The Saudi Cabinet has recently approved a new set of regulations concerning the registration and management of trade names, which aims to enhance transparency and reliability in the business environment. These regulations, published in Official Gazette No. 5050 on October 4, 2024, will become effective 180 calendar days after the publication date and introduce significant updates to the existing framework for commercial registry and trade names. 

Under the new rules, every business must adopt a unique trade name and register it with the Commercial Registry. The system now facilitates both the temporary reservation of trade names and their full registration, providing business owners flexibility during the early stages of business establishment. 

Key Highlights of the New Regulations: 

  • Mandatory Registration: All merchants are now required to register their trade names in the Commercial Registry. Failure to do so will result in penalties. 
  • Enhanced Name Protection: Trade names once registered are legally protected, preventing unauthorized use by others. Businesses can now seek compensation if their registered name is misused by another entity. 
  • Restrictions on Certain Names: The regulations prohibit the registration of misleading, offensive, or politically sensitive names. Additionally, names similar to well-known trademarks or those with significant international standing cannot be registered without proper ownership. 
  • Administrative Process: Applications for trade name registration must now be processed within ten days, allowing for faster administrative procedures and giving businesses the ability to operate under their chosen name more swiftly. 
  • Public Transparency: Registered trade names must be clearly displayed at the business premises and on all official documentation. The system allows public access to basic trade name information, enhancing transparency within the business community. 

Compliance and Penalties 

Businesses must ensure they register their trade names to comply with these new regulations. Non-compliance could result in fines of up to SAR 50,000 (approximately USD 13,300). The system also introduces a mechanism for correcting trade name registration errors and addressing disputes regarding name usage. 

This legislative update underscores the government’s commitment to streamlining business practices, fostering trust in the marketplace, and safeguarding intellectual property rights across the Kingdom. 

For more information or assistance with trade name registration in Saudi Arabia, feel free to contact Saba IP at  news@sabaip.com.