Anyone can set up a business in Dubai, UAE. You only need to fulfill some requirements to do so including getting a trade license. But what happens is that on some occasions, companies introduce new service which is not registered under their current license. Similarly, sometimes, companies look to replace their existing service with another one. So, they plan on adding or replacing activity in their trade license in Dubai, UAE.
There is good news for such companies as the Department of Economic Development (DED) Dubai has introduced a straightforward way to make all sorts of changes that the businesses want to make to their licenses. Read on to find out the process of adding, replacing, or doing any changes to the trade license.
How to Add Activities in Trade License?
Businessmen who wish to make changes to their trade license can easily do so by visiting the DMCC portal and applying there for it.
The list of documents that you must have for applying for adding or replacing activity in your trade license in Dubai includes:
- License and registration application
- Copy of the office lease agreement
- Documentation of the reserved trade name
- Parent companies’ Board resolution to change or replace the business activity (for branches of a foreign business not registered with the Ministry of Economy)
- Original license
- Permission from the DED (for foreign business branches registered with the Ministry)
- Original registration certificate
You might need some other documents but in general, these documents will do the job for you.
There are certain steps to be followed in order to apply for a change of activity. The steps are as follows:
Step 1. Initial Approval
The first step is to get initial approval from the Tas’heel Center or the DED (Department of Economic Development). You should have all the required documentation to obtain initial approval for making the changes to your trade license.
Step 2. Application Submission
The next step is to submit the application for license amendment. Get a BR1 form and obtain the signature of the Managing Director. Once done, submit the application at DED mentioning all names of your partners.
Step 3. Non Objection Certificate
Post that, you will need to write a Non-Objection Certificate (NOC) in order to add the business activity that you wish for.
Step 4. Agreement Formalities
Then, you need to write an addendum from a legal translator to LLC Agreement and get it attested by Notary Public at the Department of Economic Development, Dubai. You don’t require a Legal translator’s seal if the agreement is only in Arabic.
Step 5. Attend at Notary
All business partners of your company need to sign the Court Agreement at the Notary. A business partner, who is outside the country, can send a Power of Attorney (POA) to authorize other partners to represent them in court.
Step 6. Submit the Required Documents
Next up, Submit the attested addendum and needed documentation at any branch of DED, Dubai. The document that you would need at this step are as follows:
- Amendment to the Memorandum of Association (MOA) related to the change in your business activity
- Documents for initial approval that you must have already submitted to the relevant authorities
Step 7. Receive New Trade License
Finally, if everything has gone smoothly, you just have to pay the charges to the DED and obtain your new trade license with new activity.
Things to Remember for Adding/Changing Activity in Trade License in Dubai
here are the things you should know before you add, change, or withdraw your license:
Apply for a License Amendment
It’s the method of changing the business activities you previously established for your current trade license. When your license is renewed, you can undergo a license amendment. Along with changing your business operations, some of the following changes are also eligible for license amendment:
- Changing trade name
- Changing authorized capital
- Changing business location
- Removing or adding partner/s
- Changing local sponsors (for mainland businesses)
- Adding or changing management details
Choosing a Business Activity
You are not allowed to select a business venture that conflicts with your current trade license. Depending on their nature, activities are divided into categories accordingly. You must select a business activity that corresponds with your license in order to successfully update your previously selected activities with your authority. If not, you must submit an application for a new license.
Regulations for License Amendment Process
Each authority’s rules for the procedure of license amendment are unique. Each authority has different means of allowing this process for investors, even though they all allow adjustments to your licenses. Some only permit little changes, while others are lenient.
Some business operations demand outside approval or third-party approvals. Construction and architecture, health services, food services, and chemical manufacturing companies are just a few of the industries that must be scrutinized and regulated by the government due to their essential nature. It’s possible that some of your new endeavors will need authorization from additional regulatory bodies in addition to your authority.
Business Name Change, Trade Name Change, or Freezing Trade License in Dubai
Everything is possible with a trade license such as changing the name on a business license, changing the trade name, or freezing your trade license.
