A business keeps growing and expanding constantly. In this process, companies in the United Arab Emirates (UAE) need to be mindful of the impact of changes in the business on compliance under the VAT rules.
One such change can be adding or making changes in the business activities list for your company.
Business activity is decided the second step for setting up a company in Dubai. As an investor/entrepreneur, you must list down the business activities needed for your business operations. Sometimes it so happens that you might want to add/change the activities under the list.
Let us understand how this works.
The Department of Economic Development (DED) Dubai looks out for the procedure. The adding/changing activities must be matching with the existing activity group. If the adding/changing activity is not checking with a current activity group, then you must select a new one and also remove all existing activities. External departments approval also required for some business activities like approval from Municipality for Building Contracting, RTA approval for Transport.
Steps Required to Add/Change Business Activity in Dubai
The steps include getting initial approval from DED Dubai. The documents under this include -
- Registration and also the licensing application
- Proof of the reserved trade name
- Original License
- Original Certificate of Registration.
- Support from the DED (for foreign company branches registered with the Ministry)
- Board Resolution of Parent companies to change the activity (for departments of foreign companies not registered with the Ministry of Economy).
- Office lease agreement copy
After submitting the documents, make an amendment to the Memorandum of Association (MoA) regarding change of business activity.
The steps further are -
- Initial approval from Department of Economic Development (DED) or Tas’heel Centre.
- Type BR1 form and also get the signature of the Managing Director and then submit at DED.
- Signature of all partners is not required for amendment, but all names must be typed.
- Then DED officer will write NOC for adding activity.
- Write Addendum to LLC Agreement from a legal translator and also get attested from Notary Public at DED.
- If the agreement is only in Arabic, then no need for the Legal translator’s seal.
- All partners of the company have to attend at Notary to sign the Court Agreement. If any existing partner is outside the country, then he/she can send Power of Attorney (POA) authorizing another Partner to represent him/her at the Court.
- Submit the needed documents along with attested Addendum at any branch of DED.
- Get the new business license with new activity after the payment at DED.
Once you complete these steps, you can resume your company operations.
How can we help?
We at Commitbiz can help you set up your business in Dubai. Right from business incorporation to office space, we can help you with it. Our advisors have years of experience in this field and can make the process hassle-free. Contact us today.