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Adding Activity In Trade License Dubai Guide

Adding Activity In Trade License Dubai Guide

Adding an activity to your trade license in Dubai can open up new business opportunities and expand your operations. However, it is essential to understand the process and requirements involved in making changes to your license. This comprehensive guide will walk you through the process of adding an activity to your trade license in Dubai, along with other important information related to license amendments and renewals.

Adding Activity in Trade License Dubai Process:

Adding a new activity to your trade license in Dubai involves a series of steps and compliance with government regulations. The process typically includes the following:

  1. Research and Planning: Identify the new activity you want to add to your trade license and ensure it aligns with your business objectives.Check here for business activities trading types.
  2. Documentation: Prepare the necessary documents, such as passport copies, visa copies, NOC (No Objection Certificate) from the sponsor (if applicable), and other supporting documents.
  3. Application Submission: Submit the application for adding the activity to the Department of Economic Development (DED) or the relevant free zone authority, depending on your business location.
  4. Review and Approval: The authorities will review your application and assess its compliance with regulations. This may involve a site inspection or additional documentation requests.
  5. Payment of Fees: Upon approval, you will be required to pay the prescribed fees for adding the activity to your trade license.
  6. Updating Trade License: Once the payment is made, the relevant authority will update your trade license to reflect the new activity.

Types of Changes that Can Be Made to a Trade License :

Apart from adding a new activity, there are several other changes that can be made to a trade license in Dubai. These changes include:

  1. Change of Name or Partners: If you wish to change the name of your business or add/remove partners from company , you need to follow a specific process and provide the necessary documents.
  2. Change of Activity: Adding or modifying the existing business activity requires compliance with relevant regulations and submission of supporting documents.
  3. Change of Address: If your business relocates, you must inform the authorities and update the registered address on your trade license.
  4. Change of Shares: Alterations in shareholding structure or ownership require proper documentation and compliance with applicable laws.
  5. Change of Legal Type: If you want to change the legal structure of your business, such as from a sole proprietorship to a limited liability company, you need to follow the legal process for such amendments.
  6. Change of Capital: Increasing or decreasing the authorized capital of your company may require approval from the authorities and updated documentation.
  7. Freeze License: In certain cases, you may want to freeze your license temporarily due to various reasons. This process involves submitting a request and fulfilling the requirements set by the licensing authority.

In short, The Ded (Department of Economic Development) offers various amendments for businesses, including adding or withdrawing a partner, changing the trade/company name, assigning licenses, modifying activities, canceling or adding new activities, changing the business site or appointing agents, altering the legal form or appointing a manager, addressing inheritance issues, increasing capital, and obtaining duplicate copies of documents. These amendments provide businesses with flexibility and the ability to adapt to changing circumstances.

License Renewal Grace Period and Impacts of Non-Renewal:

The license renewal grace period in Dubai varies depending on the jurisdiction and licensing authority. Typically, businesses are provided a grace period of 30 days from the license expiry date to renew their license without incurring penalties. However, it is crucial to verify the specific grace period applicable to your business.

  1. Penalties: Late renewal attracts penalties, which can vary depending on the jurisdiction and the duration of delay.
  2. Business Disruption: Operating with an expired license is illegal and can lead to disruptions in business activities, including fines, closure, and legal consequences.
  3. Visa Issues: An expired license can impact your employees’ visas and work permits, potentially resulting in immigration and labor law violations.
  4. Contractual Obligations: Renewal delays may affect your ability to fulfill contractual obligations with clients, suppliers, and other stakeholders. Read more about trade license renewal in dubai guide.

Cost of Adding Activity to a Trade License:

The cost of adding an activity to your trade license in Dubai depends on several factors, including the jurisdiction, the nature of the activity, and the type of license. The fees may include government charges, application processing fees, administrative fees, and other relevant expenses. It is advisable to contact the relevant licensing authority or consult a business setup service provider in dubai like us for accurate and up-to-date cost information.

