How to choose the right business activities for a Dubai trade license

What a business activity is and why it matters

A business activity is a defined type of work that a license allows, such as e-commerce, digital marketing or management consultancy. Each activity in our list has its own code and name. When we issue your trade license, the activities you chose appear on it.

Your activities matter in five practical ways:

• What you can do. Your company should only carry out the activities on its license. Work outside them is a compliance risk.
• Cost. The license fee covers activities from a set number of activity groups. Activities from more groups cost extra.
• Approvals. Some activities need a regulator's approval before you can operate.
• Banking. Banks review your trade license as part of their KYC and compliance checks, and they compare your activities with your business plan and expected transactions.
• Clients and suppliers. Clients may ask for a copy of your trade license before they sign a contract or register you as a supplier.

How activity groups affect your license cost

Every activity in our list belongs to a group. For example, e-commerce sits in the trading group, while digital marketing and management consultancy sit in the professional group. A license with e-commerce and digital marketing therefore uses 2 groups.

At DHCC Free Zone, a trade license starts from AED 12,500 a year, including a flexi-desk and activities from up to 3 activity groups. You can combine activities from those 3 groups on one license. If you add activities from a fourth group or more, the license costs extra. If you are confident in your list, a 2 or 3-year license saves 15% on the license fee.

Rather than guess the extra cost, add your activities in Ask DHCC on our business activities page. As you add them, it shows how many groups your license uses and which approvals it needs. You can then carry them into the cost calculator to see your full setup cost, line by line.

Tip: If two activities describe the same work, check whether one of them sits in a group you already use. That can keep you within 3 groups without leaving out anything you need.

How to choose your activities, step by step

Work through these steps before you apply. They take the guesswork out of a long list.

1. Describe your business in one or two sentences. Say what you sell, to whom and how. For example, a company that builds mobile apps for retail clients.
2. List your revenue streams. Note each way you will earn money in the first year or two, such as project fees, product sales or subscriptions.
3. Search in plain words. Type each revenue stream into Ask DHCC. It searches our 2,000+ business activities and suggests matches.
4. Read the activity names closely. Pick the activity that describes your work most precisely, rather than the broadest one.
5. Check the group and approving authority. Note which group each activity sits in and whether a regulator's approval is shown.
6. Test your list against your business plan. Your activities, business plan and expected transactions should tell the same story, because your bank will compare them.
7. Confirm with an adviser. At DHCC Free Zone, an adviser can check your list and tell you whether anything is missing or needs approval.

Questions that help you spot the right activities

• Will you sell physical products, digital products, services or a mix?
• Will your customers be businesses, consumers or both?
• Will you hold stock, import goods or ship them abroad?
• Will you teach, train, publish content or give health advice? These areas often include activities that need approval.
• Will you handle other people's money or investments? Some financial activities need Central Bank of the UAE approval.

Examples from our activity list

The table shows how some common business ideas map to activities in our list. It reflects our list at the time of writing. Ask DHCC always shows the current group and approving authority.

A business often needs more than one activity. A software company that also runs paid courses, for example, may need an education or training activity, and some of those show KHDA approval. Check each revenue stream separately.

Activities that need a regulator's approval

Some activities need approval from a regulator as well as a trade license. Examples from our activity list include:

• Dubai Health Authority (DHA): healthcare activities
• Knowledge and Human Development Authority (KHDA): education and training
• UAE Media Council: media activities
• Dubai Municipality: activities such as restaurants and some engineering consultancy
• Roads and Transport Authority (RTA): some transport activities
• Central Bank of the UAE: some financial activities
• Dubai Real Estate Regulatory Agency (RERA): some real estate activities

The approval requirement belongs to the activity, not to the sector as a whole. In our list, for example, some consultancy activities show an approving authority and others show none. That is why it pays to check each activity one by one in Ask DHCC.

If your list includes a regulated activity, plan for the extra step. Your adviser will confirm the approvals for your activity and what each one involves.

Common mistakes to avoid

• Choosing too many activities. Adding everything you might do one day can push you past 3 groups and add cost. Start with what you will sell in the first year or two.
• Choosing an activity that is too broad. A vague activity can make it harder for banks and clients to understand what you do. Pick the most precise match.
• Missing a revenue stream. If you sell products online as well as services, you may need a trading or e-commerce activity too.
• Overlooking approvals. A regulated activity needs an extra approval step, so check before you apply.
• Copying another company's list. Their activities fit their business, not necessarily yours. Start from your own revenue streams.
• Letting activities and paperwork drift apart. Your business plan, website and invoices should match your licensed activities.

Changing or adding activities later

Businesses change, and your license can change with them. Adding, removing or changing activities is an amendment, which is a separate request from your license renewal. At DHCC Free Zone, you can request amendments online, and the fees are shown before you confirm. Our renew and manage page explains how.

Before you add an activity, check its group and approving authority, just as you did at setup. A new group can change your license cost, and a regulated activity brings its own approval step.

The right activities make the rest of your setup simpler, from approvals to your bank account. Search our list, build your package, then talk to an adviser to confirm your choices before you apply. You can also read our guide to business setup cost in Dubai.