Running a business in the United Arab Emirates (UAE) often starts with a focused plan, but as operations expand, new opportunities naturally arise. Whether it is launching a product line, offering a new service or entering a fresh sector, the next step is to add a new business activity to an existing licence. This blog post explains when you should add a new business activity, the step-by-step process to add a new business activity and how to submit your application to the licensing authority correctly. It also outlines what to expect once you have applied and why keeping your licence up to date matters for compliance and growth.
Business growth often brings with it fresh directions. If you are considering expanding into another area, it is important to assess whether the activity is already covered under your current trade licence. If it is not, then you should take steps to add a new business activity to an existing licence.
• Your company is now providing services or products not listed under your current business activity. • You have identified a new revenue stream requiring expansion into a different domain. • You intend to participate in bids, tenders or government contracts that require a specific activity to be registered. • Shifts in the market or client demand have created opportunities in new sectors. In any such case, taking timely action to update your licence ensures your operations remain legally compliant and enhances your standing with clients, partners and government entities.
It is important to understand that in the UAE, the Department of Economic Development (DED) in each emirate is the government authority responsible for issuing and regulating business licences on the mainland. For example, if you operate a mainland company, you will engage with the DED of the respective emirate for licensing matters. On the other hand, if your business is registered within an economic zone, the respective free zone authority acts as the licensing body. Knowing which authority governs your licence is essential when you submit your application to the licensing authority for adding new activities.
The UAE has established clear procedures for businesses aiming to broaden their scope. Below is the step-by-step process to add a new business activity to your existing trade licence. 1. Review your current business licence Start by reviewing your existing trade licence carefully. Identify the specific business activity or activities currently permitted and take note of your licence type, whether commercial, professional or industrial, as this influences what can be added. 2. Check the compatibility of activities Not all activities can be added under the same licence. Confirm that the new business activity aligns with your existing licence type and business structure. For instance, a professional licence may have restrictions on commercial or industrial activities. If activities are incompatible, you may need to consider alternate licensing or business structures. 3. Research additional approvals if needed Certain business activities are regulated and require additional approvals or permits. This is often the case for sectors such as healthcare or financial services. It is advisable to confirm the requirements with your licensing authority before you submit your application to the licensing authority. 4. Prepare supporting documents Collect all necessary documentation that may include: • A copy of your current trade licence • A completed amendment application form • A No Objection Certificate (NOC) from shareholders or sponsors, where applicable • Any specific certificates or approvals related to the new business activity Ensuring all documents are complete and accurate helps avoid delays. 5. Submit application to licensing authority With documents ready, you can submit your application to the licensing authority, either online or at the relevant service centre. Clearly state the new business activity you want to add, using precise terminology from the authority’s approved list. Fees for the amendment process will need to be paid at this stage. Incomplete or inaccurate submissions may be rejected, so double-check your application before sending. 6. Await approval and receive the updated licence Following submission, the licensing authority will review your application, which may include verification steps or liaising with other departments. Once approved, you will officially receive an updated licence that reflects the newly added activity. Until the updated licence is issued, avoid conducting business under the new activity to remain compliant.
Understanding when you should add a new business activity and how to do it correctly is essential for sustaining a compliant and growth-ready business in the UAE. As your enterprise evolves, so must your legal framework. By following the step-by-step process to add a new business activity, conducting compatibility checks and engaging effectively with your licensing authority, your expansion can be both smooth and successful. Whether you are starting a new venture or adding new business activities to an established firm, choosing Ras Al Khaimah Economic Zone (RAKEZ) can simplify the business licence process and strengthen your overall approach to business management or compliance. Contact RAKEZ to transform your entrepreneurial journey now. Phone: +971 7 204 1111 Email: info@rakez.com
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