Saudi Arabia: SR50,000 fine for new trade name rule violations
Law bans religious, military, and political references in business names
Dubai: Saudi Arabia has introduced a new Trade Name Law prohibiting the use of religious, military and political references in business names as part of an effort to regulate commercial activities more tightly.
The Council of Ministers adopted the law and it was published in the official Umm Al Qura newspaper.
The law sets strict guidelines for trade names, barring any that include political, military or religious meanings or that resemble the names, symbols or honorary badges of organisations.
It also bans names that violate public order, morals or could mislead consumers.
Businesses are now required to adopt and register a trade name in the commercial registry. Failure to do so, or using a restricted name, will result in fines of up to SR50,000.
The law also prohibits trade names that resemble well-known global trademarks unless the applicant owns the rights to the name.
The new regulations simplify the naming process, allowing trade names to include Arabic, non-Arabic, Arabised words, or even numbers and letters.
Businesses can reserve a trade name before registration for a specific period, which can be extended.
Additionally, the law introduces the Arabic Language Experts Platform, designed to enhance the use of Arabic names in business.
It also allows merchants to register multiple business activities in the commercial registry without requiring them to be similar.
The Saudi Center for Economic Business has been tasked with exploring the creation of a unified economic platform for all business sectors, in coordination with the Ministry of Commerce, the Ministry of Investment, and the Saudi Authority for Intellectual Property.