For these processes, you need the following list of documents:
- Official documents related to the devolution of License or shares and replacement of heirs
- Addendum to MOA (Memorandum of Association) and other legal documents associated with the type of amendments
- Copy of Emirates national ID card (family book of UAE nationals) and passport
- The company agent agreement or local service agent agreement, in case you want to replace the current local service agent.
- No objection letter from the current sponsor of the applicant (only for non-GCC nationals)
- No objection letter from the parent firm for making changes in the trade license
- Authenticated documents are needed according to the legal form like adding a business operation for a branch of a foreign firm, etc.
- Copy of the residence visa/permit details (only for non-GCC nationals)
You may also need other documents for these processes.
Steps to Follow:
To do so, follow the following steps:
- Complete the license and registration forms.
- If necessary, gather any specific business activity approvals. You need their consent if any other government is regulating your business activities. In that situation, you can get advice through the Dubai Economic Department on receiving authorization from other governments.
- Provide the needed paperwork.
- After completing all of these steps, you must submit payment at these steps, using a transaction number or voucher as a point of reference.
- Finally, after all the payments have been made through various payment options, your new license will be approved.
Allowed Amendments in Trade License in Dubai, UAE
The following are different types of amendments to your legal trade license. Ahead are the different kinds of Amendments that are allowed under a business license in Dubai, UAE.
- Add a business activity
- Remove a business activity from the register
- Add a business activity to the register
- Delete a business activity
- Change a local service agent’s nationality
- Add a director
- Change a local service agent
- Delete a local service agent
- Change a director’s nationality
- Add a local service agent
- Change a director
- Change a partner
- Change an owner or a partner’s name
- Withdraw a partner
- Change a director’s name
- Add a partner
- Change a local service agent’s name
- Devolution of a share
- Change an owner/a partner’s nationality
- Devolution of a license
- Delete a director
- Replacement of heirs in company share
- Replacement of heirs in trade license
Other Types of Amendments
- Change a legal form
- Assignment of license
- Change a company’s nationality
- Relocation of a business location
- Change a trading name
- Increase the capital
- Change a company name
- Reduce the capital
- Mortgage of shares
- Merger of license
- Mortgage of a license
- Freeze a business license
FAQs – Frequently Asked Questions
How can I change my business activity in Dubai?
You need the following documents to change your business activity in Dubai:
- Proof of a trade name reservation.
- Application for new business activity registration and license.
- Original registration certificate.
- The original trading license in Dubai.
- The Ministry of Economy’s blessing.
- Board of Directors of Company decision.
What are the activities under the general trading license in Dubai?
The investor can engage in storage, selling, import/export, distribution, and other activities with the help of a Dubai general trading license. A general trading license can be used for a variety of commercial activities, including selling clothing, electronics, furniture, accessories, and other commodities at wholesale and retail prices.
How do I update my trade license?
You can update your trade license by doing the following steps:
- Look for the business application
- Provide company information
- Select a delivery method
- Receive your trade license
How can I reduce my trade license fee in Dubai?
You can reduce your trade license fee in Dubai in the following ways:
- Rent a smaller office workspace
- Don’t choose a foreign name for your company
- Limit your business partners for LLC
- Avoid any other non-Arabic or Eastern European name
- Decrease the involvement of business partners
- Decrease the number of business partners
How can I update my trade license in Dubai Municipality?
You can update your trade license in Dubai Municipality by completing the following steps:
- Visit the website www.rasid.ae and log in.
- Select the company registration tab and the user will be directed to a new page.
- Tick the security column at the bottom after completing the required fields.
- Click on register.
How Riz and Mona Can Assist You
In the UAE, obtaining a license amendment and other license-related services can occasionally be a burdensome and arduous process. Riz and Mona offer their assistance in meeting your demands for operating a business in the UAE. Through its years of experience helping investors obtain their trade licenses in Dubai and other corporate services, we help you in fulfilling your trade license requirements.
We are a group of experienced professionals with the knowledge and connections to help your expanding business in the UAE. Contact us right away to learn more about our trade or business license services.