Reserving a trade name in Dubai is one of the first and most important steps when setting up a business. The Dubai Department of Economic Development (DED) has strict regulations to ensure that all business names are unique, appropriate, and legally compliant. However, many entrepreneurs make mistakes during the trade name reservation process, leading to delays or rejections.
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To ensure a smooth trade name approval, it’s crucial to be aware of common mistakes and how to avoid them.
1. Choosing a Trade Name That Already Exists
One of the most common reasons for rejection is selecting a name that is already registered by another business. The DED does not allow duplicate trade names, even if they are in different industries.
How to avoid this mistake:
Use the DED eServices portal (https://ded.ae) to check for trade name availability before applying.
Consider slight variations or alternatives if your preferred name is taken.
Avoid adding generic terms like "Trading" or "Services" to differentiate your name, as this may still lead to rejection.
2. Using Restricted or Prohibited Words
The DED has strict naming guidelines to ensure that trade names do not include offensive, religious, or political terms. Names that refer to government entities, famous brands, or misleading descriptions are also prohibited.
Examples of restricted words:
Profane or offensive words.
Religious words like “Islamic” or “Christian” without special approval.
Political words or references to government bodies.
Well-known brand names unless authorized (e.g., "Apple Electronics" without permission).
How to avoid this mistake:
Review the DED trade name guidelines before choosing a name.
If using a foreign brand name, obtain written authorization from the brand owner.
If in doubt, consult a DED service center near you for guidance.
3. Selecting a Trade Name That Does Not Match Business Activities
Your trade name must reflect your business activities. The DED requires that the name should align with the company’s nature of work.
Examples of incorrect trade names:
"XYZ Construction" for a company that offers IT services.
"ABC Restaurant" for a general trading company.
How to avoid this mistake:
Choose a trade name that clearly indicates your business type.
If using a general name, ensure it does not mislead customers.
If required, add your main activity (e.g., "Global IT Solutions" instead of just "Global").
4. Not Choosing the Right Trade Name Language
Trade names in Dubai can be registered in Arabic or English, but certain rules apply:
Arabic names are preferred and often cost less.
Foreign (non-Arabic) names may have higher fees and require translation approval.
If using a translated Arabic name, it should match the English version phonetically.
How to avoid this mistake:
If you choose a foreign name, ensure it is spelled correctly.
If using an Arabic name, ensure the pronunciation is correct.
Get assistance from a DED-approved translator if necessary.
5. Forgetting to Renew the Trade Name Reservation
Once a trade name is approved, it is only reserved for 30 days. Many entrepreneurs forget to renew it, causing the name to become available to others.
How to avoid this mistake:
Keep track of the reservation date.
If needed, renew the reservation before it expires (additional fees apply).
Complete the business registration process within the 30-day period.
6. Failing to Include the Required Business Structure in the Trade Name
Your business structure affects the naming format. For example:
LLC companies must include "LLC" in the trade name.
Sole proprietorships can include the owner’s full name.
Branch offices must use the parent company’s name.
How to avoid this mistake:
Ensure the correct suffix is added (e.g., "ABC Trading LLC" instead of just "ABC Trading").
Check with the DED if your business structure has specific naming rules.
7. Not Paying the Correct Trade Name Fees
Trade name reservation fees in Dubai vary based on the name type:
|
Trade Name Type |
Fees (AED) |
|
Standard Trade Name |
620 |
|
Arabic Trade Name |
620 |
|
Foreign (Non-Arabic) Trade Name |
1,000 |
|
Trade Name with LLC Suffix |
2,000 |
|
Premium/Exclusive Trade Name |
Up to 10,000 |
Many applicants fail to pay the correct fee, leading to delays in approval.
How to avoid this mistake:
Check the DED trade name fee structure before applying.
If selecting a premium or exclusive name, be prepared for higher costs.
Make sure to complete the payment online or at a DED service center.
8. Submitting Incomplete or Incorrect Information
Any errors in the trade name application can lead to rejection or delays. Common mistakes include:
Spelling mistakes in the trade name.
Incorrect owner details.
Missing Emirates ID or passport copy.
How to avoid this mistake:
Double-check all information before submitting the application.
Ensure that owner details match official documents.
If applying online, upload clear scanned copies of all required documents.
9. Not Consulting a Business Setup Expert
Many entrepreneurs struggle with the trade name reservation process because they are unfamiliar with the regulations. This can lead to multiple rejections and wasted time.
How to avoid this mistake:
Consult a DED-approved business consultant for assistance.
Visit a DED service center near you for guidance.
If unsure about the process, use a business setup service to handle the reservation.
10. Ignoring Trade Name Modification or Cancellation Rules
If your business plans change, you may need to modify or cancel your trade name. Some entrepreneurs fail to do this correctly, leading to penalties.
How to modify or cancel a trade name:
Submit a request through DED online services or a DED service center.
Pay the required modification or cancellation fee.
Ensure the new name follows DED guidelines.
Conclusion
Reserving a trade name in Dubai requires careful planning and adherence to DED regulations. Avoiding common mistakes can save time, money, and frustration during the business setup process.
Key takeaways to ensure smooth approval:
Check name availability before applying.
Follow DED naming rules and avoid restricted words.
Match the name with your business activities.
Pay the correct trade name reservation fee.
Complete the business registration within 30 days.
By understanding and avoiding these common errors, you can successfully reserve your trade name and move forward with your business setup in Dubai.