New Commercial Names and Records System
On April 3, 2025, the new trade name system in the Kingdom of Saudi Arabia entered into force, replacing the previous system issued in 1420 AH. There is no doubt that this system aims to enhance confidence in the commercial environment by regulating the procedures for reserving names and registering them in the commercial registry, and ensuring their protection and related rights.
Thinking of booking a brand name?
Contact the office of lawyer Abdul Majeed Al Rashid to ensure that the name is compatible with the new system and to protect your business from the beginning.
New Commercial Names and Records System
The most prominent features of the new system
The new system has many features, including the following:
Flexibility in brand name formation:
The system allows the trade name to be formed from:
• Arabic or Arabized words.
• Arabic letters or numbers.
• Words, letters or numbers in a language other than Arabic, with controls specified for this in the executive regulations.Independent disposition by trade name:
The system allows the merchant to dispose of the trade name independently of the commercial establishment, including transferring ownership of it, without it being linked to the establishment as it was in the previous system.
Trademark protection:
The system prohibits the reservation or registration of a trade name similar to a reserved or registered name in the commercial register, even if the activity differs, in order to protect the rights of owners of existing trade names. In accordance with the provisions of Article Six of the system.
What standards have been set to limit banned names?
The system sets precise criteria for prohibited names, including names that:
Violates public order or public morals.
Leads to misinformation.
Similarity of reserved or restricted trade names, or world-famous brands.
How long does it take to reserve a trade name?
The period for reserving a trade name shall be 60 days from the date of acceptance of the application, with the possibility of extending it for a similar period before its expiration. The reserved name may not be used or disposed of until it is registered in the commercial register.
How can I reserve a trade name?
The trade name can be reserved through the Saudi Business Center platform, without the need to visit service centers, by following the following steps:
Go to the Ministry of Commerce website, and choose the service “Book a trade name” via this link.
Log in using your National Unified Access Account.
Data entry: Choose reservation type and trade name language – Enter up to 5 suggested trade names.
Review and submit the application: Review the application summary, amend the names if necessary, then approve the declaration and submit the application.
Processing and Payment: After approval by the Ministry of Commerce, the invoice is issued and paid through the central payments system.
Order Completion: After payment, the trade name is published and the order status is changed to “Completed” – The order can be printed or modified in case of return or rejection.
What are the fees for the trade name reservation service?
Service fees are as follows:
200 Saudi riyals to reserve a trade name in Arabic.
500 Saudi riyals. Book a trade name in English.
Can a trade name reservation be cancelled?
Yes, the registrar may cancel – on his own initiative or upon an interested request – the reservation of the trade name in either of the following two cases:
If it violates public order or morals, leads to misinformation, or its use is prohibited based on the relevant regulatory provisions.
The reservation period has expired without extension.
The registrar shall notify the person whose trade name reservation has been cancelled in accordance with what is specified in the regulations.
What are the steps to cancel a trade name reservation?
The trade name reservation is cancelled through the Saudi Business Center platform, by following the following steps:
Access to the platform: via the unified national access through the Saudi Business Center platform.
Select Service: From “General Services” > “Manage Reserved Trade Names” > “Cancel Trade Name”.
Check Name Status: Trade name status must be “unused” to be cancelled.
Agree to the Terms: View and agree to the Terms and Conditions.
Enter a reason for cancellation: Enter a clear reason for canceling the trade name.
Review and submit the application: View the application summary, confirm the procedure, and then submit the application.
Complete cancellation: The order is executed directly, and the name status is updated in the “My Orders” list.
Note that the service is free, and no fees are charged for canceling the trade name.
What penalties does the system specify for those who violate the provisions of the trade names system?
Anyone who: shall be punished with a fine not exceeding 50,000 riyals
Use a trade name reserved or restricted to him in violation of the provisions of the system.
He did not comply with the provisions of the system related to trade name protection.
The fine may be doubled in the event of repetition. Repeated commission of the same violation proven shall be a final decision within (three) years from the date of issuance of the decision. The severity of the violation, its circumstances, conditions, effects, and the size of the facility are also taken into account in determining the amount of the fine. The regulations specify a table for classifying violations.
Finally
The new trade names system is an important step towards enhancing the commercial environment in the Kingdom, by regulating the procedures for reserving and registering trade names, and providing legal protection for them, in line with the goals of the Kingdom’s Vision 2030.
New Commercial Names and Records System
Frequently asked questions about the new brand name system
What are the goals of the new brand name system?
The system aims to enhance confidence in the commercial environment by regulating the procedures for reserving trade names and registering them in the commercial registry, enhancing their value, and ensuring their protection.
Can I reserve a trade name?
Yes, the trade name may be reserved for a temporary period with the registrar (60 days) without being registered in the commercial register. Until the commercial register is issued.The name reservation may be extended for another (60) days before its expiration.
Is it possible to reserve a trade name in a foreign language other than English?
No, a trade name cannot be reserved in a foreign language other than English.
How long does it take to accept or register a trade name reservation request?
The registrar shall decide on the application that meets the required data within (ten) days from the date of submitting the reservation application.
Can the trade name be modified?
Yes, a merchant registered in the commercial registry may amend his trade name after fulfilling the conditions and procedures stipulated in the system and regulations. The amendment shall be effective from the date of his registration in the commercial registry, without prejudice to the rights and obligations that arose prior to its amendment.
What are the cases of cancellation of the trade name registration?
The registrar shall cancel – on his own initiative or upon an interested request – the trade name registration, in any of the following cases:
If it violates public order or morals, leads to misinformation, or its use is prohibited based on the relevant regulatory provisions.
If a final decision or ruling is issued to cancel it.
If the registration in the commercial register is deleted.
The registrar shall be notified of the cancellation of his trade name registration in accordance with what is specified in the regulations.
Is it possible to file a grievance if the trade name is rejected?
Yes, you can file a grievance through the ‘Objection to Refusal to Reserve a Trade Name‘ service within a maximum period of 60 days from the date of rejection, and the objection will be decided within 30 days.
Can ownership of a trade name previously registered on the registry be transferred?
Yes, ownership of the restricted trade name can be transferred with the store.
Is there a maximum number of brand names that can be reserved?
Yes, the customer can reserve five brand names. Maximum.
What is the deadline for correcting commercial records?
Those registered in the commercial registry are given a period of 5 years starting from the effective date of the system to correct the status of their subsidiary commercial registries. All their subsidiary records shall be deleted at the end of that period in accordance with a mechanism determined by the Ministry of Commerce.
What are the effects of transferring ownership of a trade name with a store?
Article One stipulates that “the rights and obligations previously arranged under this name shall be transferred to the person to whom the trade name is attributed with the store, unless otherwise agreed.”
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