Feb 24 , 2025
How to Add an Activity to Your Trade License in Dubai?
A UAE trade license is a requirement for all businesses in Dubai. It gives them the legal right to conduct commercial activities in the country. It ensures compliance with local regulations and builds credibility, enhancing business opportunities within the country. A valid trade license is essential for businesses to lawfully operate, secure governmental contracts, and access various private sector benefits.
When entrepreneurs kick-start their businesses, they may want to expand their operations or activities. The process involved adding activities to the existing trade license they had acquired. By adding new activities, companies can broaden their product or service offerings, explore new markets, and increase revenue streams. This is a strategic move for companies that seek stability, enabling them to adapt to the demands of the changing market while maximizing their profitability in Dubai’s competitive environment.
In this blog, we are going to go through the process of adding an activity to a trade license, legal compliances to keep in mind, and how Kiltons Business Setup Services will assist you through the process. Let’s get into it.
Types of Trade License
There are several types of trade licenses offered in Dubai, each designed to cater to different business activities. The main types of licenses are as follows:
- Commercial license: This license is for businesses involved in trading activities such as buying, selling, and exporting goods. The license is ideal for companies engaged in general or specialized trading activities, such as retail shops, wholesale businesses, and e-commerce platforms.
- Industrial license: The license issued to businesses involved in manufacturing or industrial activities. This covers activities such as manufacturing, packaging, and processing.
- Professional license: The license is ideal for individuals or companies offering professional services, such as consultancy, educational services, legal practices, medical services, and artisanship.
- Tourism license: This license is required for companies and establishments that operate in the travel and tourism sector of Dubai.
Step-by-Step Guide to Adding Activities to Your Trade License
In this section, we can closely check the stepo by step guide to add an activity to your trade license in Dubai:
Step 1: Obtain initial approval from the DET to add activities to a trade license:
The Department of Economy and Tourism (DET) approves additional activities that you intend to add to the trade license. This regulatory body will assist you in granting you initial approval to make changes to your business license.
Step 2: Apply modifications to your trade license:
Next, the business license amendment application form must be completed and submitted. This document is referred to as the BR1 form. If applicable, include the signatures of all directors or shareholders in the document.
Step 3: Complete No Objection Certificate (NOC):
An NOC is a legal document that notifies parties that the issuer has no objection to the holder conducting a specific business activity. This allows the holder to include the activity in the trade license.
Step 4: Formalities of agreeing to include activities in a trade license:
You are required to complete an addendum from a legal translator for an LLC agreement to proceed with this step. This must be subsequently attested to by the Notary Public at the DET. It is also necessary for your organization to execute a court agreement at the notary. This step cannot be accomplished without the completion of these legal forms.
Step 5: Documents required to add activity to trade license in Dubai
- Original business license and registration certificate
- Completed business license and registration application
- Copy of your company’s office space lease contract
- Initial approval certificate of your company name from the UAE’s Registry Office
- The Parent company board resolution to add activities to trade license (if applicable to your company)
- Permission from the Department of Economy and Tourism (DET)
- A Non-Objection certificate (NOC)
- Attested amendment to LLC Agreement and Court Agreement
- Amendment to the Memorandum of Association (MoA) with changes to add activities to your trade license
Step 6: Obtain a new trade license:
Once the DET has accepted the process of adding activities to the trade license, you will receive email reminders to submit money and have your new business license finalized.
Legal compliances to keep in mind
Before adding activities to the trade license, it is essential to keep the following things in mind:
- Requesting a modification to a trade license:
It is possible to apply for an amendment to your trade license to include additional activities, and this process can be completed during the renewal of your business license. Changes can be made to your business license as follows:
- Alter the trade name
- Modify the authorized capital
- Update the business address
- Adjust partners as needed
- Modify local service agents or local sponsors
- Update or modify the management information of the company
- Include activities in a trade license
- Activities can only be added to a trade license if they are consistent with the business structure and the terms of the license. If not, you will have to apply for a new business license.
- The procedures for trade licenses vary among each licensing authority and free zones. Kindly check with your jurisdiction for the latest guidelines.
- Your business may necessitate obtaining approval from government authorities, municipalities, or trade institutions. You will need to apply for and submit the necessary approvals for business license amendments.
- To change the business location, complete an addendum to the company’s Memorandum of Association (MoA) documents. The Notary Public attests to the document before submitting it to the DET. To ensure approval, submit the completed form along with the necessary documents.
- The license activity code on a trade license serves as an identifier allocated to business activity. The activity codes listed on the business license offer a detailed description of the specific business activity approvals allowed under each respective code.
- Activities associated with general trading licenses include:
- Storage, sales, import-export, distribution.
- Wholesale and retail apparel and fashion, electronics, furniture, accessories, and other commodities comprise additional commercial activities.
How can Kiltons Help?
At Kiltons Business Setup Services, their expert team offers customized solutions according to your business requirements. We suggest the most suitable activities you can include in your trade license. The team takes the guesswork out of legal requirements by consulting with you and advising what sort of business activities would be advisable as per your business model and type. This involves our preparation and review of all relevant documents, which could range from trade license copies and owner/shareholder documents to any other additional documentation. In addition to putting in activities, Kiltons also assists with any future changes that the organization may need to undergo.
With Kiltons, you can grow and diversify your business to ensure that you are empowered by experts throughout the process.
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