Compliance Guide for Changing the Scope of Business of Dubai Companies after Registration

In the course of business operations, as market demand changes, business expansion or strategic adjustments, changing the scope of business has become a common compliance operation. Whether it is expanding from "science and technology development" to "import and export of goods", or reducing redundant business to focus on core areas, changes in the scope of business must follow the statutory process, otherwise you may face risks such as industrial and commercial penalties and invalid contracts.

Change the scope of the core process

1, internal decision-making: shareholders' meeting or board resolution.

According to the Dubai Companies Act, changes in the scope of business require a shareholders' meeting or board of directors to form a formal resolution document. The resolution shall specify the following:

reason for change: such as market expansion, technology upgrade or compliance requirements;

change Item: a specific business category added or deleted;

amendments to the Articles of Association: corresponding amendments to the scope of business provisions in the Articles of Association.

2. Material preparation: list of key documents

when submitting a change request, the following materials should be prepared:

application Form: Fill in the "Company Change Registration Application Form" and affix the company's official seal;

resolution documents: the original and copy of the resolution of the shareholders' meeting or the board of directors;

amendments to the Articles of Association: The amended Articles of Association shall be signed by all shareholders;

qualification certificate: if the new business involves special license (such as financial and medical), relevant approval documents shall be provided;

proof of identity: copies of passports of shareholders and directors, proof of residence (required for non-UAE residents);

original business license: submit the original and copy of the original and copy.

Note: Part of the Dubai 2025 Free Zones (e. g. DMCC) support online submission, but mainland companies (Mainland) usually need to go through an authorized agent.

3, government approval: the difference between free zones and mainland companies.

Free zone companies: submit an application to the free zone authority (e. g. JAFZA, DIFC);

mainland companies: submitted through the designated platform of the UAE Ministry of Economic Affairs (Ministry of Economy). If cross-free zone operation is involved, approval of the Ministry of Economic Affairs is required.

Data: Dubai handled 153000 company change registrations in 2024, with changes in business scope accounting for 28% and foreign-funded enterprises accounting for 41.2.

Changed Compliance Operations

1. Alteration of tax registration

after changing the scope of business, you need to update the tax information to the Federal Tax Administration (FTA) within 15 working days, including:

value Added Tax (VAT): If the new business belongs to the VAT taxable scope, you need to re-register your VAT account;

corporate Income Tax (CIT): In 2025, Dubai will still implement 0% corporate income tax for free zone companies, but mainland companies will need to file new business types.

2. Bank account information update

if the company has a bank account, it is required to submit the changed business license and articles of association to the opening bank and update the business scope information of the account. Failure to update in a timely manner may result in account freezes or restricted transactions.

Risk: Dubai will strengthen anti-money laundering supervision in 2025. Banks will need to regularly check the consistency of customer business and account information. Violating enterprises may face fines or account closures.

3. Re-application for special qualification

if the new business involves regulated areas (e. g. finance, education, health care), you need to reapply for the relevant qualifications:

financial business: a licence from the Central Bank of the United Arab Emirates (CBUAE) is required;

education services: Certified by the Knowledge and Human Rights Development Department (KHDA);

medical services: permission from the Ministry of Health (MOHAP) is required.

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