delays.
A quick check with the Department of Economic Development (DED) or your free zone authority will give you clarity. If your activity is permitted under the same license, great! If not, you may need a separate license or additional approvals.
Step 2: Choose Your New Business Activity
Dubai’s DED has a whole list of approved business activities. Your job? Find the one that best matches what you want to add. Each activity has a specific code, so be sure you’ve got the right one. Choosing the wrong code can slow down the approval process, so take your time researching.
It’s also a good idea to check whether the new activity aligns with your long-term business goals. Just because you can add an activity doesn’t mean you should—consider market demand, competition, and operational feasibility before making a decision.
Step 3: Get Initial Approval from DED
Once you’ve picked your activity, it’s time to ask the DED for approval. This involves filling out an application (the BR1 form) and submitting it with some documents. If everything looks good, they’ll give you the green light to move forward.
If your business is in a free zone, you’ll need to follow the specific procedures of that free zone authority. Some free zones process applications faster than the mainland, so it’s worth checking how long the approval might take.
Step 4: Check for Additional Approvals
Not all activities are straightforward. Some—like healthcare, food services, or finance—need extra approvals from other government departments. For example:
• A restaurant needs clearance from the Food Safety Department.
• A clinic requires approval from the Ministry of Health.
• Media businesses may need approval from the National Media Council.
• Financial services may require clearance from the UAE Central Bank.
If your new activity falls under a regulated sector, ensure you obtain all necessary No Objection Certificates (NOCs) before proceeding.
Step 5: Update Your Business Documents
If you run a Limited Liability Company (LLC), you’ll need to update your Memorandum of Association (MOA) to reflect the changes. This document must be translated into Arabic and notarized. It’s an extra step, but it’s necessary for compliance.
Additionally, if you’re operating under a sole proprietorship or partnership, check if any other legal amendments are required. Keeping your documentation accurate and updated will save you trouble in the long run.
Step 6: Submit Everything to DED
Now, it’s time to gather your paperwork and submit it to the DED. Here’s what you’ll typically need:
• Completed BR1 application form
• Your original trade license and registration certificate
• Initial approval from the DED
• Updated MOA (if required)
• Office rental agreement (Ejari)
• Any additional third-party approvals
• Passport copies of business owners and partners
The approval time varies depending on the nature of the activity and whether any external government bodies need to review your application.
Step 7: Pay the Fees & Collect Your Updated License
You’re almost there! Once the DED approves your application, they’ll issue a payment voucher. After paying the required fees, they’ll update your trade license to include your new activity. And just like that, you’re officially allowed to expand your business!
Once you receive the updated trade license, it’s essential to notify any relevant stakeholders, including banks, suppliers, and partners, about the changes. You may also need to update your business contracts and legal documents accordingly.
How Much Does It Cost?
The cost varies based on several factors, including whether your business is in the mainland or a free zone, and what kind of activity you’re adding. But here’s a rough estimate:
• Mainland business: Around AED 3,000
• Free zone business: Around AED 2,000
• Additional activity fees: Around AED 750 per activity
Some businesses may incur extra fees for third-party approvals or legal document updates, so be sure to budget accordingly.
Common Mistakes to Avoid
• Choosing the Wrong Activity Code: Picking the wrong business activity code can cause delays. Double-check it before submitting your application.
• Incomplete Documentation: Missing documents are the top reason for delays and rejections.
• Skipping the MOA Update: If you’re an LLC, your MOA must reflect the new activity—or your application could be rejected.
• Overlooking Third-Party Approvals: Some businesses require approvals from regulatory bodies, so don’t ignore this step.
• Forgetting to Renew Your License: Even after adding a new activity, remember to renew your trade license annually.
• Ignoring Market Demand: Just because you can add an activity doesn’t mean it’s a good business move. Make sure there’s demand before making changes.
Final Thoughts
Growing your business in Dubai is exciting, but you need to do it the right way. Adding an activity to your trade license ensures that you stay compliant while unlocking new business opportunities. If this process sounds overwhelming, don’t worry—you can always consult a business setup expert to guide you through it hassle-free.
Also, keep in mind that business regulations in Dubai may change, so it’s always a good idea to stay updated with the latest DED requirements and industry-specific rules.
Ready to expand? Follow these steps, avoid common mistakes, and watch your business reach new heights in Dubai!
