The new Trade Names Law was issued on 19/03/1446 AH (September 22, 2024), replacing the previous law dated 21/02/1416 AH (July 20, 1995). It entered into force on 05/10/1446 AH (April 3, 2025) and includes amendments to more than 25 articles. This legislative update reflects a regulatory shift toward digital transformation and aims to enhance the efficiency and transparency of commercial transactions.

Key updates introduced in the new law include:

• Articles 1 and 3:
  Require every merchant to adopt a registered trade name. The law now allows for advance reservation of trade names for a temporary and renewable period without requiring immediate registration—a concept absent from the previous law.
• Article 4:
  Broadens the scope of acceptable trade names to include words, letters, or numbers in Arabic or other languages, subject to executive regulations. This replaces the earlier requirement for trade names to be in Arabic or Arabized terms only.
• Article 7:
  Sets clear standards prohibiting misleading or inappropriate trade names, including names that closely resemble existing registered names, well-known trademarks, or those containing political, religious, or military references.
• Article 10:
  Grants merchants the right to transfer a trade name independently from the commercial establishment, provided it is registered and publicly announced in the Commercial Register. This offers greater flexibility compared to the previous law, which strictly tied trade names to the commercial premises.

The new Trade Names Law introduces greater flexibility, clarity, and modernization to the registration and use of trade names in Saudi Arabia. With expanded options for name formats, electronic procedures, and transferable rights, businesses are encouraged to review their current naming strategies to ensure compliance and take advantage of the new opportunities. For legal inquiries or assistance with trade name registration, compliance, or structuring under the new law, please feel free to contact our legal team at info@mashoralaw.com. We are here to support you with practical and strategic guidance tailored to your business needs.