Adding new activities to your trade license in Dubai can be confusing and time-consuming. Are you struggling to keep up with the paperwork and approvals needed? Do you find the process daunting with all the steps involved? We’ll walk you through the essential steps to make this process easier and faster.
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How to Add Activities to A Trade License in Dubai
To add activities to a trade license in Dubai, follow these detailed steps:
Step 1: Work with a Business Setup Consultant
Start by partnering with a business setup consultant. They know UAE and Dubai business regulations well and can handle the whole process for you. They ensure all paperwork is correct and submitted on time, which helps avoid delays as well as rejections. Consultants can also advise on which activities you can add based on your current license.
Step 2: Obtain Initial Approval from the DED
Next, apply for initial approval from the Department of Economic Development in Dubai. Submit a request detailing the new activities you want to add. The DED reviews this to ensure the activities follow Dubai’s regulations. This approval shows that your proposed changes are acceptable, letting you move forward with the process.
Step 3: Apply for Trade License Amendments
Once you have initial approval, fill out the BR1 form to apply for changes to your trade license. This form needs detailed information about your company and the new activities. Make sure all company directors or shareholders sign the form. This step formally tells the DED about the changes you want to make.
Step 4: Obtain a No Objection Certificate
You have to get a No Objection Certificate to add activities to your trade license. This document shows that there are no objections to your new activities. Depending on the activities, you might need NOCs from specific government departments. For example, if you are adding health-related activities, you need an NOC from the health authority.
Step 5: Complete Legal Formalities
Prepare an addendum to your LLC Agreement through a legal translator. This addendum must reflect the new activities and be translated into Arabic. Then, have it attested by a Notary Public at the DED. You also need to complete a Court Agreement by signing legal forms in front of a notary. These steps make sure all changes are officially recorded and legal.
Step 6: Submit Required Documents
Submit these documents to the DED:
- Original trade license and registration certificate
- Completed amendment application
- Copy of your office lease contract
- Initial approval certificate for your company name
- Parent company board resolution to add activities (if applicable)
- Copies of ID for all shareholders or directors
- Proof of initial approval and NOCs from relevant authorities
Ensure all documents are correct and complete to avoid delays. The DED will check your documents for compliance.
Step 7: Receive the New Trade License
After the DED approves your application and documents, you will get an email to make the payment for your new trade license. You can pay online or at authorized service centers. Once payment is made, the DED will issue your updated trade license, officially allowing you to start the new activities. The new license will list all your approved activities, including the new ones.
Things to Consider When Updating Your Trade License
When updating your trade license in the UAE, there are some important factors to keep in mind to have a smooth and compliant process:
- Applying for a Trade License Amendment: Amend your trade license to add activities or make changes during renewal. You can change your trade name, capital, address, partners, local agents, and management details.
- Regulations for Trade License Amendments: Check rules from your licensing authority and business zone. For example, see guidelines for business setup in Sharjah Free Zone or Dubai Mainland.
- Third-Party Approvals: Some activities need approvals from government bodies or trade groups. Get and submit these when applying for changes.
- Changing Business Address: Update the Memorandum of Association (MoA) with an addendum to change your address. Have it attested by a Notary Public at the DED. Include this with your application.
- License Activity Code: Each business activity has a unique code on your trade license. Ensure new activities fit these codes.
- Consequences of Not Renewing Your Trade License: Not renewing leads to fines (AED 5,000 plus AED 250 daily), blacklisting, and cancellation of employee visas, sponsorships, and your residence visa.
- Activities Requiring Additional Permits: Some activities need extra permits from specific bodies. For instance, a restaurant needs approval from the Department of Food Safety.
- Changes to Business Structure: If you change your company’s structure, like adding partners or changing shareholding, do this when updating your trade license. Legal advice can help manage these changes.
What Is The Fee For Updating Trade License?
The fee to update your trade license in Dubai depends on the authority. DMCC charges AED 3,000 plus AED 1,515 for additional activities. Dubai DED charges AED 500 for the amendment and AED 20 for the Knowledge and Innovation Fee. If you update during renewal, you pay the license fee plus AED 500 for the amendment. Always check with the authority for the latest fees.
Common Mistakes With Adding Activities To Trade License
Here are some common mistakes and pitfalls you should be aware of, if you want to follow through with the whole process by yourself.
Keep in mind, this is very unlikely to happen when you’re working with people that specialize in such legal processes.
- Missing Documents: Not providing all the required documents, like the amended MOA, board resolution, and copies of your current trade license, can slow down the process.
- Wrong Activity Choice: Picking activities that don’t match your existing license or business structure can get your application rejected. Make sure the new activities align with what your company does.
- Not Updating MOA: Forgetting to amend the MOA to include the new activities can cause legal issues with the DED.
- Ignoring Free Zone Rules: If your business is in a free zone, not following the specific rules and requirements of the free zone authority can create problems.
- Misreading DED Guidelines: Misunderstanding or overlooking the DED’s guidelines on allowable activities can lead to errors in your application.
- Skipping Approvals and NOCs: Not getting the necessary approvals or NOCs from relevant authorities, like the municipality or sector-specific regulators, can stop your application.
- Forgetting Fee Payments: Missing fee payments or misunderstanding the fee structure can delay adding new activities to your license.
- Ignoring Licensing Conditions: Not meeting specific conditions related to the new activities, such as space requirements or staff qualifications, can lead to non-approval.
- Lack of Market Research: Not doing enough market research to understand the demand and regulatory needs for the new activities can cause problems after approval.
Contact Company Setup Consultants To Start Right Away
CSC can help you more than you think—we’re not just your average business consultants. We’ve worked for years in multiple zones, as well as mainland Dubai.
Our team has an idea of the latest fees and legal processes. We know how hard delays, missing documents or approvals can hit.
So, if you don’t want to look around too much and still want a smooth start, you can feel free to give us a knock.
To contact us, you can call +971 582595164 or +971 45187213, or email us at info@companysetup.ae.
