Dear Esteemed Associates and Clients,
We strive to keep you updated on significant changes in the jurisdictions we cover. Here’s the latest regarding trade name regulations in Saudi Arabia.
Saudi Arabia: New Trade Name Regulations Announced
The Saudi Cabinet has introduced a new set of directives aimed at improving the registration and management of trade names. Published in Official Gazette No. 5050 on October 4, 2024, these regulations will come into effect 180 days later and represent a major overhaul of the current commercial registry and trade name processes.
The primary objectives of these new regulations are to enhance transparency and create a more reliable business environment. Key changes include:
- Mandatory Trade Name Registration: All businesses must select a unique trade name and register it with the Commercial Registry. Businesses that do not comply may face penalties as stipulated in the regulations.
- Transparency Enhancements: Registered trade names must be clearly displayed at business locations and on all official documents. The regulations also allow public access to key information about trade names, promoting transparency within the business community.
- Stronger Name Protection: Businesses will now have legal protection for their registered trade names against unauthorized use. This enables companies to take action if their names are infringed upon.
Compliance and Penalties
It is crucial for businesses to adhere to these new regulations by registering their trade names promptly. Failure to do so may result in fines of up to SAR 50,000. The new system also includes mechanisms for correcting registration mistakes and resolving disputes related to trade name use.
This legislative update underscores the government’s dedication to enhancing business practices, fostering trust in the market, and protecting intellectual property rights across the Kingdom.
We encourage all clients to review their trade name registrations to ensure they comply with these new requirements. If you have any questions or need assistance, please feel free to reach out to ksa@alyafi-ip.com.
Thank you for your continued partnership.
