When running a business in Dubai, you may need to modify the scope of your company’s licensed activities due to market changes or business strategy adjustments. In such cases, the required procedure is called a “Change of Activity” on the business license.
This post explains the procedure for changing your business license in Dubai, key considerations, and the differences between Mainland and Free Zone processes.
What is a License Change?
To operate a business in Dubai, you must obtain a business license issued by the Dubai Department of Economic Development (DED) or the relevant Free Zone Authority.
This license specifies the business activities your company is authorized to carry out (e.g., trading, consulting, manufacturing). A license change refers to adding, removing, or modifying some of these activities.
Change Procedure
1) Pre-review and Consultation
First, you should check the compatibility of your existing licensed activities with the new ones you wish to add or modify. Some activities may be incompatible or subject to additional regulations.
2) Activity Code Confirmation
The UAE government assigns a unique activity code to each type of business activity. Identify the code corresponding to the activity you want to change and prepare the application accordingly.
3) Preparing Required Documents
Typical documents required include:
- Copy of the current business license
- Shareholders’ resolution
- Lease agreement (Ejari)
- Passport and visa copies (if applicable)
- Application form for activity change
4) Approval from Relevant Authorities
Some industries (e.g., education, healthcare, construction) may require prior approval from specific government bodies.
5) Application to DED or Free Zone Authority
Once all documents are prepared, submit your application either online or in person through the DED portal or the respective Free Zone Authority.
6) Update and License Reissuance
After approval, a new license including the updated activity will be issued. Additional fees or charges may apply at this stage.
Mainland vs. Free Zone – What’s the Difference?
- Businesses in Dubai are categorized into Mainland and Free Zone, and the license change procedures vary accordingly.
- Mainland companies are regulated by the DED and allow more flexibility in activity selection and combinations. You can register multiple diverse activities (e.g., trading and services) under one license, making it ideal for business expansion.
- Free Zone companies are overseen by individual Free Zone Authorities. Although the process tends to be simpler and faster, activity options may be limited or restricted, depending on the Free Zone.
Therefore, it is essential to verify approval and activity availability with the relevant authority in advance.
Conclusion
Dubai’s dynamic business environment requires frequent adjustments to stay competitive. A license change is more than a procedural formality—it’s a strategic step for refining your business direction.
With expert support, you can smoothly manage the process and strengthen your business foundation in Dubai.
Let PREMIA TNC Support You!
This article has provided a brief overview of the Dubai business license change process.
At PREMIA TNC, our team of experts offers extensive local experience and one-on-one consultation to help you successfully start and grow your business in Dubai. We offer comprehensive support, including business setup, operations, accounting, taxation, and visa services. If you need assistance, don’t hesitate to contact us. We are here to help your UAE business thrive!