How to Register Your Company’s Trade Name in Saudi Arabia

The Trade Names Law was issued by Royal Decree No. (M/83) dated 19/3/1446H, together with its Implementing Regulations, to regulate the registration and protection of trade names in the Kingdom. A trade name is not just a word; it is a valuable financial asset for any company or establishment, representing your reputation, your brand and your clients’ trust. Whether your company is local or foreign, registering the name correctly protects you from competitors and gives you strong legal rights. In this article we explain every step clearly, from the reservation request to protecting, selling and assigning the name.

1. Submitting a Trade Name Reservation Request

Everything starts with a reservation request submitted to the Registrar (the Ministry of Commerce), which must include exactly the following:

  1. The trade name to be reserved.
  2. The beneficiary’s name, ID number and contact details (mobile number, email, etc.).

This request reserves the name for you temporarily, so that no one else can take it before it is formally registered in the Commercial Register.

2. Reserving or Registering the Trade Name

There is an important difference between “reservation” and “registration”:

  • Reservation: holding the name temporarily before it is entered in the Commercial Register.
  • Registration: entering the trader’s data and any amendments in the Commercial Register and publishing them officially.

Article 6 of the Implementing Regulations requires the reservation request to include the same data (the name and the beneficiary’s details).

Under Article 7 of the Law:

  • The Registrar decides on the request within 10 days of its submission (if it meets the requirements).
  • The Registrar may extend this period by up to 30 days if the approval of other authorities is required.

If the name is accepted, the Registrar publishes it in the Commercial Register, including:

  • The trade name.
  • The name of the beneficiary of the reservation.
  • The date of reservation.

The reservation lasts 60 days from acceptance, and you may request an extension for a similar period before it expires; the Registrar may extend it further depending on the case. Importantly, you cannot use or dispose of the name until it is registered in the Commercial Register.

A registered trader may also amend the trade name after meeting the requirements. The amendment takes effect from the date of its registration, without affecting rights and obligations that arose before the amendment.

3. Disposing of the Trade Name

The new law treats the trade name as an independent financial asset, meaning you can sell or assign it without selling the entire business. However, strict controls apply to protect creditors and third parties.

Selling the Trade Name Without the Business

You may now sell the trade name on its own (for example, selling the name to another person while keeping the premises and equipment), provided the name is “distinctive” or a “family name” (not a generic descriptive name). In this case:

  • The buyer does not bear your previous debts, since those debts are tied to your financial liability and the business assets you still hold.
  • The buyer has purchased only the name, so creditors have recourse against you, not the buyer.

Selling the Trade Name Together With the Business

If you sell the entire business (equipment, clientele and trade name):

  • Debts and rights transfer to the buyer, who has taken over the whole business.
  • Even if the contract provides that the buyer is not liable for past debts, that agreement is not enforceable against creditors unless they consent.
  • Without the creditors’ consent, you and the buyer are jointly liable (a creditor may claim against either of you), and the buyer’s liability for your debts lapses five years after the transfer of ownership.

Importantly, any sale or assignment of a trade name has no effect (as if it never happened) until it is:

  • Registered in the Commercial Register.
  • Published officially.

This protects third parties, who need to know that the owner of the name has changed so they know whom they are dealing with.

How Can Shehab Alsaleh Law Firm Help You Register and Protect Your Trade Name?

Many traders choose a sentimental or generic name without checking its legal validity, which leads to rejection or later disputes. Shehab Alsaleh Law Firm helps you with:

  1. A comprehensive search of the Ministry of Commerce and Saudi Authority for Intellectual Property (SAIP) databases to confirm the name is not reserved or confusingly similar to an existing name.
  2. Checking the name’s compliance with laws and regulations, and wording it to be “distinctive” rather than descriptive, making it legally stronger and easier to register as a trademark later.
  3. Completing the forms accurately on the Saudi Business Center or Ministry of Commerce platform, with the correct choice of activity (since the name is tied to the activity).
  4. Dealing with special authorities where the name requires approval (such as using “Makkah”, “Engineer” or “Medical”): we prepare the files and correspond with the relevant bodies to obtain no-objection letters.
  5. If the Ministry rejects the name (as misleading or similar), we draft a legal memorandum explaining the differences and your entitlement to the name, and submit a request for reconsideration.
  6. Managing the name as an ongoing investment asset: franchise agreements, transferring the name in mergers or acquisitions, and amending the name when the legal entity changes.
  7. Protecting and defending the name: monitoring infringements, sending formal notices, filing name-cancellation or unfair competition claims before the commercial courts, and registering the name as a trademark with SAIP for stronger local and international protection.

Your trade name is a major investment that deserves professional legal protection from the start. To register your company’s name or protect it from competitors, contact us through our contact page, and we will make sure your name is secure.

For more official information:
Ministry of Commerce –
Saudi Business Center