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How to register trade name for your company in Dubai?

Why trade name is vital to register your company in Dubai
January 5, 2024

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The UAE is emerging as a new financial capital in the Middle East region and across the world. So, starting a new business in Dubai in 2024 is a challenging but a profitable venture if undertaken correctly. One of the key tasks is the registration of trade name for your business.

Trade names together with trademarks are necessary for acquiring a trade license for your company in Dubai. Some companies consider trade names and trademarks as synonymous. However, trademarks and trade names are two distinguishable concepts from a legal perspective.

Defining the trade name

What is a trade name?

In essence, a trade name is the legal name of the company under which it conducts its business. Globally, companies use trade names for many administrative and operational functions for business. For example, identification of the company on stock certificates, bank accounts, invoices, letterhead, business contracts, tax documents, etc.

Trade name of a company is important because it is the representative of its business. By enforcing the brand, it helps in differentiating a company from others. A unique and strong trade name can uphold your brand and appeal more users.

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Considerations for choosing a trade name

Which are the things to consider to choose a trade name?

These are the points to think upon while selecting a trade name.

  • Pick a trade name that is simple and easy to spell
  • Take into account the acronyms
  • Deliberate obtaining a trademark for your trade name in the UAE
  • Reference your business activity in trade name
  • Check out premium words like Global, Middle East, etc.
  • Keep alternatives ready to continue your application process if your chosen trade name is already taken
  • Find out the meaning of trade name in Arabic to make sure it is appropriate meaning and is not offensive

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Significance of trademark

Why is a trademark significant then?

A trademark is a name, logo or symbol that a company uses for the promotion of its products or services. Trademark can specify the source or origin of your service or product in the marketplace. It is a very effective marketing tool that sets your business apart from your competitors.

Trademark assists in unique identification of your goods and services. Also, it assures your customers of consistency in the quality of products and services under your brand. Therefore, both trade names and trademarks are vital for your business registration and company branding.

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Reserving trade name for different company types in UAE

How to reserve trade name for different kinds of companies in the UAE?

To smoothly undergo company registration in UAE you have to reserve a trade name. In this regard, you need to acquire an initial approval from Department of Economic Development (DED). Here are the major categories of companies in the UAE jurisdictions for this purpose.

Now we take a look on the classifications of companies for trade names.

Mainland company

This is the process to follow if you are establishing a business in mainland Dubai or UAE.

  • Fill your application for trade name approval online on DED website.
  • You can also fill trade name application in-person in the DED office.
  • Check trade name restrictions and regulations that are given on the application form.
  • Cost for acquiring trade name varies, depending upon the content and language of the name.
  • Submit your application after completing the form online or in person to the DED.
  • After that you are given the date on which you can obtain your approval.
  • You have to pay all fees before the issuance of the trade name approval certificate.

Free zone company

In case, you are planning to form a business in free zone. Then, the process of trade name registration is a little different. Because each free zone authority has its own policies.

Branch of a foreign company

If you want to open a branch office of a foreign business. Then, you’ve to provide additional set of documents for verifying the legitimacy of the branch and its future management. You can find all the essential documents for licensing a branch on the DED website.

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Trade name does not protect trademark

Can a trade name provide trademark protection?

Getting trade name from DED in Dubai does not mean that you have trademark rights for the name. DED checks other trade names in the UAE before approving yours. However, it does not cross check trademarks.

This is possible that some company can object to your trade name at DED. They can show that they have the trademark for that name in your business category. Even, they can claim the rights to your trade name in the future.

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Conclusion

Always undertake a trademark search in parallel to the trade name search. Thus, register your trademark in UAE at the same time of the registration of trade name. So as to protect your business name and branch in the UAE.

In the event, you are looking to start a new company in Dubai. Then, professional consultants are your best guide for trademark or trade name registration. Connect with KWS Middle East to kick-off a smooth entrepreneurship journey in the UAE now.

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