The new Saudi Trade Name Law, recently adopted by the Council of Ministers, aims to regulate the use of trade names in the Kingdom. The law prohibits the use of trade names with religious, military, or political connotations. Merchants are required to adopt a trade name and register it in the commercial register, with fines of up to SR50000 imposed on those who do not comply. The law also prohibits the use of trade names that violate public order or moral standards, or that could be misleading.
The law consists of 23 articles, outlining the specific regulations regarding the reservation and registration of trade names. It prohibits the use of names resembling those of local, regional, or international organizations, as well as famous trademarks. The aim of the law is to maximize the value of trade names, protect their rights, and ensure their proper registration. It also allows for the reservation of trade names before registration, with the possibility of extension, and specifies the conditions that must be met for registration.
To promote the use of Arabic language in trade names, the law has established the Arabic Language Experts Platform. This platform aims to increase the linguistic diversity of Arabic names in the commercial sector. Additionally, the new Commercial Registration Law allows merchants to register multiple activities without requiring them to be homogenous. However, fines of up to SR50000 can be imposed on those who provide incorrect data during registration.
The Saudi Center for Economic Business has been granted the authority to consider the establishment of a comprehensive economic platform that caters to all business sectors in the Kingdom. This initiative is in coordination with the Ministry of Commerce, the Ministry of Investment, and the Saudi Authority for Intellectual Property. The goal is to create a unified platform that supports and enhances the various business sectors in Saudi Arabia.
Overall, the new Trade Name Law in Saudi Arabia aims to standardize and regulate the use of trade names in the commercial sector. By prohibiting names with political, military, or religious connotations and promoting the use of Arabic language, the law seeks to protect the value and integrity of trade names. Merchants are required to register their trade names in the commercial register and comply with the regulations outlined in the law. Failure to do so may result in fines imposed by the authorities.
