This comes as a continuation of the development of the legislative system that promotes the practice of business and keeps pace with the economic and technological developments and the transformation witnessed by the Kingdom in Vision 2030.
This comes as a continuation of the development of the legislative system that promotes the practice of business. The Commercial Register facilitates the practice of business by organizing the registration procedures in the commercial register, ensuring transparency and reliability through the correctness and accuracy of the data recorded in the register, updating it periodically, and providing access to it to ensure ease of search and access to it.
The system is limited to one commercial register for the establishment at the level of the Kingdom, including all its activities, and eliminates the issuance of sub-registers for individual institutions and companies, which contributes to reducing the financial burdens on commercial establishments.
<The system introduced the requirement for annual confirmation of the registration data in the commercial register “electronically” instead of the practice of renewing the register, and obliged the trader to confirm the annual confirmation of the register data every (12 months) from the date of issuance, and the registration in the commercial register and related services is suspended if the annual confirmation is not submitted within (90) days from the due date, and the registration from the commercial register is automatically deleted after a full year since the suspension began if the trader does not apply within this period to lift the suspension with submitting the annual confirmation and paying the prescribed financial fee plus the financial penalty prescribed.
<The system requires the opening of bank accounts linked to the commercial establishment to enhance its reliability, obliges the trader within (90) days to issue licenses to practice the activity registered in the commercial register “unless the licensing authority stipulates a longer period”, grants a deadline of (5) years to correct the status of existing branch registers for institutions and companies, and creates a path for alternative penalties that include: Warning the trader, obliging him to take the necessary steps to avoid the violation in the future, obliging him to take corrective steps to address the effects of the violation, or issuing a decision to correct the data recorded in the commercial register.
For its part, the Trade Names Law and its Executive Regulations promote confidence in the commercial environment by regulating the procedures for reserving and registering trade names in the Commercial Register, enhancing their value, and ensuring their protection and related rights.
The Law allows for the reservation of trade names and their registration in the Commercial Register, enhancing their value, and ensuring their protection and related rights.
<The system allows the reservation of a trade name prior to registration for a specific period of time “extendable for one time”, according to specific controls, while indicating the trade names that are prohibited from registration.
It expanded the scope of trade name registration by allowing the name to be in Arabic, Arabicized, English, or composed of letters or numbers.
The system allowed for the possibility of reserving a trade name before registration for a specific period of time, subject to specific controls. The system allows the possibility of disposing of the trade name independently of the establishment. The system prohibits the registration of any trade name of an establishment if it is similar to the name of another establishment, even if the activity is different, and this comes within the framework of protecting names and promoting transparency and competitiveness in the commercial environment.
The regulation sets out the controls of trade names and enhances transparency and competition in the commercial environment.
<The regulation specifies the controls of reserving or registering family names, personal merchant name, Saudi name, names of cities, regions and public places as trade names.
The Commercial Registry and Trade Names Regulations and their implementing regulations can be found at: https://mc.gov.sa/ar/Regulations/.
