New Commercial and Trade Name Laws to Streamline Business in Saudi

Starting April 3rd, 2025, two major business laws will come into effect in Saudi Arabia, reshaping the commercial registration process and trade name regulations across the country.

The Law of Commercial Register introduces a unified registration system, replacing the need for separate subsidiary registers. Businesses will no longer have to specify a city of registration, and a single commercial license will be valid nationwide. Expiration dates for commercial registrations will be eliminated, replaced by an annual data confirmation process. Additionally, all establishments will be assigned a unified registration number starting with the digit 7. Existing businesses will have a five-year grace period to transition to the new system.

As for the new Law of Trade Names, it now permits trade names to be registered in English, including the use of letters and numbers. It also allows businesses to manage trade names separately from the commercial entity, enabling the transfer of name ownership without transferring the business itself. The new law prohibits the registration of identical or confusingly similar names by different establishments, regardless of sector. Additionally, there are updated rules for using family names and restrictions on misleading or prohibited terms.

These changes are part of a broader effort to modernize the business landscape and streamline processes for entrepreneurs and investors in Saudi Arabia.