How to Add New Activity in Trade License in UAE? | Flyingcolour
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How to Add New Activity in Trade License in UAE?


Add New Activity in Trade License in UAE

Setting up a business in the UAE is straightforward and hassle-free. Anyone, even from outside the UAE, can open a business here. However, you will require a Trade license to run your business legally in this country. You have to pre-select all the services that your business will offer while applying for the trade license. 

But sometimes, when the business starts growing and expanding, you might have to add additional new activities to the list. This write-up will help you understand all the formalities related to Adding New Activities to the Trade license and what might happen if you do not do the UAE Business License Modification.

Add New Activity in Trade License in UAE

Procedure to Add Activity in Trade License

You can follow the below procedure for the Trade License Activity Amendment.


1. Initial DED approval 

To add extra or new activities to your trade license, you have to apply to the DED (Department of Economic Development). They will give the initial approval for making the necessary changes to the business license. 


2. Applying for the changes in the trade license

After the initial approval, you must complete and submit the license amendment form, also known as the BR1 form. The document should include the signatures of all shareholders or directors if there are any.


3. Fill in the NOC

A No Objection Certificate is a legal form that notifies the parties that the issuer does not object to the holder carrying out a particular business activity. Thus, the holder can add that activity to the trade license.


4. Agreement formalities

You have to complete an addendum and submit it. You can acquire this agreement from a legal translator for the LLC agreement. The Notary public should attest this to the addendum while submitting the trade license at the DED. It means you have to acquire a Court Agreement with the Notary. 


5. Submitting all the Necessary documents

Along with the above agreements and forms, you also have to submit the below documents for the update.

  1. Original registration and business license certificate
  2. Copy of the lease contract of the company office space
  3. Board resolution of the parent company in adding new activities to the trade license
  4. A NOC or Non-objection Certificate
  5. MoA or Memorandum of Association amendment with the necessary changes
  6. Business registration and license application
  7. Initial company name approval certificate from the Registry office in the UAE
  8. DED (Department of Economic Development)
  9. LLC and Court agreements attested amendment


6. Getting a new Trade License

Once DED approves the procedure of adding the activities to the trade license, you will get a notification through your email to submit the required payments for the new business license and finalize it.

Add New Activity in Trade License in UAE

What are the Requirements for Adding New Activity to the Trade License?

You can apply for an amendment of the trade license when you want to renew your business or add activities to it. You can make any of the following changes to the business license:


1. Announcement in the local newspaper both in Arabic and English

It is applicable if you are 

  • Converting your business from commercial to industrial or vice versa
  • Changing the legal form of the company
  • Decreasing the capital of the company
  • Amending the company owners
  • Changing the business name


2. Attesting the Notary Public Contract Annex

It is applicable if you are

  • Changing the legal form of the company
  • Changing the capital
  • Modifying the stakeholder’s shares
  • Assignment and sale
  • Changing the manager name in the license


3. Economic Certificate of Registration Ministry 

It is applicable if you are

  • Changing the foreign business’s or branch’s manager name under the trade license
  • Changing the foreign company’s or a brunch’s name
  • Changing a foreign company’s or a branch’s service agents
  • Changing the nationality of the foreign investor in the trade license
  • Changing the branch’s or a foreign company’s legal form
  1. Approvals from some specific entities
  2. Current trade license
  3. Complete application form
  4. Power of Attorney


Why is it Necessary to Amend the Trade License?

A trade license represents a legal document offering information on particular activities of a business operating in the UAE. It also creates a regulatory framework for a company and helps to carry out every activity with legitimacy. It is necessary to amend the trade license because of the following reasons.


1. UAE regulation compliance

Operating without appropriate authorization to carry out the additional activities might result in legal repercussions, including potential suspension or fine for the business.

2. Accessing new opportunities

Some business activities need extra permits from some particular government authorities. Flyingcolour can assist you in identifying those and making sure you have the required legal framework for pursuing new opportunities.

3. Credibility and Transparency

An up-to-date trade license represents your complete business offerings, thus improving the transparency of your company. It will also assist in establishing trust with potential partners and clients. 


Common Mistakes to Avoid During UAE Business License Modification


Avoid the following mistakes while adding new activity in the Trade License UAE.

➦Not knowing about the Activity Codes.

Before adding any new activity to the trade license, you should know the applicable activity codes. Implementing an incorrect code in your application might delay the software’s process. You can identify the codes from the official website of Dubai Municipality.

➦Not disclosing all the Statistics.

When adding a new activity to the trade license, make sure to disclose all the information. Incomplete information might lead to rejection. 

➦Not updating the exchange license.

If you are adding new activities to the trade license, ensure that you update the exchange license. Failure at this stage might result in the revocation of the exchange license or fines. 


How Flyingcolour can help you?

This complicated procedure of adding and updating Trade License activities might cost you valuable time. Thus, the best way to add activities to your trade license is by partnering with a professional like Flyingcolour Business setup services. The professionals will manage all the aspects and guide you through the documents necessary for the application procedure. They will handle all the formalities of the DED and UAE government authorities related to adding or updating any activity in the trade license.

To learn more about Add New Activity in Trade License in UAE, book a free consultation with one of the Flyingcolour team advisors, simply call +971 50 5585305 or send WhatsApp messages to +971 4 4542366. you can also drop an email to info (at) flyingcolour (dot) com.

Please note that this article was published on  08/05/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.


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