Business setup in the United Arab Emirates is a simple and straightforward process. Anyone can open a business. However, all companies require a trade license to operate legally in the UAE.
Applying for the correct trade license means you need to pre-select your company’s services. However, as the business grows, you might want to add a new service. This article shows you how, covering the following:
- How to add activities to a UAE trade license?
- Things to remember when amending your UAE trade license activities
- How to change the address on a trade license in Dubai
- What is the license activity code on a trade license?
- What are the activities allowed in a general trading license?
- What happens if I don’t renew my trade license?
- Working with Trade License Zone
How to add activities to a UAE trade license?
To add activities to a trade license, you can follow these seven steps to apply for changes to your business activities.
Step 1: Partner with Trade License Zone
The first step in the process of adding activities to a trade license is to partner with Trade License Zone. Our professional team will manage all aspects of your application process and guide you through all the documentation required by the various UAE government authorities and Dubai Economic Department agencies related to your business activities.
Step 2: Initial approval from DED to add activities to a trade license
To add activities to a trade license, you must apply to the Department of Economic Development (DED). This government agency will grant you initial approval to make changes to your business license, allowing you to proceed to the next step.
Step 3: Apply for trade license changes
The next step is to complete and submit the business license amendment application form. This document is called the BR1 form. Complete it, including signatures from all directors or shareholders, if applicable.
Step 4: Complete a No Objection Certificate
A No Objection Certificate (NOC) is a legal document in the UAE that informs parties that the issuer has no objection to the holder conducting a specific business activity so that the holder can add activities to the trade license.
Step 5: Agreement formalities to add activities to a trade license
For this step, you must complete an addendum from a legal translator for an LLC Agreement. The Notary Public must then attest to this addendum at the DED. This also involves your company completing a Court Agreement at the Notary. These legal forms are essential for this step to be successfully completed.
Step 6: Submit these required documents to add activities to a trade license:
- 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 in trade license (if applicable to your company)
- Permission from the Department of Economic Development (DED)
- 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 7: Get a new trade license
Once the DED has approved the process to add activities to the trade license, you will receive email notifications to submit payment for your new business license and get it finalised.
Things to remember when amending your UAE trade license activities
It is important to remember the following before you add activities to the trade license:
Applying for a trade license amendment
You can apply for a trade license amendment to add activities to a trade license, and you can also complete this process when your business license needs to be renewed. You can make the following changes to your business license:
- Change the trade name
- Change the authorised capital
- Change the business address
- Remove or add partners
- Change local service agents or local sponsors (applicable to Mainland Companies)
- Add or change the company’s management details.
Add activities to a trade license
You can only add activities to a trade license if they align with your business structure and license. Otherwise, you will need to apply for a new business license.
Regulations for trade license amendments
Each licensing authority and business zone’s procedures for trade license changes are different. Please check with your jurisdiction for updated guidelines.
Third-party approvals
Suppose your business requires third-party approvals from government authorities, municipalities, or trade institutions. In that case, you will need to apply for and submit those approvals for your business license amendments.
How to change the address on a trade license in Dubai
You can change the business location address on the trade license by completing an addendum to the company’s Memorandum of Association (MoA) documents. The Notary Public must then attest to this addendum at the DED. When submitting the documents and application to amend your business license, you must include this completed form for the change to be approved on your trade license.
What is the license activity code on a trade license?
The license activity code on a trade license is the unique identifying code specifically assigned to a particular business activity. These activity codes appear on the business license and provide a description of the specific business activity approvals permitted within that particular activity code.
What are the activities allowed in a general trading license?
The activities for a general trading license are as follows:
- The business can engage in storage, sales, import-export, distribution and other related activities.
- Other commercial activities include wholesale and retail clothing and fashion, electronics, furniture, accessories, and other commodities.
What happens if I don’t renew my trade license?
According to the DED, several penalties apply to businesses operating with an expired trade license. Running your business without a trade license may result in an AED 5,000 fine and an additional AED 250 if the trade license is not renewed. Furthermore, operating a business in an unregistered zone can also carry an AED 1,000 fine.
However, other penalties may arise from not renewing your company’s trade license. Your company may be blacklisted from operating in the UAE, which could mean the cancellation of your employees’ visas, any sponsorships, and your residence visa, too.
Working with Trade License Zone
When you partner with an expert such as Trade License Zone, business setup in the UAE is a streamlined process. Partnering with Trade License Zone will save you from the frustration of unnecessary delays or rejections and simplify the entire process.
All companies in the UAE must hold a valid trading license to operate legally. Trade License Zone’s professional team will manage all aspects of your trade license application, company registration, and setup process to guide you through the documentation required by the various UAE government authorities so you can begin trading.
The specialists at Trade License Zone can get started as soon as you provide us with some basic documentation. After that, just sit back and let our team take care of the rest. We’ll manage your trade license application, communicate with all relevant local departments and authorities, and report when you’re ready to launch your new company. It really is that simple.