A trade name is very useful since it protects your name in the region and sector you operate in. You do not need to register it, so you do not have to pay costs like registration fees, renewal fees, etc. Your trade name helps you stand out from other companies and can be beneficial when building up your reputation and becoming known in a region. Another company cannot use the same name or a similar name that would create confusion within the territory and sector your trade name is known. Last but not least, unlike trademarks your trade name can be descriptive (see the smart guide on trademarks).