Saudi Arabia Implements New Commercial Register and Trade Name Laws Effective April 3

Riyadh, April 3 (Saudi Arabia Breaking News) – The Ministry of Commerce announced the official implementation of the new Law of Commercial Register and the Law of Trade Names, along with their respective executive regulations, effective Wednesday, April 3. The updated legislative framework is designed to modernize commercial activity, streamline regulatory processes, and enhance transparency across the Kingdom’s business environment.

Among the most significant reforms is the introduction of a unified commercial registry, which consolidates all business activities under a single registration, eliminating the need for subsidiary registries. The Ministry stated that this change will reduce financial burdens on businesses and improve regulatory efficiency.

The new system replaces the previous renewal process with an annual electronic confirmation of registry data, and introduces strict enforcement mechanisms. Entities failing to confirm their data within the designated timeframe may face suspension or deletion of their commercial registration.

Businesses are now required to link bank accounts to their commercial registration and obtain activity-specific licenses within 90 days, unless a longer period is approved by the relevant licensing authority. Existing businesses with sub-registries will have a five-year grace period to rectify their status in compliance with the new rules. Penalties for non-compliance will include warnings, corrective actions, or financial fines depending on the severity of the infraction.

In parallel, the Law of Trade Names introduces updated regulations aimed at increasing trust in the commercial sector. The new system allows businesses to reserve trade names in advance, with the possibility of extending reservation periods. The scope of acceptable names has expanded to include Arabic, Arabized, English, and alphanumeric formats.

The law also permits the independent disposal or transfer of trade names, separating them legally from the parent establishment. To protect brand integrity, it prohibits the registration of identical or confusingly similar trade names, even when business activities differ.

Regulations further define criteria for the use of family names, personal names, and terms associated with the Kingdom or public landmarks, ensuring alignment with national identity and public interest.

The Ministry emphasized that these reforms are part of broader efforts under Saudi Vision 2030 to strengthen the Kingdom’s commercial sector, improve ease of doing business, and promote private sector growth.

Full documentation and regulatory guidelines are available on the Ministry’s official website:🔗 https://mc.gov.sa/en/Regulations/Pages/default.aspx