Trade Names Law

Purpose and scope

• Aims to build trust in the business environment by regulating the reservation and registration of trade names in the commercial register and protecting them (Article 2).
• It replaced the previous Trade Names Law of 1420H (Article 23).

Key rules, rights and obligations

• Every trader must adopt a trade name and register it in the commercial register; a name may be reserved temporarily before registration (Article 3).
• A trade name is taken from the trader's personal name, a distinctive name, or both (Article 4).
• No one else may use a reserved or registered name, and its owner may claim compensation for harm (Article 6).
• Names contrary to public order or morals, misleading, or similar to a reserved or registered trade name, among others listed, may not be reserved or registered (Article 7).
• The trade name must be displayed at the place of business and on all documents, correspondence and printed material (Article 8).
• A trade name may be disposed of separately from the business (Article 10); if transferred with the business, the related rights and obligations pass unless agreed otherwise, and the old and new owners remain jointly liable to creditors (Article 11).

Violations, penalties and common problems

• Using a trade name in breach of the law, or failing to register or display it: a fine of up to SAR 50,000 (Article 14).
• The violations committee may warn the trader or order steps to prevent repetition, instead of or in addition to the fine (Article 17).
• Common problems: choosing a name similar to a competitor's, and buying a business with its name without checking the related debts.

Procedures and key deadlines

• The registrar decides a complete reservation or registration request within ten days, extendable in cases set by the regulation (Article 5).
• Decisions under the law may be challenged before the competent court within thirty days of notification (Article 18).
• Check that the name is available and does not conflict with a registered trademark before reserving it.

An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.