Expanding your business in Dubai often involves adding new activities to your existing trade license. This allows your company to diversify its offerings and tap into new markets while remaining compliant with local regulations. The process of adding activities is well-defined, but it's crucial to follow the correct steps and provide the necessary documentation to ensure a smooth and efficient amendment.

Understanding Trade Licenses and Activities in Dubai

Before delving into the process, it's essential to understand the basics of trade licenses and business activities in Dubai. A trade license is an official document that permits a company to conduct specific business activities within the emirate. The Department of Economy and Tourism (DET), formerly known as the Department of Economic Development (DED), is the primary authority responsible for issuing and regulating trade licenses in Dubai.   

Business activities in Dubai are categorized into various sectors, including:

• Commercial: Buying, selling, and trading of goods. Examples include general trading, retail, and e-commerce.   
• Professional: Providing services, consultancy, or skilled expertise. Examples include IT services, marketing agencies, and legal consultancy.   
• Industrial: Manufacturing, processing, and production of goods. Examples include food processing, metal fabrication, and textile manufacturing.   
• Tourism: Services related to travel, hospitality, and entertainment. Examples include travel agencies, hotels, and event management.   

When applying for a trade license, businesses must specify the activities they intend to undertake. Adding new activities requires an amendment to the existing license.   

Step-by-Step Process to Add Activities

The process of adding activities to a trade license in Dubai generally involves the following steps:

1. Obtain Initial Approval from the DET:

   • The first step is to apply to the DET for initial approval to add the new business activities. This confirms that the proposed activities comply with the UAE's regulations.   
   • You can apply online through the DET portal or visit one of their offices.

2. Submit the Amendment Application:

   • Once the initial approval is granted, you need to fill out and submit the BR1 form, which is the application for amending the trade license.
   • Ensure all required signatures from the company's directors or shareholders are included.

3. Secure Necessary Approvals (if required):

   • Depending on the nature of the new activities, you might need to obtain approvals from other relevant government authorities or municipalities.
   • For instance, food-related activities may require approval from the Dubai Municipality's Food Safety Department.   

4. Complete Legal Formalities (for Limited Liability Companies - LLCs):

   • If your company is an LLC, you will need to complete additional legal formalities:
     • An addendum to the LLC Agreement reflecting the new activities must be prepared and legally translated.   
     • This addendum must then be attested by a Notary Public at the DET.   
     • In some cases, a Court Agreement might also be required to be completed at the Notary.   

5. Submit Required Documents:

   • A set of documents needs to be submitted to the DET to finalize the amendment. These typically include:
     • Original trade license and registration certificate.
     • Completed BR1 form (amendment application).
     • Copy of the company's office space lease agreement.   
     • Initial approval certificate from the DET.
     • No Objection Certificate (NOC) from relevant authorities (if applicable).   
     • Attested addendum to the LLC Agreement and Court Agreement (for LLCs).   
     • Updated Memorandum of Association (MoA) reflecting the new activities.   
     • Board resolution from the parent company (if applicable).   
     • Passport and visa copies of shareholders/partners.   
     • Other documents as required by the DET based on the specific activities.
        

6. Pay the Fees:

   • Once the DET reviews and approves your application and documents, you will receive a notification to pay the required fees.   
   • The fees vary depending on the jurisdiction (mainland or free zone) and the type of activity being added.   

7. Collect Your Updated Trade License:

   • After the payment is processed, your trade license will be updated to include the newly added business activities.   
   • You can usually collect the updated license online or in person from the DET.

Important Considerations

• Alignment of Activities: The new activities you wish to add must align with your company's existing business structure and the type of trade license you hold.   
• Regulatory Compliance: Ensure that the new activities comply with all relevant federal and local laws and regulations.   
• Third-Party Approvals: Be prepared to obtain approvals from external government bodies if the new activities fall under their jurisdiction.
• Cost Implications: Adding activities may incur additional fees, which can vary based on the number and nature of the activities. Amendments made during the license validity period might require paying the full license fee again, while amendments during renewal might have a specific amendment charge in addition to the renewal fee.   
• Timeframe: The processing time for adding activities can vary depending on the complexity of the activities and the approvals required. Mainland applications through the DET typically take a few working days, but free zone applications might take longer.
• Professional Assistance: Consider seeking assistance from business setup consultants or legal professionals to navigate the process, especially if you are unfamiliar with the procedures or if the activities are complex.

Conclusion

Adding activities to your trade license Dubai is a strategic move for business growth and diversification. By understanding the process, preparing the necessary documents, and adhering to the regulations set by the DET and other relevant authorities, you can successfully expand your business operations and capitalize on new opportunities in the dynamic Dubai market. Remember to stay informed about the latest regulations and utilize the available online resources or professional guidance to ensure a seamless amendment process.