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How to Expand From One Business Activity to Multiple Activities in Dubai
Complementary services, new products, or new customers can help a growing Dubai company find new revenue streams. Dubai multiple business activities under a single license can be a viable expansion strategy for many businesses, provided that they are allowed to operate together. According to the UAE Ministry of Economy and Tourism, there are over 2000 economic activities and can be multiple activities under the economic licence.
For entrepreneurs, expansion is not just about one additional service; it’s about picking the right activity and ensuring it meets all necessary approvals and updating the licence before you start.
Can I Have Multiple Business Activities in Dubai?
Can I have multiple business activities in Dubai? In many cases, yes. The UAE Government affirms the possibility of having more than one business activity in an investment or business. But each activity should have a valid licence with respect to it.
The introduction of a new service into a business cannot be done just because it is a related service. The new activity needs to be authorised by the relevant licensing authority.
This is especially important for regulated industries as further authorisations might be needed.
Why Choose Multiple Business Activities Under One Licence Dubai?
Diversification can be more feasible with multiple business activities under one license Dubai. A company can grow its services by means of its present company instead of establishing a new company straight away.
The exact mixture depends on the authority’s issuing it. For instance, IFZA has defined a limited number of activities (up to seven) that can be conducted under one licence and other regulated activities may require a licence from specific federal bodies in Dubai or the UAE.
It is essential that you plan to expand your business according to your business model and not just the number of services you want to promote.
How to Add Business Activity to Trade License Dubai
If you want to add business activity to trade license Dubai, begin by identifying the official classification of the proposed activity.
Currently, Dubai Department of Economy and Tourism (DET) publish the service ‘Amend a trade licence’ for businesses on the Dubai mainland that wants to change the information on their trade licence, such as activities.
A practical expansion process involves:
- 1. Review the current licence and legal structure.
- 2. Determine the exact new activity.
- 3. Ensure compatibility with the current licence.
- 4. Identify if external approval is needed.
- 5. Create the documents that are required.
- 6. Submit an amendment application and fees as may be applicable.
- 7. Get the new licence before embarking on the activity.
Any of these measures taken in advance of the launch will minimize compliance risks. Professional review can also be of great benefit in finding problems early if you wish to add business activity to trade license Dubai.
Understanding Business Activity Approval UAE
Business activity approval UAE is a term that refers to the regulatory authorization or clearance needed for specific business activities. This requirement varies from sector to sector.
Activities that may require extra authorisations from the competent authorities (legal, telecommunication, health-related, transport and other specialised activities) are included in the list provided by the Ministry of Economy and Tourism.
If a company is considering a new service, it is advisable to take a look at business activity approval UAE prior to submitting the licence amendment.
Amend Trade License Dubai: Mainland or Free Zone?
The process of amendment of trade license Dubai varies with the location of the company. The same rules do not apply if you operate on the mainland or in a free zone.
Free-zone companies are subject to rules of each Free-zone authority. For instance, according to DMCC, its licence is for certain economic activities and that no activities can be conducted without having the Dubai Unified Licence and trade licence.
IFZA also differentiates between non-regulated activities and regulated activities, which are subject to approvals from certain Dubai and UAE Federal authorities. Prior to amend the trade license Dubai, check the authority, activity and premises requirements and external approvals required for your business.
Common Mistakes to Avoid
For multiple business activities under one license Dubai, avoid assuming that a similar service is automatically covered by your existing licence.
Start the new activity only after it is officially approved; do not ignore approvals from other regulators.
The other great thing is maintaining consistency of licence and actual operations. This is particularly significant for those with several activities in a single business.
Conclusion
For a successful business, transitioning from a single to multiple activities can create new lines of business and extend the reach of your business to more customers. The important thing is to choose appropriate activities, verify compatibility, obtain approval and update the licence prior to launch.
You can either apply for a multiple business activities under one license Dubai or an additional activity or for a particular regulated activity, Leela International will be able to assist you in deciding on the activities you wish to undertake, prepare the necessary documentation, coordinate the business licence and provide practical advice.
Leela International: Expand with Confidence. One Business, More Opportunities, The Right Licence.
FAQ’S
Yes, if authorized by the appropriate authority for mixing. The UAE Government has confirmed the possibility of a business having more than one activity, which must be required to obtain the appropriate license.
Each Dubai company has its own number. The number and combination allowed is dependent upon the licensing authority, licence type and activities chosen.
Determine the activity, ensure it is compatible with the license and approvals, get the necessary documents ready, and submit the amendment to the appropriate licensing authority.
It will vary depending on the type of authority and activities. Some combinations may be allowed, some activities may be regulated and some may require more than the standard. Please complete a licence review before applying.
