As your business grows in the UAE, you may want to expand into new markets or offer additional services. To do this legally, you must add new activities to your trade licence. This process ensures your business remains compliant while giving you the flexibility to evolve with demand.
This detailed guide explains how to update your licence, step by step, and outlines key considerations, costs, and documentation requirements.
Why You Might Need to Add New Activities
Every company in the UAE operates under a trade licence, which outlines specific business activities you’re legally allowed to perform. If you decide to diversify your services or products, you need to amend your trade licence accordingly.
When Do Businesses Add New Activities?
- Introducing a new service or product
- Expanding into a related industry
- Entering new markets that require different approvals
- Changing the focus of your operations
Failing to include the correct activity on your licence can lead to fines, delays in renewals, or even suspension of your business operations.
Types of Business Activities in the UAE
Before you proceed, it’s helpful to understand the categories under which activities are classified. Each business activity in the UAE falls into one of the following categories:
Commercial Activities
Includes trading, retail, import/export, general trading, and distribution.
Professional Activities
Covers consultancy, marketing services, IT, legal advisory, and education services.
Industrial Activities
Manufacturing, packaging, assembly, and industrial production activities fall under this category.
Each activity is assigned a specific code by the licensing authority (like the Department of Economic Development – DED) or the respective Free Zone Authority.
How to Add Activities to Your Trade Licence in the UAE
To add activities, start by selecting the new business activity and checking if it aligns with your current licence. Then, apply through the relevant authority—DED or Free Zone—submit required documents, update your MOA if needed, pay the fees, and receive your updated trade licence.
Step 1: Identify the New Activity
You must first decide what additional activity or activities you want to add. This should be based on your business plan, market demand, or client requests.
Use the DED activity list or Free Zone database to check the exact name and code of the activity.
Step 2: Check Activity Compatibility
Ensure the new activity is compatible with your current licence type. For example:
- A consultancy licence cannot add retail trading unless restructured.
- A service company in a free zone might not be allowed to add an industrial activity.
You may need to change your licence type or apply for a dual licence if the activity falls under a different category.
Step 3: Get Initial Approval
Submit a request to the relevant authority to approve the addition of your desired activity. This involves:
- Filling out the amendment form
- Submitting your current trade licence
- Providing a brief explanation or justification for the added activity
The authority will assess whether your company is eligible to carry out the additional activity.
Step 4: Update Legal Documents
If you’re operating in the mainland, you may be required to amend your Memorandum of Association (MOA).
This means:
- Adding the new activity in your MOA
- Signing an MOA addendum
- Getting the document notarized by a public notary
In some Free Zones, this step is optional or managed internally.
Step 5: Pay the Required Fees
Licensing authorities charge a fee per new activity. The cost can vary based on:
- The number of activities
- The category of each activity
- Whether additional approvals are required
On average, adding a single activity may cost between AED 1,000 to AED 5,000.
Step 6: Receive the Updated Trade Licence
After payment and document approval, you will receive a new copy of your trade licence showing the updated list of permitted activities.
Documents Required to Add Activities to a Trade Licence
The required documents may vary slightly by authority, but typically include:
- Copy of the current trade licence
- Copy of shareholders’ passports or Emirates IDs
- Tenancy contract (Ejari) for mainland companies
- Board resolution (in some Free Zones)
- Updated MOA, if applicable
- NOC from sponsor or local partner (if required)
Where to Apply Based on Your Business Location
If your business is set up in the mainland, you’ll apply through the Department of Economic Development (DED) in your emirate. For free zone companies, submit your request directly to the relevant Free Zone Authority, as each zone has its own process and documentation requirements.
Mainland Businesses
Apply through the Department of Economic Development (DED) in the emirate where your business is registered.
Free Zone Companies
Submit your request to the Free Zone Authority (e.g., DMCC, IFZA, RAKEZ, SHAMS). Each free zone has its own rules and portal for managing such requests.
Things to Keep in Mind
Activity Restrictions
Some activities require external approvals from ministries or regulatory bodies. For example:
- Healthcare services require approval from the Ministry of Health
- Education or training requires approval from KHDA (Dubai) or ADEK (Abu Dhabi)
- Financial services need approval from the Central Bank or DFSA
Office Space Requirements
Adding certain activities (especially commercial or industrial) may require larger or differently zoned office space.
Always confirm with your authority whether your current office setup complies with the new activity’s requirements.
Validity of the Trade Licence
Your updated trade licence retains its original expiry date. Adding an activity doesn’t extend the validity period, but it can affect the renewal process if additional compliance checks are introduced.
Benefits of Adding Activities to Your UAE Trade Licence
- Increased revenue streams by tapping into new markets
- More flexibility in delivering services or goods
- Stronger brand positioning as a one-stop provider
- Improved client trust by operating within legal bounds
- Ability to scale operations across different industries
Conclusion
Knowing how to add activities to your trade licence in the UAE is a smart business move for entrepreneurs looking to expand, diversify, and grow. With the right documentation, clear guidance, and professional support, the process is straightforward and rewarding.
To make sure the process is completed without delays, work with experts in Business Setup in Dubai, UAE who can guide you through documentation, legal approvals, and compliance so you can focus on growing your business.
Frequently Asked Questions (FAQs)
How long does it take to add an activity to my trade licence in the UAE?
It usually takes 3 to 7 working days, depending on the business location, activity type, and authority involved.
Can I add any activity to my licence?
You can add most activities, but they must be compatible with your existing business type. Some may require external approvals.
Is there a limit to how many activities I can add?
There’s generally no strict limit, but the fees increase per added activity. Authorities may restrict unrelated activities from being added under the same licence.
Do I need a new office if I add a different activity?
Not always, but larger or regulated activities (like manufacturing or trading) may require additional space or a warehouse.
Can a free zone company add a mainland activity?
No. Free zone businesses are restricted to the Free Zone. To conduct activities in the mainland, you’ll need to set up a mainland branch or open a new licence.
