CONTEXT
In the UAE, a company's legal capacity in commercial activity is defined entirely by the activity codes on its trade licence. There is no flexibility in how activities are described — each must correspond exactly to an officially approved activity code. Operating outside those codes, even incidentally, constitutes a regulatory violation and exposes the company to fines, licence suspension, and operational restrictions.
LEGAL BASIS
- Federal Decree-Law No. 32 of 2021 on Commercial Companies
- Regulations of the relevant Department of Economic Development (mainland) or free zone authority
- Sector-specific regulatory requirements where applicable
WHAT CONSTITUTES A VIOLATION
A violation occurs when a company conducts any activity not expressly listed in its trade licence — regardless of whether the activity is incidental, occasional, or closely related to a licensed activity. Each activity must correspond to an official activity code approved by the licensing authority.
Additional approval requirement: Certain activity categories require not only an activity code but also prior appro...