Why trade name is important for legal procedure to register your company in Dubai?KWS Admin
Starting a new business in Dubai is a challenging but a profitable venture if undertaken correctly. One of the key tasks in acquiring trade license for your company in Dubai is the registration of trade name and trademark.
Though often considered synonymous, trade names and trademarks are two distinguishable concepts in UAE from a legal perspective. Trade name is the legal name of the company under which it conducts its business in UAE. Trademark is a name, logo or symbol that a company uses for the promotion of its products and services in UAE.
Significance of Trade Name and Trademark
Trade name is used for many administrative functions such as identification of the company on stock certificates, bank accounts, invoices, letterhead, business contracts and tax documents. Trade name of your company is important because it is the representative of your business and brand and helps in differentiating your company from others.
Trademark is used to specify the source or origin of your product or service in the marketplace. It is a very effective marketing tool that not only sets your business apart from your competitors and in unique identification of your goods and services but also assures your customers of consistency in the quality of products and services marketed under the trademark.
Reserving your trade name in UAE
The first step for your company registration in UAE is to reserve a trade name and obtain an initial approval from Department of Economic Development (DED) that is government body regulating Mainland businesses.
For Mainland Company
- Complete your application for trade name approval online on DED website.
- Also check trade name restrictions and regulations that are listed alongside online application.
- Cost for acquiring trade name varies; depending upon the content and language of the name.
- After completing and submitting your online application whether online or in person to the DED, you will be provided with the date on which you can obtain your approval.
- You are required to pay all fees before trade name approval certificate can be released.
For Free Zone Company
If you are planning to form a free zone company, the process for trade name registration will be different as each free zone authority has its own policies.
Branch of a Foreign Company
If you want to open a branch of an existing company, you will be required to provide additional set of documents that will verify the legitimacy of the branch and its future management. You can find all the necessary documents for licensing a branch on DED website.
Things to Consider Before Choosing Trade Name
- Consider acronyms
- Reference your business activity in trade name
- Check out premium words that will be more costly than others such as Middle East, Global etc.
- Always keep trade name alternatives so that your application process in not stalled in case the name has already been taken
- Find out the meaning of trade name in Arabic in order to make sure it has appropriate meaning and is not offensive
- Trade name should be simple and easy to spell
- Consider obtaining a UAE trademark for your trade name
Trade name registration does not give trademark protection
Obtaining trade name from DED in Dubai does not mean that you have trademark rights for the name. DED only cross checks other trade names in UAE; it does not cross check trademarks. So, it is possible in future that someone comes along claiming to your name at DED showing that they have the trademark for that name in your business category.
Therefore, always undertake a trademark search in parallel and also register your trademark in UAE at the same time so as to protect your business name and branch in UAE.
If you are looking to start new business in Dubai, contact us to get to know our business formation services.