Overview of the Saudi Trade Names Law
On March 27, 2025, corresponding to 27 Ramadan 1446, the Saudi Trade Names Law which was issued by Royal Decree No. (83/M) dated 19/3/1446 AH and published in the Official Gazette on 01/04/1446 AH corresponding to 4/10/2024 AD, shall enter into force 180 days after its publication. In this regard, the new Saudi Trade Names Law replaced the Trade Names Law which was issued by Royal Decree No. (15/M) dated 12/8/1420 AH.
The Trade Names Law aims to provide
confidence in the commercial environment, add flexibility and speed in transactions, and address cases of similarity between trade names while also expanding the scope of trade names to ensure transparency.
This Law includes 23 articles on general provisions, trade name provisions, trade name reservation and restriction, trade name cancellation and deletion, violations and penalties for violating the provisions of this law, and some final provisions.
The Saudi Trade Names Law also includes the definition of some terms, including the definition of trade name and merchant. The Trade Names Law defines a “trade name” as the name used by a merchant in conducting his/her business to distinguish them from other merchants, and a “merchant” is defined as any natural or legal person who meets the description of a trader according to the Commercial Law.
The Trade Names Law comes with several provisions,
most notably allowing the reservation of a trade name before its registration for a specific period that can be extended, specifying the conditions that must be met in the trade name to be registered or reserved, and the trade names that are prohibited from being reserved or registered in the commercial register.
The Trade Names Law also expanded the scope of registrable trade names by allowing the name to consist of letters or numbers or to be in a language other than Arabic, as well as allowing the trade name to be disposed of independently of the commercial establishment.
Moreover, the new Law sets clear and precise criteria for prohibited names, and prohibited the reservation or registration of a trade name for an existing establishment even if the activity is different.
In addition, in the context of enhancing the protection of trade names, the Trade Names Law prohibited the use of a trade name that is reserved or registered in the commercial register without the consent of its owner.
Finally, the Law specifies the violations and penalties, stipulating that whoever uses a trade name that is reserved or registered in violation of the provisions of this Law shall be fined not more than fifty thousand Saudi riyals, in addition to the possibility of warning the trader or obliging them to take the necessary steps to avoid a violation in the future or to take the necessary corrective steps to remedy the effects of the violation.
Therefore, the new Trade Names Law contributes to organizing the procedures for registering trade names in the commercial register, enhancing their value, and ensuring their protection and related rights, which in turn contributes to improving the commercial environment in the Kingdom of Saudi Arabia, enhancing transparency, and protecting the rights of traders.
To view the Saudi Trade Names Law, please visit the link
Complying with the new Saudi Commercial Names Regulation is a crucial step to protecting your business identity and avoiding legal disputes.
If you are an entrepreneur or planning to start a new business, choosing a compliant trade name and registering it correctly is essential. To ensure a smooth process, expert legal consultation can be invaluable.
At Shura Law Firm, we are here to support you every step of the way:
✔️ Verifying and reserving your trade name.
✔️ Registering your trade name in compliance with regulations.
✔️ Addressing any legal challenges you may encounter.
Contact us today to safeguard your trade name and establish your market presence with confidence.
📌 Walid Othman – Head of Investment & Transactions
📧 [email protected]
📌 Mahitab Agelan – Associate Lawyer
📧 [email protected]
