Before diving deep into the procedure of registering a company name for your business in Dubai mainland, let us understand a few concepts.
Are you confused with a Trade Name, Legal Name and Trademark?
What is a Trade Name?
A trade name is a name given to a company for its operational purpose. Often it is referred to as a fictitious name or doing business name. The trade name is the name the public sees, like on signs and the internet. In Dubai, Business name registration is the third step of the registration process.
What is a Legal Name?
A legal name is the name of an entity or person who owns a business. A legal name must be registered with a state government and includes a proper ending, such as an LLC or LLP, after the title. The government uses the legal name for communication purpose.
Government Authorities Involved in Trade Name Registration Process
Department of Economic Development (DED)
The Department of Economic Development (DED) is the government body authorizes to set and drive the economic agenda of Dubai, UAE. The DED buttresses the structural transformation of Dubai into a diversified, innovative service-based economy that aims to improve the business world and accelerate productivity growth. The DED and its agencies develop economic policies and plans, identify and support the growth of strategic sectors, and provide services to local and international investors and businesses.
Department in the Ministry of the Economy
Department in the ministry of the economy helps in the development of national industries, imports and exports. Regulating the Small and Medium Enterprises (SMEs) sector and encouraging entrepreneurship. Protection of consumer rights and intellectual property rights. Trade Mark registration is done by the department in the ministry of the economy, and the department makes further enquiries of a trademark of economic development.
Procedure for Dubai Trade Name Registration
Trade name process can be online or offline based on convenience. Here are a few steps for trade name registration,
1. Choose a Name Based on Rules and Regulations
Brand name should be selected based on the rules and regulations. DED has a right to cancel the name if the business name does not follow any of the rules mentioned below.
Rules and Regulations for Choosing a Company Name
- The company name should reflect the business activity.
- The company name should not be reserved by copyright by a similar business in Dubai.
- The trade name shouldn't contain indecent words.
- The trade name should not hold God's name.
- Few words are not accepted, such as Emirates, City's names, Districts and Airports codes of Dubai.
- Names of continents and countries should not be used in trade names; however, nationalities can be used as a company name.
- A business name cannot begin with either International, Middle East, Global etc. or translated names.
- A business name shouldn't contain abbreviations of Government Organizations.
- A business name cannot partially or fully contain any of the active global brands like Apple, Samsung, Kia, and so on.
- The company name shouldn't contain any sign of sectarian religious organizations, global political organizations, and example: FBI, Vatican and so on.
- Subsidiary's name cannot be similar to the parent company's name. Although suffix and legal name are not considered as a part of a name.
- Terms like "ME" and "CO" are restricted for individually owned companies unless they come as part of a word like "LCME Trading", "ACTO Services."
- Family names can be only if the first name is included and must be the name of one of the proposed shareholders.
- Titles should be written literally and shouldn't be translated, for example: If the Arabic name is «العاليــة الســماء», then trade name should be must be written as "Al Samaa Al Aalya".
2. Check the Availability of the Trade Name
After choosing a name for a company in Dubai, you need to check the Availability. You can check the Availability through public service offered by the Local Ministry of Economy.
3. Reserve your Business Name
This step is crucial in case you need a trade license for your economic activity. To obtain the license, you have to reserve a business name by taking the permission of the DED in Dubai. The foreign investors can send online the application for the trade name approval or submit it to the Department of Economic Development in Dubai (DED). For more details about reserving the trade name, you may contact Agents in Dubai.
4. Make the Payment
Payment can be online or offline based on the user's convenience. You have to pay business name reservation fees within 72 hours of receiving the payment voucher. A trade name certificate is valid for six months, and A trade name certificate that has already expired should be reserved again. All fees should be paid. Here are few details regarding payments,
- Trade name reservation costs AED 620
- If your business name contains special features, you should pay additional fees between AED 1000 and AED 2000.
- Trade names which are in English and cannot be converted into Arabic will cost AED 1000.
- If trade name has regional references such as "East", "West", "International" will cost AED 1000.
- Trade name including word "Gulf" costs AED 2000.
- Trade name including abbreviations costs AED 2000.
- Trade names including numerical (numerical which are written in words only) costs AED 2000.
- If part of the name is trademarked, then it costs AED 1000.
- Trade names, including Foreign (Non-Arabic) words, costs AED 2000.
Commitbiz is a company which guides you in setting up a business from scratch. Choosing a Company name involves so many rules and regulations. Don't worry about that; we are waiting to help you! Feel free to contact us.