Changing Company Legal Name in UAE - Here’s What You Should Know

Re-branding happens often in companies. When they feel they need to upgrade to meet the changing market and customer interests, they often step up with a rebranding. Along with changing their corporate identity, companies sometimes decide to change their name as well. Problems could be related to trademark issues, expanded services, difficulty in pronouncing the name or some other reason as well. It is always good to evaluate your company’s brand identity and revamp it whenever necessary. The market is changing and so should your company and its branding and services.

Many are clueless about the procedures related to changing company legal names in the UAE. With the right guidance and formalities, the process can be easy. If you are one such company, here are the things you should do to change the company's legal name in UAE.

In order to change a company's legal name in the UAE, one needs to undergo two procedures. One is to get the DED’S initial approval and the second is to follow that approval.

Initial Approval: Steps and Formalities

  1. The first step is to obtain an application form to change the name of the company. It can easily be downloaded online.
  2. Produce proof of the trade name that’s registered and reserved
  3. Carry the original of the license obtained at the time of registration from the Commercial Register as well as its copies.
  4. One should also produce an undertaking which also can be downloaded online to declare that he/she will honor any liability under the existing company.
  5. Before moving to further steps, one should give advertisements in the newspaper showing the name change. It is mandatory to give it in two languages;  English and Arabic. And should also carry it as proof to gather the approval.

Also Read: What is Ejari? How can we Register for Ejari?

The cost of the procedures can vary based on the type of company you own etc. But to take an approximate count, it might cost up to AED 2000 for the services and AED 500 for the Amended License. Following the initial approval, it is the local authorities’ turn now. They will issue amended Articles and Memorandum of Association when the company register is updated.

What Are Few Reasons to Change the Company Name?

1. Difficult spelling - the whole purpose of having a name is to maintain an identity. People should remember the company name and should be able to recollect it. But if the name is too complex or too difficult to remember, then it’s a red flag. You might want to start thinking about changing the company name to an easier one. The easier the name, the easier to remember it.

2. The old name is not up to the mark: The name of the company should reflect the company’s services. Suppose you are running a coffee shop and you added ‘coffee’ to the company name. But later you started serving meals there and now the name is not reflective of the services anymore. In situations like this, a name change is a must

3. Trademark issues: no two companies can operate under the same name that is for sure. In some cases, another company intentionally or non-intentionally may take up the name of another company. It may not always be a case of plagiarism or copying. Rather it could just have been accidental. However, it is enough to get the customers confused especially if both the companies are operating in the same sector. And if anyone company falls into a case of fraud or happens to have a tainted image, unfortunately, it can easily affect the other company as well. In such cases, one company might receive a notice to stop operating under that company name and change to another one.

4. Not helping you stand out: if your company name is not helping you to stand out, then it’s high time you change it. Competition is stiffening with every passing day. It is more and more important to stand out in the market both real and virtual. You should check if your brand identity suits the online market and whether it can attract customers to it. If not, changing a name and branding identity can be a game-changer.

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