As businesses evolve, their activities often need to be updated to reflect new directions, market trends, or growth strategies. In Dubai, the process of changing your company activity involves specific steps, from obtaining approvals to ensuring all legal requirements are met.
This article details everything you need to know about changing your company activity, including the documentation required, key reasons for making a change, and how to navigate the process seamlessly.
Steps to change a company’s activity in Dubai
Changing a company activity in Dubai is a straightforward process. It’s managed by the Department of Economic Development (DED) for mainland companies, while free zone companies follow their respective authority’s guidelines. Though the steps are similar, specific requirements may vary. Here’s how it works for mainland businesses:
1: Identify the new business activity
Start by identifying the specific activity you want to add or change. Dubai’s business landscape includes a comprehensive list of over 2,000 economic activities, categorised by type, such as commercial, professional, industrial, and tourism. Ensure the new activity aligns with your existing business licence. For activities outside the current scope, you may need to amend your trade licence or obtain approvals from additional authorities.
For free zone companies, the process may vary. Each free zone has its own list of approved activities and licensing regulations, so it’s essential to check with the specific authority governing your free zone.
2: Obtain initial approvals
Submit an application for the activity change to the DED or the relevant free zone authority. This application typically includes your updated business plan, an explanation of the proposed change, and relevant supporting documents. If the new activity requires approval from other regulatory bodies – such as food handling, healthcare, or financial services – obtain a No Objection Certificate (NOC) from the appropriate authority.
3: Amend the Memorandum of Association (MoA)
For LLCs, changes to the business activity require amendments to the MoA. This document outlines the new activity and must be legally translated into Arabic if necessary. All partners must sign the amended document in front of a notary public or, if unavailable, provide Power of Attorney to a representative.
Depending on the jurisdiction, free zone companies may need to revise their Articles of Association (AoA) instead.
4: Submit the required documents
Prepare and submit the following documents to the DED or the free zone authority:
- Original trade licence.
- Original Certificate of Registration.
- Amended MoA (or AoA).
- Proof of reserved trade name (if applicable).
- Office lease agreement.
- BR1 form signed by the managing director.
- NOCs from relevant authorities, if applicable.
Double-check the list with your chosen authority, as requirements may vary slightly.
5: Pay the fees
Pay the applicable fees for the licence amendment. Fees depend on the type of activity and the jurisdiction. For mainland companies, this includes DED administrative costs, while free zone companies may have additional charges for regulatory approvals.
6: Collect the updated trade licence
Once the DED or free zone authority processes your application, you will receive an updated trade licence reflecting the new activity. This document confirms your legal right to operate under the revised scope.
7: Notify relevant stakeholders
After obtaining your updated licence, ensure you update stakeholders about the change. Notify your bank, clients, and suppliers and amend contracts or agreements to reflect the new activity.
Key differences for free zones
While the general steps for changing a company activity in Dubai are similar across mainland and free zone jurisdictions, free zones often streamline the process by offering centralised digital portals, reducing administrative complexity. This is due to their specialised nature and focus on attracting businesses in specific sectors.
However, free zones often limit business activities to their specific focus areas. For example, a technology-focused free zone won’t be permitted to add activities like hospitality or manufacturing.
Additionally, sector-specific approvals may be required depending on the nature of the new activity. For example:
- Healthcare activities might require approvals from the Dubai Health Authority (DHA).
- Education-related businesses may need endorsements from the Ministry of Education.
- Food-related activities may require inspection and approval from the relevant food safety authorities.
Common reasons to change a company activity in Dubai
Changing your company’s activity in Dubai often comes down to adapting to business growth, industry changes, or keeping up with regulations. Here’s a look at some of the most common reasons businesses make this adjustment.
Expanding into new opportunities
As businesses grow, they often want to offer new products or services to meet customer demand or tap into fresh markets. Updating your trade licence to match these changes keeps things transparent and ensures you’re operating within the law.
Keeping up with industry or economic changes
Sometimes, shifts in the economy or advancements in your industry make it necessary to change direction. For example, as technology evolves, some services might no longer be relevant, and companies need to pivot. Updating your licence helps you stay relevant and competitive.
Staying compliant with regulations
Dubai’s licensing rules can change over time, and businesses must adapt to stay compliant. Whether it’s an update in how activities are classified or new requirements, keeping your licence current avoids fines and potential disruptions.
Mergers, acquisitions, or restructuring
When companies merge, acquire new businesses, or change their structure – like moving from a sole proprietorship to an LLC – it often affects the scope of their activities. Reflecting these changes on your licence ensures everything aligns with your new setup.
Rebranding or shifting focus
If your business is pivoting to a new niche or strategy, updating your activities shows the world – and the authorities – that you’re serious about your new direction. It’s a simple step that ensures your business identity stays aligned.
About Worldwide Formations
Since 2008, Worldwide Formations has established itself as a trusted corporate advisory service provider in the UAE, assisting businesses and entrepreneurs from over 90 countries. With expertise across mainland, offshore, and free zone company setups, we offer tailored solutions to meet your unique needs.
Our comprehensive services extend beyond company formation, including visa support, accounting, corporate taxation, and financial audits. As an officially registered agent with all major free zones in the UAE, we ensure a seamless process, whether you’re launching a startup or expanding an existing enterprise.
With over 10,000 satisfied clients and a network of global partners, we are your one-stop destination for establishing and growing your business in the UAE.
Ready to take the next step? Contact Worldwide Formations today to explore how we can support your business goals.
