Business needs change. Maybe you started as a consulting firm and want to add trading. Or you set up in Shams for the low cost but now need a Dubai address for credibility. The UAE allows both activity amendments and free zone transfers — but the process, costs, and timelines vary significantly. This guide covers every scenario.
Types of Changes You Can Make
There are four distinct types of business changes, each with different processes:
| Change Type | What It Means | Typical Cost (AED) | Timeline |
|---|---|---|---|
| Add an activity | Add a new business activity to existing license | 500–2,000 | 3–7 days |
| Remove an activity | Remove an unwanted activity | 300–1,000 | 3–5 days |
| Change primary activity | Switch your main business category | 1,000–5,000 | 5–10 days |
| Transfer to another free zone | Move your company to a different zone | 5,000–20,000 | 2–6 weeks |
Adding a Business Activity
This is the most common change. You already have a license and want to expand what your company can legally do.
When You Need to Add an Activity
- Your consulting company wants to start selling products (need trading activity)
- Your IT company wants to offer training services (need education/training activity)
- Your trading company wants to add e-commerce (need electronic trading activity)
- You want to invoice for a service that does not match your current license
Process by Zone
DMCC:
- Log into the DMCC portal
- Submit an activity amendment request
- Upload supporting documents (business plan for new activity)
- Pay amendment fee: AED 1,050
- Receive updated license: 5–7 business days
IFZA:
- Contact IFZA relationship manager or use the portal
- Request activity addition
- Pay fee: AED 500–1,500 per activity
- Updated license issued: 3–5 business days
Shams:
- Submit request through Shams portal
- Pay amendment fee: AED 500–1,000
- Updated license: 3–5 business days
Meydan:
- Online portal submission
- Amendment fee: AED 500–1,000
- Processing: 2–3 business days
JAFZA:
- Submit through JAFZA portal
- Pay amendment fee: AED 1,000–2,000
- Processing: 5–7 business days
- May require additional approvals for regulated activities
Important Rules
- License must be active — you cannot amend an expired license. Renew first.
- Activity must be available — not all zones offer all activities. Check your zone's activity list before applying.
- Some activities need external approval — healthcare, education, legal, and financial activities require ministry-level approvals regardless of the zone.
- General trading covers most goods — if you have a general trading license, you usually do not need to add specific product categories.
Removing a Business Activity
You may want to remove activities to:
- Simplify your license and reduce potential compliance requirements
- Focus your business scope for better banking or client clarity
- Eliminate activities that trigger Economic Substance Regulations (ESR)
Cost: AED 300–1,000. Process: 3–5 days. Submit through your zone's portal.
Changing Your Primary Activity
Sometimes you need to pivot your entire business. This is more involved than adding an activity:
Scenarios
- Professional → Commercial: Your consulting firm pivots to product sales. This may require a different license type in some zones.
- Commercial → Industrial: You start manufacturing instead of just trading. This requires an industrial license and potentially a different free zone with manufacturing facilities.
- Single activity → General trading: Upgrading from a specific trading activity to a general trading license for flexibility.
Process
- Submit a license amendment request to your free zone
- Provide a business plan explaining the change
- Pay the amendment fee (AED 1,000–5,000)
- If the new activity requires external approvals, submit those separately
- Receive updated license (5–10 business days)
When a Simple Amendment Is Not Enough
Some activity changes require a completely new license rather than an amendment:
- Switching from a professional to a commercial license type (different fee structures)
- Moving to an activity that your current zone does not support
- Changing from freelancer to company structure
In these cases, you may need to cancel your current license and set up fresh — or transfer to another zone.
Transferring to a Different Free Zone
This is the biggest change. There are three ways to do it:
Option 1: Redomiciliation (New in 2026)
The 2026 amendments to the UAE Commercial Companies Law introduced formal redomiciliation procedures. This allows a company to transfer its registration from one authority to another while maintaining its legal identity.
What redomiciliation preserves:
- Your company's legal existence (no dissolution needed)
- Existing contracts and agreements
- Bank accounts (in theory — banks may still require re-KYC)
- Intellectual property registrations
- Historical track record
Requirements:
- Both the origin and destination zones must support redomiciliation
- No outstanding liabilities or disputes
- Shareholder resolution approving the transfer
- Compliance with the destination zone's requirements
Cost: AED 5,000–15,000 (registration fees at new zone + deregistration at old zone) Timeline: 2–6 weeks
Option 2: Close and Reopen
The traditional method: cancel your current license and set up a new company in the target zone.
