Incorporation of a newly established company is invariably an exciting and responsible undertaking. In preparation for such a significant event, it is essential to thoroughly prepare all documents and consult with qualified specialists.
Among the most important stages of incorporation of a new entity is trade name registration in UAE. It is no surprise since it enables you to differentiate your new company from all the others, making your work recognizable. A trade name means the title under which you will be running your organization or sometimes it is referred to as brand.
While applying for a trading name is a very straightforward activity, often aspiring entrepreneurs are unfamiliar with all the intricacies and requirements of a company name. Therefore, here you will find instructions on how to register it.
Why register a trade name in the UAE?
Why is a trade name registration required? Trade name registration in UAE is a must. It is critical to possess it, as it is utilized in the marketplace as a means of pointing-out the sale of goods or services to customers. For this objective, registration of a trade name is essential to escape penalties for defrauding UAE consumers under the UAE Consumer Protection Act Rule.
Put simply, a trade name helps to distinguish your goods or services from other products or services. Registering it is imperative for any operation, regardless of its size. It assists in generating brand recognition, differentiating a brand from its competitors, and maintaining its uniqueness.
Besides, registering a trade name is the best strategy to safeguard your business title. Otherwise, someone else might file an inquiry and prohibit the application of your brand once it is registered.
Government Authorities Involved in Trade Name Registration Procedure
Like any other jurisdiction, UAE has specialized institutions which deal with trade name registration.
Department of Economic Development (DED)
The primary place to initiate a requisition for a trade name registration would be the Department of Economic Development (DED). Each emirate has its own DED regulatory authority in charge of certification and supervision. One may either attend the DED service center in person or fill out an online application for registration. After filling in all fields of the document, submitting all supporting documents, and paying all required fees, your trade name will be reserved and you will be issued a trade name certificate. Each such document is valid for 6 months, which you will need to renew in order to continue your business.
Department in the Ministry of the Economy
The Department of Economic Development registers the trade name, whereas the Ministry of Economy registers the trademark. Generally speaking, a trademark is basically a logo for a brand. A trademark encapsulates pictograms, signs, distinguishing marks, and images employed to differentiate the brand, as well as the company logo & protect the company’s name. The Ministry of Economy serves as the authority competent for trademark registration in the UAE. There is no obligation to apply for trademark registration.
What is the time required for trade name registration?
A trade name registration is normally quick and trouble-free, provided that all the rules for the registration and the title requirements have been followed. Usually within 24 hours a trade name certificate should already be in the hands of the entrepreneur.
How to register a trade name in the UAE?
During registration, the applicant is obliged to comply with certain criteria for registering a trade name, which otherwise they may be at risk of being rejected by the state authorities. First of all, the trade name ought to be closely tied to the commercial activity of the company. A tendency exists to employ additional words in titles that accurately describe the scope of activities of the company. The motive for supplementing additional words to the proposed name is the registering authorities’ willingness to be reassured that the company will engage in exactly the type of activity that was originally declared.
The UAE is an Arab state with Islamic customs in its daily life and business. Thus, in addition to the direct prohibition to register trade names for alcoholic beverages, one must bear in mind that their views on many things in European culture may not be accepted by experts registering a trade name in the UAE.
It should be noted that if a company with a comparable name already exists, it is no longer possible to incorporate another one with the same denomination. To exclude the likeness risks of your brand from the previously registered ones, it is essential to conduct research in order to discover identical commercial identities. One of the most frequent reasons for the refusal of the registration of a trade name in Dubai is the similarity of chosen terms. The official DED website features a designated online service that will help you check your designation.
The trade name may be in English or Arabic. However, one has to be very careful as it may turn out that the declared denomination may have an obscene connotation in the Arabic language. Hence, it is highly advisable to consult an interpreter proficient in Arabic spoken in the UAE before submitting the application. In case the title is in the form of an abbreviation, you must provide its meaning.
Those who plan to register a trade name in the UAE should be aware that no elements of national symbols or organizations with international status, names, and images of people without obtaining their official consent, are allowed to be used. If a new title is considered to be in violation of the principles of morality and religion, registration will also be denied. Moreover, a company will be denied the registration of a trade name if its type of activity is prohibited in the UAE.
The major restraints are:
- trade names must not refer to countries or cities;
- a number of words such as Assurance, Bank, Banking, Financial, Government, Insurance, Royal, and Trust are prohibited;
- any words that conflict with the future operations of the organization are prohibited;
- no unjustified use of acronyms, abbreviations is permitted;
- any words that could be considered inappropriate are prohibited.
How to Check Company Registration in the UAE?
You can check a company’s registration and operation in UAE by checking its trading license. On the DED website, anyone who wishes to check the company’s license can do so, as this is not restricted information and should be available to any interested parties.
The entity may be authenticated in the UAE through the following steps:
- online status of the company’s license validation;
- written queries to the involved public authorities to ascertain the incorporation of the firm in the UAE;
- submission of internal administrative records and a copy of the organization’s business license by the company on request;
- submission of Good Standing” Certificate by the company on request.
What are the trade name registration fees?
A payment voucher or transaction number will be distributed to an applicant, which he or she will need to apply as a reference when making a payment.
The processing price will vary depending on which name you choose, as well as the Emirate in which you are registering this title. There is also a one-time fee for approving a trade name. The average price for trade name registration in UAE is AED 620. The fee for registering a foreign denomination will amount to AED 2000.