1 
 
The Law of Trade Names  
Article 1:  
Every merchant must have a trade name to be recorded in the Commercial Register. This name shall consist 
of his name as recorded in the Civil Register, a novel appellation or both. It may include data relating to the 
type of commercial activity. In all cases the name must be suitable, not misleading, nor inconsistent with 
Islamic Shari ‘ah or public interest .  
Article  2: 
Subject to the provision s of the Companies’ Law, the name of the company shall be its trade name and may 
include a novel appellation or data relating to the type of commerce in which the company is engaged . 
Article  3: 
The trade name shall consist of Arabic or Arabized words, and may not include foreign words, exception 
from this provision are: names of foreign companies registered abroad, companies with well -known 
international names, and companies of mixed capital, to be specified by a decision issued by the Minister of 
Commerce . 
Article 4:  
Application for registration of a trade name shall be submitted to the Commercial Register Office. If more 
than one merchant or company applies to register the same name, priority shall be given to the first one who 
used it publicly . 
Article  5: 
In case the application for registration of the name is approved, it must be published in the manner specified 
by the implementing regulations. The Commercial Register Office may reject the application pursuant to a 
reasoned decision within thirty days . 
Article 6:  
Upon registration of the name in the Commercial Register no other merchant may to use it in the Kingdom 
in connection with the same commercial activity in which the owner of the registered name is engaged. If the 
commercial name applied for is s imilar to a commercial name already registered in the Commercial Register, 
the merchant shall add to that name something to distinguish it from the name already registered . 
Article 7:  
The merchant, whether an individual or a company must post his trade nam e clearly on the front of his place 
of business as well as all his printed materials. Where there is a difference between the trade name of the 
individual merchant and his name as registered in the Civil Register, the merchant shall record his name as 
registered in the Civil Register fully in all his printed materials and he shall sign the same in all his commercial 
transactions .  
Article 8:  
The trade name shall not be disposed of independently of the place of business, and any disposition of the 
place of b usiness does not include its trade name unless otherwise agreed to in writing. In this case the person 
to whom the name is transferred shall add to it a statement signifying the transfer of ownership. If the 
predecessor agrees to the use of the original tr ade name without any addition, he shall be responsible for the 
obligations of the successor entered into under this name if the successor fails to meet them . 
   
2 
 
Article 9:  
Whosoever succeeds to own a trade name incidental to transfer of ownership of a place of business shall also 
succeed his predecessor’s rights and obligations undertaken under this name. Nevertheless, the predecessor 
shall remain responsible jointly with the successor for the performance of these obligations. Any agreement 
to the contrary is  not binding on third parties unless recorded in the Commercial Register and third parties 
are given notice, by registered mail, and is published in the Official Gazette and another Saudi newspaper, 
provided that no one objects to it within thirty days aft er the date of delivery of the notice or the date of 
publication in the newspaper whichever earlier. A lawsuit for responsibility of the successor for the 
obligations of the predecessor shall not be heard after the expiration of five years from the date of  transfer of 
ownership of the place of business .  
Article 10:  
In case of transfer of the place of business without its trade name, the predecessor shall be responsible for the 
obligations arising prior to the transfer of ownership of the place of business unless there is an agreement 
providing, in addition to that, for the joint responsibility of the successor for these obligations . 
Article 11:  
If the trade name is used by other than its owner or is used by its owner in a way that violates the law, those 
concerned may request the Minister of Commerce to prevent its use or strike it off the Commercial Register 
if already registered. They may also resort to the Board of Grievances for compensation if appropriate . 
Article 12:  
Without prejudice to any more sever e penalty provided in another law, any person who uses a trade name in 
violation of the provisions of this Law shall be liable to a fine not exceeding SR 50,000. The penalty may be 
doubled if the offense is repeated. The decision may include the publicatio n of its summary at the expense of 
the violator in a local newspaper, or in any other appropriate manner, depending on the type of offense 
committed, its severity and its impact on society, provided that the publication of the decision after it has 
been fo rtified by the prescribed period or supported by the competent court . 
Article 13:  
The officers of the Commercial Register, each in his area of competency, shall investigate and record 
violations of this Law and the decisions issued for its implementation.  
Article 14:  
Pursuant to a decision by the Minister, a committee shall be formed consisting of three or more members, 
including at least one specialist in law, to investigate violations of this Law and impose penalties  thereof .  
Article 15:  
The representative of the public prosecution in the Ministry of Commerce and its branches, each in 
accordance with its powers, shall be charged with the responsibility of prosecuting violations of the provisions 
in this Law before the Committee . 
Article 16:  
The protection provided pursuant to provisions of this Law expires when the commercial registration of the 
merchant, whether an individual or a company, is cancelled, and whatever the reason may be. It also expires 
when the name is stricken off the Commercial Register by a decision of the Minister of Comm erce, if it 
appears that the registration was effected in violation of the provisions of this Law . 
   
3 
 
Article 17:  
Parties concerned may object before the Minister of Commerce decisions of the Commercial Register Office 
and to the decisions of the Committee e mpowered to impose penalties within thirty days from the date of 
notice of the decision .  
The refusal of the Commercial Register Office to make a decision which the Office should have made in 
accordance with the laws and regulations or its failure to act, shall be deemed a decision. Within thirty days 
from the date of notification of the Minister’s decision, the parties concerned may also file a grievance with 
the Board of Grievances against the decisions of the Minister of Commerce made in connection with their 
objections or which were made pursuant to Articles 11 or 16 of this Law . 
In case no decision is made by the Minister in connection with the objection or the application submitted to 
him, within a period not exceeding sixty days of the date of filing the objection or the application, the party 
objecting or the applicant may file a grievance with the Board of Grievances against the decision of the 
Commercial Register Office or against the decision of the committee empowered to impose penalties, or in 
connection with his application, within thirty days of the date of expiration of the period specified for the 
Minister to make his decision . 
Article 18:  
The Board of Grievances shall have jurisdiction to decide all lawsuits and disputes arising from the 
implementation of this Law .   
Article 19:  
The Minister of Commerce shall issue the regulations and decisions necessary for the implementation of the 
provisions of this Law . 
Article 20:  
This Law shall be published in the Official Gazette and shall come into force after ninety days of the date of 
publication .