Commercial Registration Law and Trade Names Law

Minister of Commerce Dr. Majed Al-Qasabi confirmed that one commercial registration is sufficient for a firm throughout Saudi Arabia. "The Law of Commercial Registration and the Law of Trade Names, approved by the Council of Ministers, will contribute to facilitating business operations and reducing burdens on commercial establishments in the Kingdom," Al-Qasabi said.

Key Features of the New Law

In a statement to the Saudi Press Agency, Al-Qasabi outlined the key features of the two laws and their role in facilitating business practices in the Kingdom. These laws align with the economic and technological advancements, as well as the unprecedented transformation the Kingdom is undergoing under Saudi Vision 2030.

Commercial Registration Procedures

The minister explained that the Law of Commercial Registration, consisting of 29 articles, helps facilitate business operations by organizing registration procedures, ensuring the accuracy of registered data, updating it periodically, and making it easily accessible for searches. The law also establishes a central electronic database for recording traders’ names and data, and outlines procedures for commercial registration.

Cancellation of Sub-Registrations

The law eliminates the issuance of sub-registrations for companies and establishments, making one commercial registration at the Kingdom level sufficient, covering all activities of the business. This reduces financial burdens on firms.

Key Amendments

The new law grants a five-year grace period to correct existing sub-registrations and eliminates the requirement for annual renewal of commercial registration. Instead, businesses are required to confirm their registration data annually.

Trade Names Law

The Trade Names Law, consisting of 23 articles, regulates the procedures for reserving and registering trade names, maximizing their value, and protecting related rights. It allows for the registration of Arabic, non-Arabic, or Arabized words, or names using numbers or letters.

Enhancing Arabic Content

The new law created the Arabic Language Experts Platform, aimed at enriching the stock of Arabic trade names in the commercial environment. It also allows for the independent disposal of a trade name from the business entity.