The Law of Trade Names in the Kingdom of Saudi Arabia consists of legal rules governing the trade names of companies and institutions listed in the commercial registers within the Kingdom. It outlines the criteria for selecting an establishment's trade name, the procedures for its registration, and the entity responsible for reviewing trade name registration requests.
Date of issuance of the Law of Trade Names in Saudi Arabia
The Law of Trade Names was issued in 1999, comprising twenty articles. The Implementing Regulations were also issued in the same year.
Characteristics of the Law of Trade Names in Saudi Arabia
The Law of Trade Names in the Kingdom outlines the requirements for registering trade names for merchants seeking to register their establishments in the commercial register. It specifies the procedures and conditions for registration, exclusively reserving Arabic names for the commercial registers, as Arabic is the official language of the Kingdom, in accordance with the Basic Law of Governance. The law emphasizes that trade names must be clear, easily understood, and reflective of the merchant’s commercial activity, to help consumers and business partners easily identify the nature of the merchant’s operations.
The Law of Trade Names emphasized clarity and transparency in its provisions, considering the advancements and innovations in merchants' work. It aimed to clearly outline each action taken by merchants, ensuring their efforts are protected and helping them avoid violations and penalties that could lead to restrictions on their business, license cancellation, or financial losses.
Components of the trade name as per the Law of Trade Names
Article Two of the Law of Trade Names stipulates that the trade name must consist of Arabic or Arabized words, and may not include foreign words, excepted from this provision are: names of foreign companies registered abroad, companies with well-known international names, and companies of mixed capital, to be specified by a decision issued by the Minister of Commerce.
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