In Dubai’s dynamic and competitive market, your business identity begins with a registered trade name. With the UAE’s ascent as a global financial center, obtaining a unique trade name is not just a legal requirement but also a strategic move to solidify your presence in the market. This name will reflect your brand’s essence, setting it apart from the variety of businesses that are defining Dubai’s business landscape in 2024.
Discover the seamless process of trade name registration in Dubai and how it enhances the credibility and visibility of a company in the thriving business hub.
What is a Trade Name?
A trade name is the name under which a company operates, often referred to as a “doing business as” name. This is the company’s physical identity, which is visible on signs, billboards, websites, and profiles. It is more than that since it is the name under which your business operates and embodies the essence of your business.
Trade name registration is an integral part of a company’s identity in Dubai and an important step in the company formation process. In Dubai, registration of trade name commonly comes as the third stage of setting up a business. Applicants are allowed to request a reserved trade name either before or after an initial approval has been granted to them. However, before continuing with the registration, one must know some key aspects of a trade name to ensure it aligns with company goals and complies with local legislation.
Purpose of Trade Name Registration
To legally start your business activities in Dubai you must first register your company name. Every business needs to register a trade name to stand out from its competitors in the marketplace. Your registered business name reveals important information about your business operations and helps customers understand what you offer.
To officially register trade name of your company in Dubai, you need to submit it to the Dubai Department of Economic Development(DED) and follow the rules already set. It is the best way to make sure that your business complies with legal regulations thus creating a good background on your investment in UAE.
Guidelines for Trade Name Registration Dubai
To register the trade name for your business, you are required to follow the rules and regulations of the Department of Economic Development for trade names in Dubai. Here’s what you need to keep in mind while choosing a name for your company:
- Check whether your chosen name conflicts with an existing organization. You must change it since DED will not approve and may even charge you with copyright infringement if it does.
- Always use the full name. Avoid abbreviations since this can create confusion and lack of passing of the true image of what the company entails.
- It is crucial to keep in mind that the use of any foul, inappropriate words in the name of your company is prohibited. The name must not hurt the sentiments of any person. Additionally, it may render your company name unappealing and off-putting.
- There should be no mention or reference to God, religion, caste, community, or gender. Using words that are closely related to your business is the most effective approach.
- Your company’s name should conclude with the initials that represent its structure, such as the legal business acronym like LLC or Services.
- If your trade name has a region or a trademark, particular terms like Gulf or an Arabic name will be classified as a premium trade name and priced accordingly.
- Your trade name should not start with terms like ‘International,’ ‘Middle East,’ or ‘Universal,’ or their Arabic equivalents.
- When considering naming your company after an individual, be sure to use their complete name. It’s acceptable to use their first name, but using just their last name is not allowed.
Process of Registering a Trade Name in Dubai
For trade name registration in Dubai, you need to follow several important steps. Make sure you comply with local regulations and obtain the rights to your business name. Here is the comprehensive overview of the trade name registration process:
Step 1: Select a Trade Name
- Compliance with Rules: Choose a name that complies with the Department of Economic Development (DED) guidelines. Names that fail to follow these guidelines may face cancellation.
- Check Availability:After you have shortlisted one or more potential names for starting a business in Dubai, the next thing is to determine the availability of the name. This is important to make sure that it does not have any similarities to any existing trademarks or established business names. To determine whether your chosen trade name has been registered, you can go to the Local Ministry of Economy public service portal.
Step 2: Reserve a Trade Name
- Application Submission:Reserve your business name by applying for approval to the DED. This can be done either online or by visiting the DED office in person. This reservation is required to secure a trade license.
Online Procedure to Reserve the Trade Name
- Sign Up and Log In:Access a DED-approved platform by creating a new account or logging in if you already have one.
- Book a Trade Name: Go to the section for trade name reservations on the platform.
- Enter the Name:Provide the desired trade name that truly reflects your business identity.
- Select Business Activity:Identify your primary and additional business activities from the list provided. This ensures that the trade name aligns with your business activities.
- Reserve the Name: Follow to the guidelines to secure your business name. At this point, you might be required to pay reservation fee. Trade name reservation fee must be paid online.
Step 3: Make the Payment
- Payment Options:You can choose to make payments for trade name reservations either online or offline, based on your preference.
