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Saudi Arabia Introduces New Laws for Commercial Registration and Trade Names

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Saudi Arabia has enacted new regulations for commercial registration and trade names. These laws apply to all companies in the country, aiming to enhance transparency and simplify business procedures.

  • The New Commercial Registration Law introduces a single national registration for businesses, eliminating the need for separate registrations for each branch. An electronic database will expedite the process. Registrations won't expire, but businesses must annually confirm their operational status. If a company ceases operations, its registration will be canceled after one year. Violations of the Commercial Registration Law can be managed through alternative procedures like warnings and corrective actions. These measures can be used either in place of or in conjunction with financial penalties to address non-compliance.
  • The updated Trade Names Law allows businesses to use non-Arabic names, offering greater branding flexibility. Trade names can now be transferred independently from the business, simplifying management. The Law includes provisions for reserving and registering names and protects businesses by prohibiting unauthorized use of their reserved or registered names.

Saudi Arabia has implemented new laws to enhance the business environment, simplifying company registration, strengthening trade name protection, and increasing flexibility in legal compliance. These changes aim to create a more effective and business centric framework that promotes growth and development, encouraging businesses to comply with the updated regulations.

Pascale Dona
By Pascale Dona
Senior Legal Editor

Pascale Dona joined Thomson Reuters in 2014 as Content Specialist. In 2007, Pascale graduated from the Lebanese University with a Bachelor’s Degree in Law, then moved to France and completed her Master’s degree in International Law from Nice Sophia Antipolis University. Pascale has more than 10 years of experience as legal Specialist in Lebanon and UAE. She is a native Arabic speaker and proficient in English and French.

Pascale is currently a Senior Legal Editor for Thomson Reuters MENA. She is based in Dubai and is responsible for maintaining and providing the latest legal content for the MENA region.

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