Want to grow your business within the UAE laws? The most significant thing about a trade license is adding activities to it in order to expand your business without any fines or limitations. You may be eager to launch new services or venture into a new business or remain perfectly compliant with the UAE regulations; renewing your trade license is one of the essential steps.
In this guide, we’ll show you how you can add activities to your trade license step by step, with the documents needed, fees, time limits, and the mistakes that usually should be avoided.
What is a Trade License?
A trade license is a government-issued document, which is a license of a company located in the mainland of the UAE, e.g., the Department of Economic Development (DED), or the authorities of a free zone, e.g., the corresponding free zone. It is your company and the nature of activities that your company is legally permitted to operate.
Trade licenses are categorized into:
- Commercial license: For trading businesses
- Professional license: For service-oriented businesses
- Industrial license: Use in the manufacturing or industrial activity.
The addition and updating of activities also make sure that your license represents your business operations correctly.
Importance of Updating Business Activities
It is not a mere formality to update your trade license:
- Legal compliance: Do not incur fines and penalties from authorities.
- Business growth: You are allowed to legally enlarge your services.
- Banking & contracts: Single trade license operations assist in obtaining bank accounts, loans, and contracts.
Activities to Add in Trade License
1. Activities for Commercial License
In case your business is concerned with trading, purchasing, and selling goods, you can include activities such as:
- General trading
- Import/export of goods
- Retail trading
- Wholesale trading
- Specific product trading (e.g., electronics, food, furniture, clothing)
2. Activities for Professional License
Service-based businesses are legally allowed to conduct their operations through professional licenses. You can add activities like:
- Consulting services (business, IT, management)
- Accounting and auditing services
- Marketing, advertising, or PR services
- Legal, medical, or engineering services
- Training or educational services
3. Activities for Industrial License
Additional activities that can be added in case your business is a manufacturing-based one are:
- Food production
- Furniture manufacturing
- Printing and packaging
- Industrial machinery production
Read Also: What Is NOC Letter in UAE? Meaning, Types & How to Get
Steps to Add Activities in Trade License
Inclusion of activities in your trade license can be considered complex; however, with an organized process, it is easy.
Step 1 – Identify the Activity You Want to Add
Before initiating the process, find out what activity you wish to add and make sure that it corresponds to:
- Your current business category
- Legal allowances for your license type
- Approval requirements of your jurisdiction (DED or free zone)
Step 2 – Prepare Required Documents
It will be easier to have all the documents prepared. Typically, you need:
- Copy of your existing trade license
- Duplicate of the Emirates ID and passport of the owner(s)
- Amendments of the Memorandum of Association (MOA), should they exist.
- Any No Objection Certificate (NOC) should be requested by the authorities.
Tip: There are free zones in which you can table documents online via their portals.
Step 3 – Visit the Relevant Authority or Portal
The difference between you and your business is:
- DED (Mainland companies): Go to the DED service center or use the online DED eServices.
- Free zone companies: Approach the free zone authority or go through their portal.
It is important to make sure you choose the right category of activity in order to avoid rejections or delays.
Step 4 – Submit Application and Pay Fees
Once documents are ready:
- Apply either online or at the authority.
- Pay the applicable fees.
Typical fees may include:
- Government processing fees: AED 500–1,000 (approx.)
- Activity addition fees: AED 200–500 per activity
- MOA amendment fee: AED 1,000–2,000
Step 5 – Receive Updated Trade License
After submitting your application and paying fees:
- You will receive a confirmation receipt.
- After this, you shall receive your new trade license with the new activities added.
Time Taken to Add Activities
Adding activities is time-consuming, depending on the authority and the maturity of your documents:
- DED (Mainland companies): Usually 2–7 business days
- Free zone authorities: Typically 3–10 business days
- Factors affecting time: The absence of documents, the type of activity, or the MOA modification.
Delete an Activity in Trade License
In some cases, the businesses should do away with an activity that is no longer pertinent. The process resembles the introduction of activities:
- Identify the activity to delete.
- Make documentation (existing trade license, copies of IDs, amendment of MOA, where necessary).
- File a form of deletion to DED or your free zone authority.
- Pay any applicable fees.
- Get your new trade license with the change.
Common Mistakes to Avoid When Adding Activities
1. Submitting Incomplete or Wrong Documents
One of the most common problems is the lack of documents or the wrong ones. Always make sure that you have:
- Your current trade license copy
- ID and passport copies of owners of individuals owning an Emirates ID.
- MOA amendments
- Any No Objection Certificates (NOC)
2. Choosing the Wrong Activity Category
The most common mistake is to add an activity to the wrong category. Ensure your activity:
- Select your type of license ( Commercial, Professional, or Industrial)
- Uses the official activity code of DED (or your free zone authority), which is correct.
3. Forgetting to Update the MOA
Certain new activities have necessitated an update to the Memorandum of Association (MOA). Failure to follow this may lead to:
- Rejection of your application
- Legal complications later
Action Step: E-Verify whether the activity you have added must be amended to your authority or consultant by the MOA.
4. Not Paying the Full Fees on Time
The process can be slowed down by failure to pay the fees in full or on time. Be sure to:
- Pay processing fees to the government.
- Pay activity addition fees
- Cover MOA amendment fees if required
FAQs About Adding Activities in Trade License
Q1: Is it possible to add several activities simultaneously?
Yes! It is possible to make several additions to an activity within one application. Remember to add that fees can be charged on every activity, and therefore, you have to check the fee structure before proceeding with it.
Q2: What is the time required to renew the license?
The update process normally takes 2-7 business days based on the authority and the status of the documents. Online submission could advance the process.
Q3: Is it mandatory to update the MOA?
Yes, there is a need to review the Memorandum of Association (MOA) in case the new activity touches on the legal scope of your company. This step might not be needed in case the activity does not affect the MOA.
Q4: Can I add activities online?
Most of the authorities, such as DED and the UAE free zones, provide the option of applying online via their official websites, which facilitates the process and makes it both quicker and easier.
Q5: What happens if I operate an activity not listed on my license?
Running an activity that is not licensed under your license is unlawful and may result in:
- Fines or penalties
- License suspension or cancellation
- Legal complications for your business
Read Also: How to Report Cyber Crime in UAE (Step-by-Step Guide)
Final Words
The reason why it is important to update your trade license and add the right activities is to be able to comply with the law, expand your business, and operate without any issues. This guide will provide a step-by-step process that will guarantee your application is quick, easy, and in full compliance with the UAE regulations.
There is no need to risk fines and even lost business opportunities. Renew your trade license now and realize the great potential of your business in the UAE!
