How to Add Activities in Trade License UAE?

Expanding a business setup in the United Arab Emirates (UAE) requires a valid trade license that aligns with your operations. As your company grows, adding new services or diversifying operations becomes essential to stay competitive in the UAE’s dynamic economy. Whether you’re a business owner looking to expand services or tap into market opportunities, understanding the regulatory framework and guidelines set by licensing authorities is crucial. It is important to understand how to add activities in trade license properly to widen your business scope. This article provides a step-by-step guide on how to add activities in a trade license UAE to ensure compliance.

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What is a Trade License in UAE?

A Trade license in UAE, also known as a business license, is an official document issued by the Department of Economic Development (DED), allowing companies to conduct specific business activities legally. This license is mandatory for entities involved in importing and exporting goods or engaging in commercial activities. Businesses can opt for a general trading license, which permits multiple trade activities under a single license, offering flexibility across various sectors. The UAE provides six types of trade licenses: industrial, commercial, crafts, tourism, agricultural, and professional licenses, each catering to different business operations.

What are Trade License Activities in UAE?

Trade license activities in the UAE refer to the specific business operations a company is legally permitted to conduct under its trade license. These activities are predefined by the Department of Economic Development (DED) and must be selected when applying for or modifying a license. Depending on the business type, activities can fall under the commercial, industrial, professional, tourism, agricultural, or crafts sectors. Companies can add or remove activities as they expand, ensuring compliance with UAE regulations while maximising growth opportunities.

How to Add Activities in UAE Trade License?

Expanding your business in the UAE often requires adding new activities to your trade license. The process involves obtaining approvals from the Department of Economic Development (DED) and submitting the necessary documents. Below are the step-by-step procedures to modify your trade license and legally incorporate additional activities into your business.

Step 1: Obtain Initial Approval from DED

To initiate the process, you must apply to the DED for initial approval to modify your trade license. This approval confirms that your proposed business activities comply with UAE regulations and allows you to proceed with the necessary amendments.

Step 2: Apply for Trade License Changes

Once initial approval is granted, you need to fill out and submit the business license amendment application, known as the BR1 form. Ensure that all required signatures from directors or shareholders are included, if applicable.

Step 3: Obtain a No Objection Certificate (NOC)

A No Objection Certificate (NOC) is a crucial legal document that confirms there are no objections to adding new activities to your trade license. This certificate may be required from stakeholders, partners, or relevant authorities.

Step 4: Submit the Required Documents

All business entities must complete the necessary legal formalities, such as obtaining approvals and amending business documents. To finalize the amendment of trade license, the following documents must be submitted to the DED:

• Original business license and registration certificate
• Completed business license amendment application
• Copy of the company’s office space lease contract
• Initial approval certificate from the UAE’s Registry Office
• Parent company board resolution (if applicable)
• Permission from the DED
• No Objection Certificate (NOC)
• Attested amendment to the LLC Agreement and Court Agreement
• Updated Memorandum of Association (MoA) reflecting the new activities

Note: For Limited Liability Companies (LLCs), additional legal formalities must be completed:

• A legal translator must translate an addendum to the LLC Agreement.
• The Notary Public must attest to this addendum at the DED.
• If applicable, a Court Agreement must be completed at the Notary.

Step 5: Obtain Your Updated Trade License

Once the DED reviews and approves all documents, you will receive a notification to proceed with the payment. After payment is made, you will receive your updated trade license reflecting the newly added business activities.

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How to Delete an Activity in Trade License UAE?

To remove a business activity from your trade license in the UAE, you need to follow the process outlined by the Department of Economic Development (DED). Log in to the relevant licensing portal, navigate to the activity management section, and select the Activity Code for the service you wish to delete. Once selected, click Delete to remove the activity from your trade license. Ensure the modification complies with UAE regulations and does not affect your business operations before finalising the changes.

How to Change Address in Trade License?

To change the business location address on your trade license, you must amend the company’s Memorandum of Association (MoA) by completing an addendum reflecting the new address. The Notary Public must attest to this addendum at the Department of Economic Development (DED). Once notarized, you must submit the required documents and the application for amending your trade license. The change will be officially approved once the DED verifies the records and updates the business license accordingly.

Things to Know while Amending Trade License Activities UAE

Making changes to a trade license in the UAE is a crucial step for businesses looking to expand or restructure their operations. Before proceeding with any amendments, it is essential to understand the following key aspects.

Trade License Amendment Process

Businesses can apply for a trade license amendment to add activities or make other modifications. This process can also be completed during the license renewal period. Amendments may include:

• Changing the trade name
• Updating the authorized capital
• Modifying the business address
• Adding or removing partners
• Changing local service agents or sponsors (for Mainland Companies)
• Updating company management details

Eligibility for Adding New Activities

Additional activities can only be included if they align with the company’s existing business structure and license type. A separate business license may be required if the new activities do not comply.

Regulations and Compliance Requirements

Each business zone and licensing authority in the UAE has its procedures for trade license amendments. Before applying for any changes, it is essential to check with the relevant authorities for the most up-to-date regulations.

Third-Party Approvals

Some business activities require approvals from external entities such as government departments, municipalities, or trade organizations. These approvals must be secured and submitted along with the trade license amendment application if applicable.

Conclusion

In conclusion, expanding your business activities in the UAE requires careful planning and adherence to regulatory requirements. Adding new activities to your trade license ensures compliance while allowing your business to grow and diversify in a competitive market. You can smoothly modify your trade license by following the proper procedures, obtaining necessary approvals, and ensuring alignment with your business structure. Staying informed about jurisdiction-specific regulations and seeking professional assistance when needed can help streamline the amendment process and support your business expansion in the UAE.

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FAQs

1. How can I add a new activity to my trade license in the UAE?

To add a new activity, obtain initial approval from the DED, submit an amendment application, secure required third-party approvals, update the MoA (for LLCs), and receive the modified license after approval.

2. What is a trade license activity?

A trade license activity defines the specific business operations a company is authorized to perform under its license, as regulated by the DED.

3. What activities are included in a general trading license?

A general trading license allows businesses to import, export, re-export, and trade various goods, including food, clothing, electronics, furniture, and electrical items.

4. How can I update my trade license on TAMM?

• Log in using UAE PASS.
• Submit the amendment application with the required documents.
• Await approval or rejection notification.

5. What is a license activity code?

A license activity code is a unique identifier assigned to each business activity, specifying its category and regulatory approvals.

6. What activities can be conducted under a general trading license?

Businesses can engage in sales, storage, import-export, and distribution. It also covers wholesale and retail trading of clothing, electronics, furniture, and accessories.

7. Why should I add new activities to my trade license?

Adding activities helps:

• Expand revenue opportunities.
• Stay competitive.
• Boost business credibility.
• Comply with UAE laws.
• Optimize existing resources.

8. What trade license modifications are available?

You can update:

• Business partners or stakeholders.
• Business location.
• Manager’s details.
• Business activities.
• Capital amount.
• Trade name.