How to Add New Business Activities or Open a Branch in Dubai

How to Add New Business Activities or Open a Branch in Dubai. Dubai’s business environment evolves rapidly. As markets shift and opportunities expand, many companies reach a point where their existing trade licence no longer reflects what they actually do. Others decide to scale operations by launching a second location. Therefore, understanding how to add new business activities or open a branch in Dubai becomes essential for sustainable growth.

At Black Swan Business Setup Service, we guide entrepreneurs, SMEs and established corporations through every regulatory step. In this comprehensive guide, we explain the legal framework, approval process, costs, timelines and strategic considerations involved in expanding your operations in Dubai.

Why Businesses Expand in Dubai

Dubai offers:

• 100% foreign ownership in most sectors

• Strategic global connectivity

• Zero personal income tax

• Strong banking infrastructure

• Pro-business regulatory reforms

Consequently, businesses often expand into new verticals or open additional branches to capture demand.

However, expansion must align with UAE licensing regulations. Otherwise, penalties or licence suspension may follow.

Understanding Business Activities in Dubai

Every company in Dubai operates under a specific trade licence issued by the Department of Economy and Tourism (DET) for mainland businesses, or by the relevant Free Zone Authority.

Your licence lists approved business activities, which define what you can legally offer.

For example:

• A marketing consultancy cannot legally trade goods without adding a commercial activity.

• A technical services company cannot offer accounting services without regulatory approval.

Therefore, before launching a new service line, you must update your licence.

Part 1: How to Add New Business Activities in Dubai

Adding activities may seem straightforward; however, each activity falls under regulated categories. Some require external approvals from government authorities.

Step 1: Identify the Correct Activity Code

Dubai maintains an official activity list. Each activity has a unique code.

For example:

Activity Type	Category	Special Approval Required?
IT Consultancy	Professional	No
Food Trading	Commercial	Yes (Municipality)
Real Estate Brokerage	Professional	Yes (RERA)
Healthcare Services	Professional	Yes (DHA)

Therefore, selecting the correct classification prevents future compliance issues.

Step 2: Check Licence Compatibility

Not all licences support every activity.

There are three main licence categories:

• Commercial Licence

• Professional Licence

• Industrial Licence

If your new activity falls outside your current category, you may need to amend the licence type rather than simply add an activity.

Step 3: Obtain External Approvals (If Required)

Certain sectors require additional government consent.

Examples include:

• Healthcare – Dubai Health Authority (DHA)

• Education – KHDA

• Tourism – DET Tourism Department

• Financial Services – Central Bank

Because approval timelines vary, professional guidance ensures smoother processing.

Step 4: Submit Application and Pay Fees

Once approvals are secured, you submit a licence amendment request.

Typical cost range:

Amendment Type	Approximate Cost (AED)
Add activity (standard)	1,000 – 2,500
External approval activity	2,000 – 5,000+
Licence category change	5,000 – 10,000

Fees depend on activity type, jurisdiction and existing licence structure.

Timeline for Adding Activities

In most standard cases:

• No approval required → 1–3 working days

• External approvals required → 1–3 weeks

Therefore, planning ahead avoids operational delays.

Part 2: How to Open a Branch in Dubai

Sometimes adding activities is not enough. Instead, companies expand physically by opening a branch office in Dubai.

What Is a Branch Office?

A branch is an extension of the parent company. Unlike a subsidiary, it does not form a separate legal entity.

Key features:

• Same ownership structure

• Same legal identity

• Operates under parent company name

• Conducts identical activities

However, branches must obtain separate licences and office space.

Types of Branch Structures

Branch Type	Description
Mainland Branch	Operates under DET; can trade anywhere in UAE
Free Zone Branch	Operates within specific free zone
Foreign Company Branch	Extension of overseas company

Choosing the correct structure depends on business goals.

Related Post:

» Business Setup in Dubai: Essential Steps for New Entrepreneurs

» How to Register a Business in Dubai as a Foreigner?

» How to start a construction Business in Dubai & get License

» What is the Best location to Setup Business in Dubai?

» How to Set Up a Business in Oman Free Zone

Step-by-Step Process to Open a Branch in Dubai

Step 1: Board Resolution

The parent company must issue a board resolution approving the branch opening. This document confirms:

• Intent to open branch

• Appointment of branch manager

• Allocation of authority

If the parent company is foreign, documents must undergo notarisation and attestation.

Step 2: Trade Name Reservation

You must reserve a trade name aligned with the parent company.

For example:
“XYZ Global LLC – Dubai Branch”

Step 3: Secure Office Space

Dubai requires physical office space for branch registration.

Options include:

• Traditional office lease

• Flexi-desk (Free Zone)

• Co-working space (where permitted)

The Ejari registration becomes mandatory for mainland branches.

Step 4: Submit Licence Application

Required documents typically include:

• Parent company licence

• Memorandum of Association

• Board resolution

• Manager passport copy

• Office lease agreement

Once approved, the authority issues the branch licence.

Estimated Cost to Open a Branch in Dubai

Costs vary by jurisdiction.

Expense Category	Mainland (AED)	Free Zone (AED)
Licence Fee	10,000 – 15,000	12,000 – 20,000
Office Space	15,000 – 60,000+	10,000 – 40,000
Registration & Admin	3,000 – 7,000	3,000 – 8,000

Therefore, total setup may range from AED 25,000 to AED 80,000+, depending on location and size.

Key Differences: Adding Activity vs Opening Branch

Factor	Add Activity	Open Branch
Legal Structure	Same licence	Separate licence
Cost	Lower	Higher
Physical Location	Not required	Required
Expansion Scale	Service expansion	Geographic expansion

Thus, your expansion strategy should align with your long-term goals.

Common Challenges During Expansion

Although Dubai simplifies business processes, companies may face:

• Activity misclassification

• Approval delays

• Incorrect documentation

• Lease compliance issues

• Visa quota limitations

Therefore, working with experienced consultants like Black Swan Business Setup Service minimises risk.

Strategic Considerations Before Expanding

Before adding activities or opening a branch, consider:

• Market demand

• Regulatory impact

• Staffing requirements

• Banking implications

• VAT obligations

Additionally, expansion may affect your corporate tax planning under UAE regulations.

Why Choose Black Swan Business Setup Service?

At Black Swan Business Setup Service, we combine regulatory expertise with practical business insight.

We provide:

• Activity selection guidance

• Approval coordination

• Licence amendments

• Branch registration support

• PRO and visa services

• Ongoing compliance advisory

Most importantly, we ensure your expansion remains fully compliant with Dubai regulations.

Conclusion

Expanding your operations in Dubai presents significant opportunity. However, success depends on understanding regulatory procedures and aligning your licence with your business model.

Whether you plan to add new business activities in Dubai or open a branch office, careful planning ensures smooth approval and long-term compliance.

At Black Swan Business Setup Service, we simplify the entire process. From documentation to final licence issuance, our team manages every step professionally and efficiently.

If you’re ready to scale your operations, contact us today and turn your expansion strategy into reality.

Social:

https://www.pinterest.com/pin/790522540887187134

https://www.linkedin.com/feed/update/urn:li:share:7428029400325222400/