Saudi Arabia Cabinet Decision No. 237/1446 on the Approval of the Commercial Register and Trade Name Laws, which was published on 4 October 2024, took effect in January 2025. The new Saudi trade name law establishes clearer rules for the registration and protection of trade names, which are critical for distinguishing businesses in the marketplace.

Registration and Composition of Trade Names

Under the new framework, businesses must register their trade names with the Ministry of Commerce through the Commercial Register. The law also allows for temporary reservations of trade names, providing flexibility for businesses in the early stages of their operations.

Trade names can be composed of:

• The business owner’s name;
• A distinctive name; or
• A combination of the above.

Names can include Arabic words, transliterated Arabic elements, letters, numbers, or even foreign language terms, provided they comply with specific rules set by the Saudi Ministry of Commerce. However, names that mislead the public or conflict with public order, morality, or existing legal provisions are prohibited.

Protection of Trade Names

Registered trade names are shielded against unauthorised use. Subject to other applicable legislation, the Trade Name Law grants exclusive rights to the owner, including the ability to seek compensation before the local courts. Importantly, the law prohibits the registration of names that are identical or similar to famous trade marks and trade names and registered trade marks or trade names to minimise consumer confusion.

Administrative Measures and Enforcement

Applications for trade name registration are reviewed within ten days, subject to extensions, ensuring a swift and transparent process. Application rejections must include detailed reasons, and applicants have the right to appeal the decision before the Ministry within 60 days, with the possibility of further appeal before the court within 30 days.

The law also introduces stringent penalties for violations. Businesses found guilty of misusing trade names or failing to adhere to the new regulations may face fines of up to USD 13,300. Repeat offenders may incur double penalties. The Ministry is authorised to appoint inspectors to enforce compliance and address violations effectively.

Amendments, Transfers, and Display Requirements

The law allows for amendments to registered trade names, provided that prior obligations and rights are respected. Trade names can also be transferred independently of the business, subject to proper registration and notification. Businesses must prominently display their registered trade names at their premises and on, “documents, correspondence and publications”.

Broader Impact

As the implementation date approaches, businesses are advised to familiarise themselves with the law’s provisions to ensure compliance and capitalise on the opportunities the new law provides. The Ministry of Commerce will release additional guidelines to clarify specific procedures and address practical considerations.

This new law represents a significant step forward in Saudi Arabia’s broader economic reforms, fostering a competitive and transparent marketplace for local and international businesses alike.

This article first appeared in WTR Daily, part of World Trademark Review, in December 2025. For further information, please go to www.worldtrademarkreview.com.