Adding an activity to your trade license can be time-consuming, so why bother? If you’re hoping to scale your business, adding an activity might be the best and easiest way to go about this. The process allows your business to incorporate additional activities into your existing license without setting up a whole new entity, ultimately saving time, money and resources.
How to add an activity to your trade license in Dubai: step-by-step
Adding an activity to your trade license might seem daunting, but the process is relatively straightforward. However, to ensure you can scale your business as quickly as possible, we recommend working with a reputable business consultancy or setup provider like Set Hub to avoid unnecessary delays.
Step 1: Review your current trade license
Before you set about starting the process of adding an activity to your trade license, take the time to understand the scope of your current trade license. You will need to understand whether the new activity aligns with your current license category, as if the activity is unrelated, you may need to apply for a new license. For instance, if you currently hold a license for interior design services but want to expand into furniture trading, you would need to apply for a new license since furniture trading is classified as a commercial activity.
Step 2: Select a new activity
Once you have confirmed that the new activity can be added to your existing license, take a look through the list (which will incorporate hundreds of options) and choose the relevant option. Don’t worry if the activity isn’t listed, you may be able to request a custom activity.
Step 3: Submit the correct documents and pay the fees
You will need to provide a completed application form, along with your current license and a selection of other documents (explained in detail below). Fees vary depending on the activity and jurisdiction in which your license is held.
Step 4: Wait for approval
The relevant authority (free zone or mainland) will need to review your application and documents. Once approved, the new activity will be added to your license. Processing times vary depending on the jurisdiction.
Step 5: Collect your updated license
Once your new activity has been approved, you can collect your updated trade license online or in person and begin trading.
Documents required to add an activity to your trade license in Dubai
To add an activity to your trade license, you will need to submit a specific set of documents. This typically includes:
- A completed amendment application form specifying the new activity or activities to be added
- The original trade license
- The original registration certificate
- Proof of trade name approval (usually a certificate)
- Documentation proving approval of the initial activity
- MoA
- Office lease agreement
- NOC if applicable
- Passport and visa copies for partners and shareholders
- Proof of sufficient funds
- Government approvals, if required
- Board resolution
Why add activities to your trade license in Dubai
So, why add activities to your trade license in Dubai?
Diversified revenue streams
This is the most obvious and popular reason for adding an activity. With an additional activity, you can open new revenue channels and reduce dependency on a single source of income. This can help strengthen cash flow and also help reduce the impact of seasonal slowdowns or any economic downturns, making your business more financially resilient.
Increase your reach
Adding new activities to your business may allow you to tap into different markets and broaden your customer base. For instance, adding a B2C offering to a B2B business could open you up to a whole new audience. Adding a digital service could help you reach customers beyond the UAE, increasing brand exposure and allowing you to adapt to changing market demands.
Give your business an edge
Offering more products or a wider range of services can help you stand out from your competitors. Expanding your scope with complementary activities may help strengthen your USP. So, for instance, a construction company that offers interior design services may have an edge over those that offer traditional services.
Boost efficiency
Using existing resources for new activities can help save money and enhance efficiency. Adding an additional arm may only require minimal operational adjustments, allowing you to maximise resources, maximise your workforce, office space, equipment and technology.
Compliance
The UAE has strict regulations around licensing. By ensuring that any business activities are licensed, you can avoid unnecessary legal issues and penalties. Operating an unlicensed activity, even if it is unintentional, can incur hefty fines, suspension and even business closure. It’s simply not worth the risk.
Rules for adding activities to your trade license in Dubai
When adding new activities to your trade license in Dubai, you need to make sure you tick all the boxes and meet specific requirements to avoid delays. Set Hub has helped countless entrepreneurs add activities to their trade licenses, so if you are in doubt, feel free to get in touch with our friendly team of experts to find out how we can help. Remember, to successfully add an activity to your trade license in Dubai, you will need to:
Make sure the new activity aligns with your existing license
You cannot mix a commercial activity like trading with a professional service such as consultancy on the same license unless it is explicitly allowed. If it doesn’t align, you will likely need to apply for a separate license or restructure your business.
Get approval from the right authorities
Many activities are regulated by specific government entities. You will need to get approvals from these authorities to ensure your amendment doesn’t get rejected.
Don’t forget about the amendment of the Memorandum of Association (MoA).
For companies with an MoA (such as LLCs), the document must be formally amended to reflect the new activity and notarised by a public notary in Dubai.
Submit the required documents
You must submit an updated application along with all required documents to ensure that your application is not delayed or rejected.
Pay the correct fees
Fees for amending a license vary depending on the licensing authority, the number of activities and the category. You will also need to pay for administrative processing, legal amendments and in some cases additional external approvals.
Why work with Set Hub
If you’ve already set up a successful business in the UAE, it may be tempting to add an activity to your trade license in Dubai on your own. But it’s still easy to slip up. Partnering with Set Hub can help streamline the process and ensure you can diversify and scale your business legally, as quickly as possible.
We are a leading business setup consultancy in Dubai and have helped over 25,000 clients set up in the UAE. With our on-the-ground expertise and local knowledge, we navigate the complexities of government approvals, documentation and category alignment on your behalf. Set Hub also offers tailored business solutions, so you get support that fits your exact needs, no matter the size of your business.
If you’re ready to expand your operations and add new activities to your trade license, get in touch with our expert team today.