- Fee Structure:The costs associated with registering a trade name depend on specific characteristics of the name:
- Names with unique features may incur additional fees
- English names that cannot be translated into Arabic
- Names with regional references like “East” or “International”
- Names including the word “Gulf” or abbreviations
- Numerical names (written in words)
- Partly labeled names
- Names that include foreign (non-Arabic) words
Step 4: Trade Name Registration
After reserving the trade name online, the next step is to formalize the registration:
- Visit the Economic Department:Go to the nearest Department with your reservation details.
- Complete an Application Form:Fill out the application form for trade name registration, providing all required supporting documents.
- Pay the Fees:Pay the necessary trade name reservation fees at the counter.
Step 5: Receive the Trade Name Certificate
- Certificate Validity:Once payment is confirmed, a certificate for the reserved trade name will be issued
Foreign investors can submit their trade name approval application online or in person at the DED office in Dubai. Completing this step is critical before moving forward with other aspects of the business setup. For even smoother trade name registration, you can consult expert business setup consultants like Xpert Advisory.
Documents Required for Company Name Registration in Dubai
Here is the list of documents required to register a trade name with Dubai DED:
- No objection certificate (NOC) for specific business activities
- Passport and visa copies of all shareholders
- Memorandum of Association (MoA)
Timeline for Trade Name Registration
In Dubai, the process of registering a trade name is notably quick and streamlined. Typically, processing a trade name reservation can be completed in approximately 24 hours. It is essential to provide all required information, and the chosen name must adhere to local DED guidelines.
Cost of Registration of Trade Name in UAE
The costs of trade name registration in Dubai vary based on the emirate where you choose to establish your business and the trade name you choose for your company. The registration of trade names falls under the jurisdiction of the Dubai Department of Economic Development (DED).
The costs of registering a trade name in Dubai are quite affordable. Trade name registration fee range from AED 620* to AED 2000*, influenced by factors such as the inclusion of foreign names, numerical terms, or regional references.
Validity of a Registered Trade Name in Dubai
After reserving a trade name in Dubai, it remains valid for six months. This provides you with plenty of time to secure a trade license and complete the essential steps for fully registering and establishing your business. However, if you do not obtain a trade license and finish the necessary business registration steps within these six months, the reservation on the trade name will expire.
After expiration, the trade name you originally reserved will be released and potentially accessible to other applicants, resulting in the cancellation of your initial reservation associated with your application.
Advantages of Registering a Trade Name in the UAE
Registering your trade name offers several key benefits for your business in Dubai:
- Secures Intellectual Property: In Dubai, trade name registration serves the purpose of protecting your intellectual property to lessen the risk of identity theft and provide legal recognition of your business logo or name.
- Prevents Name Duplication: It prevents registration of another company with the same name, among other benefits that are associated with the easy process of setting up a business.
- Enhances Branding: A registered trade name helps to bolster your product identity and gives your company a unique face and appearance in the marketplace.
- Establishes Legal Identity: It enables the Dubai authorities to stipulate your business officially, which gives legal legitimacy to both commercial and business actions.
- Opens New Market Opportunities: Having a registered company name in Dubai allows a firm to function in Dubai’s broad market and offer new goods or services under a well-known brand identity.
- Supports Multi-jurisdictional Expansion: When entrepreneurs intend to operate under one business name in different regions, then registration helps maintain conformity while at the same time expanding the base in the market.
Conclusion
Trade name registration in Dubai is an essential step towards launching a thriving business. It not only provides legal recognition and a distinct identity for your business but also helps in promoting the credibility and visibility of your business in the market. When you comply with these legal procedures and register your trade name through the DED, you create a foundation for efficient business experience and success in one of the fastest-growing global economic centers. In new business ventures and even in business expansion, trade name registration is the key to making a distinctive and unique business name for the business.
FAQs
1. Why is it necessary to register a trade name in UAE?
Registering a trade name is crucial for distinguishing one company from another, as every business needs to establish its identity in the UAE marketplace. It also enhance the credibility and visibility of the company.
2. What is trade name reservation in Dubai?
Trade name reservation in Dubai means the process of obtaining the name for your company through the authorization of the Dubai Economic Department. It makes sure that your trade name is secure and complies with legal frameworks to facilitate company formation.
3. What is the cost of trade name registration in the UAE?
The costs of registering a trade name in Dubai are quite affordable. Trade name registration fee range from AED 620* to AED 2000*, influenced by factors such as the inclusion of foreign names, numerical terms, or regional references.
4. What is the difference between legal name, trade name and trademark?
The legal name is the official name used to incorporate the business, the trade name is the public name used when advertising and the trademark protects unique identifiers of business.
