Saudi Arabia is implementing significant updates to its business registration process with the introduction of the new Law of Commercial Register and Law of Trade Names. These changes will eliminate the need for subsidiary registers, requiring only a single commercial register valid across all regions. This move aligns with the nation’s strategy to diversify its economy and boost private sector contributions.
The updated laws, effective from April 3, remove the requirement to specify a city for registration. The commercial registration number will now serve as a unified identifier starting with “7,” and there will be no expiration date, just an annual data confirmation. Existing registers have a five-year period to adapt to these changes.
The Trade Names Law now allows for trade names in English, including letters and numbers, and facilitates the separate management and transfer of trade names. It also prevents the registration of similar names across different businesses, regardless of their field, and allows family names to be reserved as trade names.
These reforms, approved by the Saudi Cabinet, aim to streamline business operations and create a more favorable business environment. Commerce Minister Majid bin Abdullah Al-Qasabi noted that these changes would enhance the protection and value of trade names, supporting the goals of Vision 2030.