Kingdom of Saudi Arabia
Ministry of Commerce & Industry
( 3 )
Agreement: (TRIPS)
LAW ON TRADE NAMES (Official Translation)
Royal Decree No. M/15
12 Sha'ban 1420 H
(20 November 1999)
Article 1:
Every merchant must have a trade name to be recorded in the Commercial Register.
This name shall consist of his name as recorded in the Civil Register, a novel
appellation or both. It may include data relating to the type of commercial activity.
In all cases the name must be suitable, not misleading, nor inconsistent with Islamic
Shari ‘ah or public interest.
Article 2:
Subject to the provisions of the Companies’ Law, the name of the company shall be
its trade name and may include a novel appellation or data relating to the type of
commerce in which the company is engaged.
Article 3:
The trade name shall consist of Arabic or Arabized words, and may not include
foreign words, excepted from this provision are: names of foreign companies registered
abroad, companies with well-known international names, and companies of mixed capital,
to be specified by a decision issued by the Minister of Commerce.
Article 4:
Application for registration of a trade name shall be submitted to the Commercial
Register Office. If more than one merchant or company applies to register the same name,
priority shall be given to the first one who used it publicly.
Article 5:
In case the application for registration of the name is approved, it must be published
in the manner specified by the implementing regulations. The Commercial Register Office
may reject the application pursuant to a reasoned decision within thirty days.
Article 6:
Upon registration of the name in the Commercial Register no other merchant may to
use it in the Kingdom in connection with the same commercial activity in which the owner of
the registered name is engaged. If the commercial name applied for is similar to a commercial
name already registered in the Commercial Register, the merchant shall add to that name
something to distinguish it from the name already registered.
Article 7:
The merchant, whether an individual or a company must post his trade name clearly
on the front of his place of business as well as all his printed materials. Where there is a
difference between the trade name of the individual merchant and his name as registered
in the Civil Register, the merchant shall record his name as registered in the Civil Register
fully in all his printed materials and he shall sign the same in all his commercial
transactions.
Article 8:
The trade name shall not be disposed of independently of the place of business, and
any disposition of the place of business does not include its trade name unless otherwise
agreed to in writing. In this case the person to whom the name is transferred shall add to
it a statement signifying the transfer of ownership. If the predecessor agrees to the use of
the original trade name without any addition, he shall be responsible for the obligations of
the successor entered into under this name if the successor fails to meet them.
Article 9:
Whosoever succeeds to own a trade name incidental to transfer of ownership of a
place of business shall also succeed his predecessor’s rights and obligations undertaken
under this name, Nevertheless the predecessor shall remain responsible jointly with the
successor for the performance of these obligations. Any agreement to the contrary is not
binding on third parties unless recorded in the Commercial Register and third parties are
given notice, by registered mail, and is published in the Official Gazette and another Saudi
newspaper, provided that no one objects to it within thirty days after the date of delivery
of the notice or the date of publication in the newspaper whichever earlier. A lawsuit for
responsibility of the successor for the obligations of the predecessor shall not be heard
after the expiration of five years from the date of transfer of ownership of the place of
business.
Article 10:
In case of transfer of the place of business without its trade name, the predecessor
shall be responsible for the obligations arising prior to the transfer of ownership of the
place of business unless there is an agreement providing, in addition to that, for the joint
responsibility of the successor for these obligations.
Article 11:
If the trade name is used by other than its owner or is used by its owner in a way that
violates the law, those concerned may request the Minister of Commerce to prevent its use
or strike it off the Commercial Register if already registered. They may also resort to the
Board of Grievances for compensation if appropriate.
Article 12:
Without prejudice to any more severe penalty provided for under another law, anyone
who uses a trade name contrary to the provisions of this Law shall be punished with a fine
that may not exceed fifty thousand riyals. The penalty may be doubled in the event the
violation is repeated.
Article 13:
The officers of the Commercial Register, each in his area of competence, shall
investigate and record violations of this Law and the decisions issued for its
implementation.
Article 14:
Investigating violations of this Law and the imposition of penalties shall be vested in
a committee formed in pursuant to a decision of the Minister of Commerce composed of
three members, at least one of whom is a law specialist.
Article 15:
The representative of the public prosecution in the Ministry of Commerce and its
branches, each in accordance with its powers, shall be charged with the responsibility of
prosecuting violations of the provisions in this Law before the Committee.
Article 16:
The protection provided pursuant to provisions of this Law expires when the
commercial registration of the merchant, whether an individual or a company, is cancelled,
and whatever the reason may be. It also expires when the name is stricken off the
Commercial Register by a decision of the Minister of Commerce, if it appears that the
registration was effected in violation of the provisions of this Law.
Article 17:
Parties concerned may object before the Minister of Commerce decisions of the
Commercial Register Office and to the decisions of the Committee empowered to impose
penalties within thirty days from the date of notice of the decision.
The refusal of the Commercial Register Office to make a decision which the Office
should have made in accordance with the laws and regulations or its failure to act, shall be
deemed a decisions. Within thirty days from the date of notification of the Minister’s
decision, the parties concerned may also file a grievance with the Board of Grievances
against the decisions of the Minister of Commerce made in connection with their
objections or which were made pursuant to Articles 11 or 16 of this Law.
In case no decision is made by the Minister in connection with the objection or the
application submitted to him, within a period not exceeding sixty days of the date of filing
the objection or the application, the party objecting or the applicant may file a grievance
with the Board of Grievances against the decision of the Commercial Register Office or
against the decision of the committee empowered to impose penalties, or in connection
with his application, within thirty days of the date of expiration of the period specified for
the Minister to make his decision.
Article 18:
The Board of Grievances shall have jurisdiction to decide all lawsuits and disputes
arising from the implementation of this Law.
Article 19:
The Minister of Commerce shall issue the regulations and decisions necessary for the
implementation of the provisions of this Law.
Article 20:
This Law shall be published in the Official Gazette and shall come into
force after ninety days of the date of publication.