Saudi Arabia’s new commercial registration and trade name laws

published on 15 October 2024 | reading time approx. 2 minutes

Saudi Arabia has introduced new regulations for commercial registration and trade names. The laws were passed in September 2024 and will come into force 180 days after their publication and apply to all companies in the country. The aim is to make business procedures more transparent and simplify processes.

Simplified commercial registration system

A key change in the new Commercial Registration Law is the move to a single national registration for businesses. Instead of needing separate registrations for each branch, companies will now have one registration that covers all their operations across the country. Additionally, a new electronic database will help speed up the registration process. Although registrations will not expire, businesses must confirm their operational status each year to keep their registration active. If a company stops operating, its registration will be canceled after one year, instead of the previous 30-day period.

To handle violations, the new law also introduces alternatives to financial penalties, such as warnings and corrective measures.

New flexibility for trade names

The Trade Names Law also brings important updates. Businesses can now use non-Arabic names, providing more flexibility in how companies brand themselves. Trade names can be transferred separately from the business itself, making it easier to manage them. The law also includes rules for reserving and registering names, and it protects businesses by prohibiting others from using their reserved or registered names without permission.

A step towards better business practices

These new laws are part of Saudi Arabia’s efforts to improve the business environment, making it easier to start and run companies. The changes make the registration process easier and provide stronger protection for trade names. They also give companies more flexibility in managing their legal requirements.

With these reforms, Saudi Arabia is moving towards a more efficient and business-friendly system. Businesses are encouraged to review the new rules and ensure they are in compliance as the laws come into effect.