Updated Commercial Registration and Trade Names laws go into effect on Thursday
- Ayda Salem
- Apr 4
- 2 min read
RIYADH April 4, 2025 — The Ministry of Commerce announced that the new Law of Commercial Registration and the Law of Trade Names, along with their executive regulations, came into effect on Thursday, April 3. These laws, approved by the Council of Ministers on September 17, 2024, are designed to align with the Kingdom’s economic and technological developments and support the ongoing transformation under Saudi Vision 2030.
The Law of Commercial Registration, consisting of 29 articles, simplifies business operations by eliminating the need for sub-registrations for companies and establishments. Instead, a single commercial register is now sufficient at the national level, encompassing all business activities and reducing financial burdens on companies.
This law offers a five-year grace period for businesses to correct existing sub-registrations, either by transferring them to the main register or by consolidating them with a new company. It also mandates that commercial establishments open bank accounts linked to their business for greater transaction transparency. A new annual electronic confirmation process has replaced the previous renewal system, with strict penalties for non-compliance, including registration suspension and deletion if data is not confirmed within the specified timeframe.
Furthermore, businesses must link their bank accounts to their commercial registrations and obtain activity licenses within 90 days of registration, unless extended by licensing authorities.
The Law of Trade Names and its regulations aim to improve confidence in the commercial sector by governing the reservation and registration of trade names. The law allows for trade name reservation before registration, with specified, extendable periods, and permits independent transfer or disposal of trade names separate from the business itself. It also prohibits the registration of similar trade names to protect brand identity, and establishes rules for reserving names related to family names, personal names, and public places in Saudi Arabia.
The law also provides for the use of Arabic, non-Arabic, or Arabized words, and alphanumeric names for commercial entities. An Arabic Language Experts Platform has been created to help expand the use of Arabic names in the business environment. The new law allows for the independent transfer of trade names, improving their protection, and prohibits using a reserved or registered trade name without the owner’s consent. These changes aim to modernize business practices, increase transparency, and support the strategic goals of Saudi Vision 2030.
