The Law of Commercial Registration in Saudi Arabia has been updated to streamline the process for businesses operating in the Kingdom. According to Minister of Commerce Dr. Majed Al-Qasabi, one commercial registration is now sufficient for a firm to operate throughout the country. The new law, consisting of 29 articles, aims to make it easier for businesses by organizing registration procedures, ensuring accurate data, and creating a central electronic database for traders. This central database will contain all necessary information and eliminate the need for multiple sub-registrations for companies and establishments, reducing financial burdens on businesses in the process.
Additionally, the law introduces a grace period of five years for existing sub-registrations to be corrected, by transferring them to a main register or revoking them. Businesses are now required to open bank accounts linked to their establishment to enhance reliability and transaction integrity. The law also eliminates the need for renewing commercial registrations and introduces an annual confirmation of registration data, with penalties for non-compliance. These new procedures aim to simplify the registration process for businesses and ensure the accuracy and consistency of data in the system.
The Law of Trade Names, which consists of 23 articles, has also been introduced to protect and maximize the value of trade names in commercial registrations. The law allows for the reservation of trade names before registration for a specific period, with the option to extend this period. It also specifies conditions for registering or reserving trade names, prohibits certain names, and allows for naming in Arabic, non-Arabic, or Arabized words, letters, or numbers. Additionally, the law establishes the Arabic Language Experts Platform to increase the use of Arabic names in businesses.
The law also prohibits the use of reserved or registered trade names without consent, and requires that trade names be appropriate and non-misleading. It is also forbidden to register a trade name that is similar to another establishment, even if the activities are different. These measures are put in place to protect the rights of business owners and ensure fair competition in the market. Overall, the Law of Trade Names aims to enhance the protection and value of trade names in the commercial environment in Saudi Arabia.
In conclusion, the recent updates to the Law of Commercial Registration and the Law of Trade Names in Saudi Arabia aim to create a more streamlined and efficient registration process for businesses operating in the Kingdom. These laws are in line with the economic and technological advancements happening in the country, as well as the goals of the Saudi Vision 2030. By simplifying registration procedures, ensuring accurate data, and protecting trade names, these laws will contribute to facilitating business practices and reducing burdens on commercial establishments. Businesses are now required to comply with the new regulations, including opening bank accounts linked to their establishment and confirming registration data annually, to avoid penalties and ensure smooth operations. Overall, these laws are designed to promote a more business-friendly environment in Saudi Arabia and support the growth and development of the economy.
