Here’re details of new commercial register, trade names laws

Saudi Cabinet’s approval for the Commercial Register and Trade Names Laws paves the way for ease of doing business and reduces the burdens on commercial establishments by requiring one record only per establishment, Minister of Commerce Majid Al-Qasabi said.

The Trade Names Law aims to organize the procedures for reserving and registering trade names to protect them and enhance their value, in line with the economic and technological developments in Vision 2030, he added.

The minister explained that the Law of Commercial Registration, which consists of 29 articles, contributes to facilitating the practice of business by organizing the procedures for commercial registration and ensuring the accuracy of the registered data, while allowing ease of access.

The new law also developed a number of provisions, most notably establishing a central electronic database in which the names and data of traders are recorded, and stating the specializations and procedures for commercial registration. The law granted a grace period of five years to correct the existing sub-registrations for companies and establishments. , either by transferring the sub-registration of the sole proprietorship to another party to be the main register, or transferring the sub-registration of the company or establishment to a new company, or revoking the sub-registration and transferring its assets and activities to the main registrations. It also obligated commercial establishments to open bank accounts linked to the establishment, in order to enhance its reliability and ensure the integrity of its transactions. The law abolished the requirement to renew commercial registration, in addition to the expiry date of the registration. It introduced the requirement for annual confirmation of the commercial registration data electronically, and obligated the merchant to confirm the commercial registration data annually, precisely every 12 months from the date of issuance.

The minister stated that the Law of Trade Names, which consists of 23 articles, aims to organize the procedures for reserving and registering names in the commercial registration.