Process:
- Cancel current license (see our business cancellation guide)
- Apply for new license at target zone
- Transfer contracts, bank accounts, and assets manually
Cost: AED 10,000–25,000 (cancellation fees + new setup costs) Timeline: 4–8 weeks
Drawback: You lose your company's legal continuity. Contracts need to be reassigned. Bank accounts must be closed and reopened.
Option 3: Set Up in New Zone, Wind Down Old
Some entrepreneurs set up the new entity first, gradually transfer business, then close the old one.
Advantage: No interruption to business operations Cost: Running two licenses concurrently for 1–3 months: AED 5,000–15,000 extra
Cost of Transferring Between Specific Zones
| From | To | Estimated Cost (AED) | Notes |
|---|---|---|---|
| Shams → DMCC | 20,000–25,000 | Cross-emirate, likely close + reopen | |
| RAKEZ → IFZA | 15,000–20,000 | Cross-emirate, likely close + reopen | |
| IFZA → DMCC | 10,000–18,000 | Within Dubai, redomiciliation may be possible | |
| DWTC → Meydan | 8,000–15,000 | Within Dubai, smoother transfer | |
| Meydan → JAFZA | 10,000–18,000 | Within Dubai |
Common Reasons for Changing Zones
| Reason | Solution |
|---|---|
| Need cheaper renewal | Move from DMCC (AED 14,200) to Shams (AED 4,800) |
| Need better banking | Move from RAKEZ (MEDIUM) to Meydan (HIGH) |
| Need Dubai address | Move from Shams (Sharjah) to IFZA (Dubai) |
| Need warehouse access | Move to JAFZA (port access) |
| Need premium reputation | Move to DMCC or DIFC |
| Need faster processing | Move to IFZA or Meydan (3-day processing) |
Impact on Visas
When you transfer zones or significantly change activities, your visas are affected:
- Activity amendment (same zone): Visas typically unaffected. May need to update establishment card.
- Zone transfer: All visas must be cancelled and reissued under the new zone. Cost: AED 2,000–4,000 per visa (cancellation + new issuance + medical + Emirates ID).
- Timeline: Allow 2–3 weeks for visa transfers per person.
Visa Transfer Costs Per Person
| Item | Cost (AED) |
|---|---|
| Visa cancellation (old zone) | 500–1,000 |
| New visa issuance | 2,018–4,000 |
| Medical test | 320 |
| Emirates ID | 370 |
| Total per person | 3,208–5,690 |
Impact on Bank Accounts
Changing zones usually means:
- Activity amendment (same zone): Update the bank with your new license. Most banks accept this with no issues.
- Zone transfer: Banks may close your account and require a new application. This is the biggest risk — you could be without banking for 2–6 weeks.
Pro tip: Open an account at your new zone before closing the old one. Maintain both temporarily to avoid a banking gap.
Impact on Contracts and Clients
- Activity amendment: No impact. Your license number stays the same.
- Zone transfer (redomiciliation): Legal identity preserved. Notify clients of new address.
- Zone transfer (close + reopen): New legal entity. All contracts need to be reassigned. Notify all clients and update all legal documents.
Step-by-Step: Activity Amendment
- Check availability — confirm your target activity is offered by your zone
- Gather documents — business plan, shareholder resolution, current license
- Submit online — through your zone's portal
- Pay fee — AED 500–2,000
- Wait for approval — 3–7 days
- Update bank — provide new license to your bank
- Update VAT registration — if the new activity changes your VAT obligations
Step-by-Step: Zone Transfer
- Research destination zone — verify activities, costs, and banking ease
- Check redomiciliation eligibility — contact both zones
- Settle all liabilities — pay outstanding fees, fines, or debts at current zone
- Apply at new zone — submit a new application or redomiciliation request
- Open new bank account — before closing old one
- Transfer visas — cancel and reissue under new zone
- Cancel old license — after everything is set up
- Update all registrations — VAT, ESR, UBO, contracts
Common Mistakes
1. Trying to amend an expired license. Renew first, then amend. This costs an extra cycle of renewal fees.
2. Not checking activity availability before starting. Some zones have limited activity lists. Verify before paying any fees.
3. Closing bank account before opening new one. This creates a banking gap that can last weeks. Run both accounts in parallel.
4. Forgetting to update VAT registration. If your activities change, your VAT obligations may change too. Update the FTA within 20 business days.
5. Underestimating visa transfer costs. Each person on your visa needs to be cancelled and re-issued. Budget AED 3,000–5,700 per person.
Next Steps
- Compare zones to find the right fit: Free zone comparison tool
- Check costs at your target zone: DMCC costs, Meydan costs, IFZA costs
- Understand compliance for your new structure: Annual audit guide
- Contact your free zone relationship manager to discuss your specific situation
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