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Licensing
Changing or Amending Trade License Business Activities in UAE
Starting a business in Dubai is a continuous process, yet it is straightforward and detailed. It often starts with choosing the right authority, legal entity, license, and most fit activities for your company, to follow the jurisdiction’s regulations and keeping your company within the grounds of the legal framework.
Trade License Activities in Dubai, in particular, are often a wide range of specific business pursuits that would need to be carefully crafted and chosen to fit your exact business plan. Often, you will be required to choose at least one (1) business activity, depending on the license applicable for you.
However, as time goes by, as you continue to learn about your business and Dubai’s economic environment, sometimes you may need to change these activities. Thankfully, Dubai allows you to add, change, or withdraw your previously chosen activities for your trade license.
To Add, Change, Or Withdraw Your License, Here Are The Things You Should Know:
You will need to apply for a License Amendment. It is the process of revising your previously set inclusions and options for your current license package. You may undergo License Amendment during the time of License Renewal. Aside from adjusting your business activities, other alteration applicable for License Amendment include the following:
○ Changing of trade name
○ Changing of business location
○ Changing of local sponsor (for mainland companies)
○ Changing or adding of management details
○ Adding or removing of partner/s
○ Changing of authorized capital
● You cannot choose a business activity that does not match your trade license. Activities are categorized based on their nature of activity. To successfully change your previously set activities with your authority, you must choose an activity that matches your current license. Else, you will need to apply a new license application.
● Each authority has its own regulations when undergoing the license amendment process. While all allows changes in your licenses, each has a unique way of permitting this process for investors. Some are not strict, while others allow minimal changes only.
Some activities need third-party approvals. Business activities focused on food services, chemical manufacturing, construction and architecture, health services are just some of the sectors which are required to be checked and regulated by authorities due to their inevitable nature. There is a possibility that some of your new activities, aside from the approval of your authority, may require approval from a different regulatory body.
- The first step would be to prepare needed documents for the said process. As per DMCC regulations, you will need to prepare the following:
a. Accomplished Renewal and Amendment Form
b. Board Resolution of Corporate Shareholder (if any)
c. Board Resolution issued by the Parent Company (for branches)
d. Certificate of Incumbency (for companies with corporate shareholders or branches)
e. Shareholder’s Resolution
f. Joint Shareholder’s Resolution (for Joint Venture Companies)
g. Power of Attorney (if needed)
h. Memorandum (if needed)
i. Articles of Association (if needed)
On the other hand, Dubai DED requires additional documents such as:
a. Trade License
b. Commercial Register
c. Partner’s List
d. NOC from sponsor
e. Addendum to Memorandum of Association
f. Passport and visa copies of shareholders
g. Emirates ID of shareholders (if resident)
- Optional step: Get the approval of the Regulatory Authority of your new activity.
- Once all needed documents are secured, proceed to the nearest service centre of your authority and pay the applicable fee. In DMCC, License Amendment costs AED3000 plus Activity Fee of AED1515. Meanwhile, Dubai DED requires AED500 for the License Amendment Fee and AED20 for the Knowledge and Innovation Fee, also depending on the voucher. These fees might change anytime without prior notice. On average, the process takes 2-3 days for both authorities.
License Amendment and other License-Related services in the UAE can sometimes be a long, tedious process. Aura Vision Advisors, through its years of experience in assisting investors in getting their Trade License in Dubai as well as other corporate services, offers its help in fulfilling your needs in running a business in the UAE.
We are a team of skilled individuals equipped with enough knowledge and reach that will benefit your growing business in the UAE. To know more about our services, contact us today.
Guide to Renewing Your Trade License in Dubai: All You Need to Know
When establishing a business in the UAE, acquiring a trade license is imperative, and annual renewal is essential for the continuous operation of your company. In Dubai, businesses are required to renew their trade licenses annually to adhere to regulatory standards.
The Department of Economic Development (DED) in Dubai oversees the trade license renewal process, ensuring efficient handling of the necessary documentation. Understanding the various types of trade licenses available in Dubai is crucial before initiating the renewal process.
It’s noteworthy that a trade license only authorizes specific trade activities and does not confer ownership rights over any associated property. Collaborating with local business setup consultants can alleviate the stress of navigating the trade license renewal process in Dubai.
Failure to renew a trade license promptly can result in penalties, suspension of the business license, or cessation of business activities.
If you opt to manage the process independently, here is a comprehensive guide to the Dubai trade license renewal process:
Documents Required for DED Trade License Renewal in Dubai
When renewing your trade license in Dubai, you must prepare the following documents:
- Ejari Registration: Obtain a registration certificate from Ejari confirming your tenancy contract. Failure to possess a valid Ejari certificate may lead to fines.
- Valid Tenancy Contract: Ensure your tenancy contract is valid for at least one month or more to qualify for trade license renewal. The contract should be verified and approved by Ejari.
- Copy of the Previous Trade License: Include a copy of your previous trade license to demonstrate your authorization to conduct business activities in the UAE.
- BR/1 Form: Complete and sign the BR/1 form, the license renewal form. All existing partners must sign this form. Attach all required documents to this form before submission.
- Photocopies of Passports for all Business Partners: Provide photocopies of the passports of all partners involved in your business. For sole proprietors, submit a photocopy of your passport.
Upon gathering these documents, submit your renewal form to the Department of Economic Development (DED). The renewal process can be conducted online or offline, depending on your preference. Regulatory procedures and assessments are conducted by relevant governing bodies in Dubai, regardless of the application method chosen.
For free zone businesses in Dubai, additional documents may be required alongside the general trade license renewal requirements. These may include:
– No Objection Certificate (NOC): Some free zones may necessitate an NOC from the relevant authority or sponsor for trade license renewal.
– Certificate of Continuity of Existence or Good Standing: Free zones might request a certificate verifying compliance with regulations and active status.
– Current Trade License (for Branches of Onshore UAE Companies): Branches of onshore UAE companies in free zones may need to provide the parent company’s current trade license during renewal.
Cost of Trade License Renewal in Dubai
The cost of renewing a trade license in Dubai varies based on jurisdiction and economic zone. Typically, the renewal fee ranges from AED 8,000 to AED 15,000. However, these figures are approximate and subject to change based on specific requirements and business activities.
Renewing your trade license in Dubai is now more convenient with the assistance of Aura Vision Advisors. Our team of business setup consultants ensures a seamless renewal process, handling all necessary documents and paperwork. From obtaining approvals to offering comprehensive support, we manage every aspect, allowing you to focus on business growth.
For further information and assistance on trade license renewal in Dubai, reach out to Aura Vision Advisors today. Contact us at +971 XXXXXXXXX or send a WhatsApp message to +971 XXXXXXXXX. Alternatively, email us at info@XXXXXXXXXXXXXXX.com.
As Dubai-based business consultants, we aid global investors in establishing their envisioned business ventures in Dubai and across the United Arab Emirates.