When setting up a business in the UAE, one of the first and most important steps is registering your company. However, before you can proceed with the registration, you must reserve a trade name for your business. This step is crucial as it establishes your company’s official identity and sets the foundation for all subsequent legal and business activities. 

What is a Trade Name? 

A trade name is the official name by which your business will be recognized. It’s the identity of your company in the eyes of both the government and the public. Before you can apply for a trade license or complete other registration formalities, reserving a trade name is mandatory in the UAE. 

This blog is a part of our UAE Business Setup Guide: Mainland and Freezones Pillar blogpost.

Why is Trade Name Reservation Important? 

Reserving a trade name is not just a formality; it’s a legal requirement in the UAE. It ensures that your business has a unique identity and helps prevent any potential conflicts with existing businesses. Additionally, having an official trade name is essential for branding and marketing purposes, as it will be how customers and partners recognize your business. 

The Trade Name Reservation Process 

The process of reserving a trade name is straightforward and can usually be completed within 24 – 48 hours. Here’s how you can reserve a trade name for your business: 

1. Sign Up and Log In: Start by signing up and logging in to a Department of Economic Development (DED) approved platform with the help of a PRO partner or a corporate service provider. 
2. Book a Trade Name: Navigate to the trade name reservation section. 
3. Select a Name: Choose a name that aligns with your business identity and goals. 
4. Select Business Activity: You’ll need to specify your business’s primary and secondary activities. 
5. Check Availability and Reserve: Verify the availability of the chosen name. If it’s available, you can proceed to reserve it by making initial payment. 

Once you’ve reserved the name online, fill out an application and submitting the required documents to specific Economic Department.  

Guidelines for Choosing a Trade Name 

When selecting a trade name, there are specific guidelines set by the Department of Economic Development (DED) that you must adhere to: 

• Uniqueness: The trade name must not be identical or too similar to existing names, especially those involved in similar business activities. 

• No Religious Terms: Avoid using words with religious connotations. 

• No Country or Government References: The trade name should not include the name of any country, government, or ministry. 

• No Sectarian or Discriminatory Terms: The name should not suggest any sectarian, racial, or ethnic bias. 

• Avoiding Pre-existing Brands: The name must not resemble well-known brands or existing trade names registered with the Ministry of Economy, such as “McDonald’s” or “Huawei.” 

• No Universal or International Terms: The words “Universal” or “International” should not be used as the first part of the trade name in either English or Arabic. 

Payment and Validity 

After reserving the trade name, you will receive a payment permit. It’s important to pay the reservation fees within 72 hours; otherwise, the reservation may be cancelled. 

The trade name reservation is valid for 30 days to 90 days (depending on the jurisdiction). If you do not obtain a trade license and complete the business registration process within this period, the reserved name will be automatically cancelled. 

Costs Involved 

The cost of registering a trade name varies depending on the Emirate in which you are setting up your business and the specific Economic Department handling your case. The nature of the trade name you choose can also influence the cost. 

Reserving a trade name is a critical first step in establishing your business in the UAE. It ensures that your business has a unique identity and sets the stage for all future operations. By following the guidelines and completing the process efficiently, you can secure your business’s name and move forward with confidence in setting up your company in the UAE.