Trade name registration in Dubai is among the earliest stages in the process of forming a company. Many times, it coincides with its registered legal name. Dubai’s Department of Economic Development (DED) carries out this procedure. All business firms wishing to incorporate in the UAE must register their trade name. It is a required step to acquire clearance for smooth operations. However, there are certain factors to consider before you begin a Dubai trade name registration.
In this article, we go over the registration process in-depth, from the required paperwork to the overall understanding of the process. As a result, you can learn all you need to know about trade name registration in Dubai. We address the following points:
- Everything you need to know about trade name registration in Dubai
- What is the process of trade name registration in Dubai?
- In-depth procedure for a trade name registration in Dubai
- Difficulties with trade name registration in Dubai
- Why should you use Connect Business Centers to drive your trade name registration and firm creation?
1. Everything You Need to Know About Trade Name Registration in Dubai
A company’s official name is frequently its trade name. The first step in registering a company in the UAE is not, for example, to get an office space, but to get a trading name. Equally, all enterprises must reserve their trade name through an offline or online trade name registration in Dubai before proceeding with the trade license issuing processes.
The trade name registration in Dubai gives the firm an identity. However, according to Dubai commercial legislation, there are a few guidelines that must be followed, particularly throughout the process of LLC business formation.
1.1 What is a trade name registration in Dubai?
The process of trade name registration in Dubai is the same as registering a company name with the Department of Economic Development. Any legal business operating in the Emirate requires a company’s trade name registration with DED approval.
Let us first understand a few concepts before delving deeper into the process.
1.2 What exactly is a trading name?
A trade name is a name that a firm uses for its operations. It is frequently the same corporative name. This is the name that the general public sees such as on signs and on the internet. A Dubai trade name registration is an early stage in the procedure of setting up a company.
1.3 What is a legal name?
A legal name is the name of the firm or person that owns it. A legal name must introduce to the state government and have a proper ending, such as an LLC or LLP, after the title. The government uses the legal name for communication reasons.
So, the company name is the signature by which a commercial company shows itself collectively, jointly, or anonymously. It is the legal attribute that appears in the deed or document of incorporation and that allows demonstration of its legal constitution, as well as the invoice, payment of taxes, and the like.
In general, a commercial company has a legal name that coincides with the one registered as a trading name. But it is not mandatory for such a coincidence.
1.4 What exactly is a trademark?
It is a symbol, word, or phrase that a company or product legally registers and uses to represent itself. Therefore, a registered trademark is any sign capable of graphic representation that serves to exclusively distinguish products and services from others in the market.
Additionally, the owner of this industrial property right -that grants its exclusive use- may be a natural or legal person whose name does not have to coincide with the name that appears in the trademark registration.
1.5 Why is trade name registration in Dubai essential?
A trade name is the official name of a firm that it uses to conduct business. Note that its legal business operations in Dubai are impossible without it. Remarkably, it gives their entity a personality. Before beginning trade license insurance formalities, all entities must secure a trading name by registering with the DED.
Of course, you must follow all of the instructions as outlined in the UAE commercial property rules.
1.6 Government authorities involved in the trade name registration process
Interestingly, only a couple of administrative offices participate in this process.
1.6.1 Department of Economic Development
The Department of Economic Development (DED) supports Dubai’s structural transformation into a diverse, innovative service-based economy to improve the business world and accelerate productivity growth.
So, the DED and its agencies create economic policies and plans, identify and support the growth of strategic sectors, and assist local and international investors and businesses.
1.6.2 Department of Commerce in the Ministry of the Economy
The Ministry of Economy’s Department of Commerce aids in the development of national industries, imports, and exports. It governs the Small and Medium Enterprises (SMEs) sector while encouraging entrepreneurship, consumer rights protection, and intellectual property rights. This department of the Ministry of Economy is in charge of trademark registration.
2. How is the Trade Name Registration in Dubai?
A Dubai trade name registration is as simple as filling out an application form and submitting it to the Economic Department. You must also submit all required documents with your application. You will also need to pay trade name registration fees.
2.1 What are the trade name registration fees?
In general, you decide to register your business under the trade name of your choice. But there are specifications to meet. Associated with this, there are fees.
The Department of Economic Development of the Emirate determines the fees for offline or online trade name registration in Dubai. Due to differences in DODs among Emirates, fees in trade name registration in Dubai may differ from those in other Emirates.
So, according to the Dubai Economic Department, the following are the main nominal charges:
- The fees for a trade name registration in Dubai are AED 620.
- If you want a foreign name, the Dubai trade name registration fees are AED2000.