Commercial Contracts Required for License Amendments:

Certain commercial contracts may be required when amending your trade license in Dubai. These contracts may include:

  1. Memorandum of Association (MOA): MOA is a legal document that outlines the company’s structure, activities, and other vital details. Any changes made to the trade license may require an amendment to the MOA.
  2. Partnership Agreements: If there are changes in the partnership structure or the addition/removal of partners, partnership agreements need to be revised or created accordingly.
  3. Lease Agreements: Change of address or relocation often necessitates revising the lease agreement or obtaining a new one for the new business premises.

At Legal House, we pride ourselves on being the best legal consultants and business setup service providers in Dubai. We have a team of experienced professionals who are well-versed in the intricacies of trade license amendments and can assist you in all the processes mentioned above.

Here’s how Legal House can help you:

  1. Expert Guidance: Our team of legal consultants has in-depth knowledge of the laws and regulations governing trade licenses in Dubai. We can provide you with expert guidance on the requirements and procedures involved in adding an activity to your trade license. Whether it’s researching the feasibility of the new activity or understanding the documentation needed, we can offer valuable insights and support throughout the process.
  2. Documentation Assistance: Trade license amendments often require extensive documentation. We understand that compiling the necessary paperwork can be time-consuming and complex. Our team can assist you in preparing and organizing all the required documents, ensuring that they meet the specific requirements of the licensing authorities.
  3. Application Submission: Submitting an accurate and complete application is crucial for a smooth process. Our experts will review your application to ensure it is error-free and meets all the necessary criteria. We will handle the submission process on your behalf, saving you time and effort.
  4. Liaison with Authorities: Dealing with government authorities can be a challenging task, especially if you are not familiar with the procedures. As your trusted legal consultants, we will act as your liaison with the relevant authorities, representing your interests and ensuring effective communication throughout the amendment process.
  5. Cost Management: Determining the costs involved in trade license amendments can be complex, as they vary depending on multiple factors. Our team will provide you with a clear breakdown of the expected costs, including government fees, processing fees, and any additional expenses. We will work with you to optimize your budget and minimize unnecessary expenses.
  6. Commercial Contracts: As part of our comprehensive service, we can assist you with the preparation or revision of commercial contracts that may be required for license amendments. Our experienced legal team will ensure that these contracts accurately reflect the changes made to your trade license and protect your business interests.
  7. Timely Renewals: License renewal is a critical aspect of maintaining compliance and continuity in your business operations. We can also help you with timely license renewals, ensuring that you meet the necessary deadlines and avoid any penalties or disruptions to your business.

Feel free to contact us at Legal House for all your trade license amendment and business setup needs. Our dedicated team is ready to assist you with professionalism and efficiency, providing tailored solutions to meet your specific requirements.


How much is the penalty for an expired business license renewal in Dubai?

The penalty for an expired business license in Dubai may vary depending on the specific circumstances and jurisdiction. It is advisable to consult with the relevant licensing authority to determine the exact penalties and consequences associated with an expired business license.

Is there a way to inquire about fines associated with my commercial license?

Yes, it is possible to check fines for a commercial license.

if the trade license expired,what about visa ?

If a trade license expires, it can have implications for the associated visas. It is important to ensure that both the trade license and visas are kept up to date to maintain compliance with immigration and labor laws.

How can businesses benefit from the amendment to add a partner?

Adding a partner allows businesses to expand their ownership structure, potentially bringing in new expertise, resources, and shared responsibilities. It can also facilitate business growth and improve decision-making through diversified perspectives.

What is the significance of changing the trade or company name?

Changing the trade or company name enables businesses to rebrand, align their identity with evolving market trends, or create a more distinctive and marketable image. It can help attract customers, differentiate from competitors, and adapt to changing market demands.

How does the Ded address inheritance issues through amendments?

The Ded allows for the inclusion of heirs in businesses, ensuring a smooth transition of ownership and management in case of a partner’s death. This amendment provides clarity and legal recognition of the succession plan, ensuring business continuity and addressing potential complications.

What is the purpose of obtaining duplicate copies of documents?

The option to obtain duplicate copies of documents offered by the Ded ensures businesses have backup records of essential paperwork. This helps in cases of loss, damage, or the need to provide multiple copies to different stakeholders, regulatory authorities, or business partners.

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