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Dubai is known to be one of the thriving business hubs, holding immense opportunities for businesses to flourish. A trade license is a legal requirement in the UAE. Issued by the Department of Economy & Tourism in mainland (DET) ( formerly known as DED) or by the relevant free zone authority depending on the business jurisdiction.
Trade license specifies the business activities businesses are permitted to perform. As companies grow and learn, updating activities on their UAE trade license under the regulations has been one of the major requirements. Whether it’s expanding product line, new services, or becoming open to current trends in the market, ensuring the updation of the trade license in Dubai would guarantee legality and maximum growth opportunities.
Why Updating Trade License Activities is Important
- Legal Compliance: Running activities other than updating might result in punishment, fines, or stoppage of business operations. If your trade license in Dubai does not comply with your activities, you will face legal problems.
- Business Expansion: New activities added under a trade license can enable a business to venture into other markets and innovate. It may expand open business opportunities and provide a better market presence.
- Increased Credibility: Officially authorized activities on your trade license increase the credibility of your business in front of customers. Business owners who follow all the local regulations and rules are transparent and dependable to the company and the customers.
At What Point Should You Update Your Trade License Activities?
- Expansion of Product or Service Range: You must renew your license when introducing new products or services that were not part of your original business. This will ensure your business is up to par with Dubai’s regulations and that you are legally authorized to do business along those lines.
- Market Demand and Trends: Being responsive to the demands of the consumers or new trends can be another tool for competition. The market dynamics may require changing your activities to remain relevant.
- Business Restructuring or Rebranding: In business restructuring or rebranding or even after a merger with a new business entity, the nature of business activities may have completely changed because the focus also changes. In such a case, the trade license must also change to reflect this difference in emphasis and activities.
- Regulatory Activities Change: The different regulatory changes will require businesses to change their activities in the trade license in one of the various sectors available in Dubai.
Activities You Can Add to Your Trade License
- Commercial Activities: It deals with business lines that involve retail, trading, e-commerce services, and product-based services, which are best for those goods-selling businesses.
- Professional Activities: A professional license is required for professional activities, and new service additions can be easily made to an existing permit if it deals with consulting, advisory, or healthcare services businesses.
- Industrial activities: This includes manufacturing, production, or packaging, and an industrial license may be required for such business activities. Activities related to production or large-scale manufacturing should be reflected in your trade license.
- Other related activities: For hospitality, healthcare, or technology industries, add an appropriate activity alongside its regulations and conditions.
How to Update Trade License Activities
Adding new activity to your trade license is a straightforward process.To meet the relevant licensing authority’s requirement, businesses need to follow each step carefully.
Eligibility and Licensing Conditions
Before renewing your UAE trade license, ensure that any new business activity you plan to add is compatible with the activities listed on your existing license. Also, check if you need a commercial, industrial, or professional license or other prerequisite regulations.
Contact the Licensing Authority
Contact DET for mainland operations or the specific free zone authority to get detailed requirements and regulations for your new activity.
Required Documents
Obtain the following documents: a copy of your trade license, the application form for adding a new activity, and other specific permits. Certain areas, such as healthcare or educational sectors, will need extra permissions and approvals. Profound will provide complete guidance on whether external approval is required and how you can get it.
Apply through DET Or consult a business advisor like Profound
Apply online through DET or the relevant free zone authority’s portals. Proceed to pay the application fees to have the application processed. To simplify this procedure, Profound’s expert team will provide complete assistance.
Pay Fees and Wait for Approval
Fees vary depending on the nature of the activity. This may include processing fees and government approval. The time of getting one’s approval varies, depending on what activity is being considered and who approves it. Once the approval & payments are successful, you will receive an updated trade license with additional activities, which shows that you’re officially permitted to perform those additional business activities mentioned on your trade license.
Cost Considerations for Adding Activities
Application fees at the initial stage may vary depending upon the nature of activities added and relevant regulatory requirements.
- Renewal Fees: In some cases, new activities introduced can affect the renewal fees of your yearly trade license. Be ready to pay extra when you renew your trade license in Dubai.
- Multiple Permits: Depending on the nature of the new activities, you may need to secure additional permits. This will also lead to extra spending.
- Other Relevant Expenses: Considering the nature of the activities you would introduce, you could alter your office space, hire new staff, and replace or acquire new equipment.
Challenges in adding new activities and How to Overcome
- Delays in Approvals: In some sectors, application processes can be lengthy. For instance, regulated sectors take longer. Be prepared for minimal interference by proper planning.
- Complex Regulations: Some industries, like healthcare and finance, have vital regulatory requirements. Use the services of professionals who understand your requirements to ensure full compliance.
- Controlling Financial Impact: Extra costs for new activities and the trade license renewal in Dubai can be a source of financial burden. Proper budgeting and financial planning can help control costs effectively.
The process is straightforward yet time-consuming and requires a dedicated person to handle it. Business consultants like Profound can make this process simple, speedy, and stress-free for you.
Benefits of Dubai Trade License Activities Expansion
Market Expansion
An increased customer base is highly probable, with added activities and new access to touch new markets with business reach.
Competitive Edge
More product lines would help a diversified business remain updated with the current market trends and competitive in a fast-moving market.
Evidence of compliance with the law
Updating a new activity on your trade license proves that you’re authorized to perform this activity legally, which helps your business avoid unnecessary fines & penalties.
Business Sustainability
More activities in your business make it less reliant on a single revenue stream. It is thus better prepared for the fluctuating nature of the market as more activities are strengthening it.
Conclusion
Updating your trade license activity is necessary while expanding your business and remaining within Dubai’s regulatory regime. After each step, the trade license in Dubai should be updated to have credibility for new business opportunities and keep the operations legally sound. It can be made less complex by consulting expert business consultants like Profound and avoiding unnecessary complications. Whether expanding a product line or entering a new market, updating a license is critical to business growth in Dubai.