Below, in the section “complete payment,” there is more information about the current fees, particularly in interesting special cases. For more information on company or trade name registration fees, contact your preferred business center in Dubai.
3. In-depth Procedure for Trade Name Registration in Dubai
As said before, trade name registration in Dubai is as simple as applying for the DED. Documents must, however, submit with the application, and trade name reservation fees must pay at the counter. It is simple to do, and the name reservation is valid for six months.
Of course, if a trading name is too similar to an existing one or does not correspond with the specified terms and conditions, the Department of Economic Development has the authority to cancel or amend it. For this, be careful because if the period for the trade name registration expires, it must re-register the name and pay all outstanding fees. If the reserved name finally is not issued, the business name is canceled.
Offline or online trade name registration in Dubai can be driven by a Business Center. These firms can do your trade name registration in Dubai the most simply and effectively possible. Here are the steps for a trade name registration in Dubai.
3.1 Pick a name based on the rules and regulations
You must choose the brand name under the rules and regulations in force in Dubai. If the business name violates any of the rules outlined below, DED has the authority to cancel it. These are some of the rules and regulations for naming a business.
- The company name should reflect the nature of the business.
- The company name should not be reserved by a similar business in Dubai through copyright.
- No derogatory words should be included in the trade name.
- The trade name should not contain deity names.
- A few words, such as Emirates, city names, Dubai district codes, and airport codes, are not accepted.
- Trade names should not include the names of continents or countries; however, nationalities can be used as a company name.
- A company name cannot begin with International, Middle Eastern, Global, or translated terms.
- Government organization abbreviations should not be used in business names.
- A business name cannot contain any of the active global brands.
- The company name should not contain any references to religious organizations or global political organizations.
- The name of the subsidiary cannot be similar to the name of the parent company. However, the suffix and legal name are not considered part of the name.
- Family names are permitted only if the first name is included and must be the name of a proposed shareholder.
3.2 Verify the trade name’s availability
After deciding on a name for your company in Dubai, you must check its availability. You can check availability using the local Ministry of Economy’s public service.
3.3 Reserve your trade name
This step is critical if you need a trade license for your business. To obtain the license, you must first reserve a business name with the DED in Dubai. Foreign investors can apply for trade name approval online or by submitting it to the DED. Contact Agents in Dubai for more information on reserving the trade name.
3.4 Complete the payment
Payment can make online or offline, depending on the user’s preference. Business name reservation fees must pay within 72 hours of receiving the payment voucher. A trade name certificate is valid for six months, and an expired trade name certificate should reserve again. Here are some payment specifics:
- As previously stated, trade name reservation costs AED 620.
- If your company name contains unique characteristics, you should pay an additional fee of AED 1000 to AED 2000.
- Trade names in English that cannot be translated into Arabic will cost AED 1000.
- AED 1000 fees if the trade name contains regional references such as “East”, “West”, or “International”.
- A trading name that includes the word “Gulf” is charged with AED 2000 for
- Fees of AED 2000 if a trading name contains abbreviations.
- A trademark in a portion of the name has a fee of AED 1000.
- AED 2000 for trade names that include numerals written in words only.
- AED 2000 for trade names, including foreign (non-Arabic) words.
4. Difficulties with Trade Name Registration in Dubai
What are the reasons why the DED does not approve a trade name registration in Dubai? In essence, a Dubai trade name registration means that you are reserving a name for your company. It is nothing more than securing a name for your company that will be used to identify it.
Therefore, other commercial entities must not register similar trade names. If a similar name appears before authorities, they will not approve it.
A trade name is unacceptable in the UAE if it violates public order or morality. Furthermore, the DED authority does not approve of misleading trade names. The DED ensures that your offline or online trade name registration in Dubai follows commercial requirements activity.
In addition, the business owner must ensure that the trade name registration does not include any religious reference. Also, it forbids any trade name registration in Dubai associated with the ruling authorities.
With all that said so far, we have tried to provide you with a comprehensive overview of the trade name registration. If you need more information about company formation or anything else related to this, you should hire a professional business setup consultant for a hassle-free service.
5. Why Should You Use Connect Business Centers to Drive Your Trade Name Registration and Firm Creation?
Connect Business Centers can help you with a variety of tasks. For many years, we have assisted numerous companies in starting a business from the ground up in the UAE. As a result, we have connections and networks with both government and private organizations. Because of these networks, we can quickly solve any problem.
Indeed, there are numerous laws and regulations to follow when selecting a company name. Do not be concerned; we are here to assist you! Please do not hesitate to contact us.