How To Register A Trade Name In Saudi Arabia

How To Register A Trade Name In Saudi Arabia

Saudi Arabia has taken steps in the direction of development with the announcement of Saudi Vision 2030. This campaign's main agenda is to shift the focus of revenue generation from oil to multiple other sources. Vision 2030 has successfully attracted the minds of investors towards the Kingdom.

Investment via the creation of a company to carry out business activities in Saudi Arabia is a good plan. Apart from the incorporation process, there are lots of other legal compliances and regulations that must be obeyed.

One such regulation is the creation and registration of a trade name  for any company setting up business in Saudi Arabia. A trade name must be created keeping in mind the guidelines and regulations as mentioned in the governing Law. We will get to that later; first, let's understand what a trade name is.

What is Trade Name?

A trade name is a registered and official name that a sole proprietor or company uses to conduct business. A trade name is also known as doing business as (DBA). Registration of a trade name is one of the most vital steps for branding a company.

The government of Saudi Arabia has mandated the registration of a trade name. An investor wanting to conduct business in Saudi Arabia has to compulsorily abide by the rules and regulations and register a trade name.

Rules and Regulations for Registering a Trade Name

The Commercial Names Law states and regulates all the rules regarding the trade names in Saudi Arabia. It comprehensively mentions and states all the rules and regulations pertaining to trade names in the Kingdom.

These processes can be quite complicated, so it is always recommended to take the help of an advisor to get through the whole registration process without much burden. These services could range from documentation and accounting and bookkeeping in Saudi Arabia, banking services, etc.

Here's how to go about registering a trade name in Saudi Arabia:-

  1. Application for registration of a trade name should be submitted to the Commercial Register Office. If more than one merchant or company is trying to register the same trade name, then the priority will be given to the applicant who applied first.
  2. If the application for registration of the name is approved, then it will be published according to the manner specified in the implementing regulations.
  3. Once the registration is completed, no other company or merchant in Saudi Arabia will be able to operate under the same trade name. If the application contains a name that has already been registered, then the merchant or company will have to add to the name something that will distinguish it from the name already registered. 
  4. The merchant or a company must display his trade name clearly in front of the place of business as well as all the printed materials belonging to the organization.
  5. The trade name is tied to a person or legal entity; disposing or transferring the business place will not mean the transfer of the trade name's rights. To transfer the trade name in a valid manner, the person owning the trade name must display his content on a document and transfer the ownership to someone else.
  6. Suppose the trade name is used by the owner of the trade name or anyone else other than the owner in a way that violates the Law. In that case, the concerned party can request the Minister of Commerce to prevent its use or strike it off in the Commercial Register if already registered. They can also resort to the Board of Grievances for compensation if necessary. 
  7. Anyone found using a trade name contrary to the provisions of Law is liable to be punished with a fine that may not exceed fifty thousand riyals. The penalty can be doubled if a merchant or company is found committing the same offense again.

We can deduce that a trade name is of massive importance. After registration of a company in Saudi Arabia, the organisation must go through the process of registering the trade name in the register.

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How long does it take to review the trademark in Saudi Arabia?

7 working days.

How long is the trademark valid in Saudi Arabia?

10 years.

What is the cost of the publication of a trademark in Saudi Arabia?

1575 SAR.

.Is it possible to register a trademark in Saudi Arabia online?

Yes, through the government website.

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