Corporate & Commercial
The New Trade Names Law: Key Differences from the Previous Law
The new Trade Names Law contributes to the regulation of procedures for reserving and registering trade names in the commercial register, enhances their commercial value, and ensures their protection along with associated rights.
Key Differences Between the New Trade Names Law and the Previous Law:
Language of the Trade Name
- Previous law: Did not permit the registration of a trade name in a non-Arabic language, or composed of letters or numbers.
- New law: Permits the trade name to be in a non-Arabic language or composed of letters or numbers.
Trade Name Standards
- Previous law: Prohibited name criteria were broad and unclear.
- New law: Establishes clear and specific criteria for trade names.
Procedural Aspects
- Previous law: Applications were submitted through the Ministry of Commerce’s digital platform and required supporting documents, including a reservation letter and power of attorney.
- New law: Applications are submitted via the Saudi Business Center without the need to provide additional documentation.
Disposition of the Trade Name
- Previous law: The trade name was linked to the establishment and could not be independently transferred under the previous law.
- New law: Allows the trade name to be transferred independently from the commercial establishment.
Fees and Service Charges
- Previous law: No service fees were imposed for trade name reservation.
- New law: Imposes service fees for trade name reservation as follows:
- Reservation of a trade name in Arabic: SAR 200.
- Reservation of a trade name in English: SAR 500.
Trade Name Registration
- Previous law: Permitted the registration of identical or similar trade names for existing entities if the business activity was different.
- New law: Prohibits the reservation or registration of a trade name for an existing entity, even if the business activity is different.
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