As of today … the start of the penetration of the commercial registry and commercial names

The Ministry of Commerce announced the enforcement of the two commercial registry systems, commercial names and their executive regulations starting today, April 3, and the return of services provided to the business sector related to the two systems after their development to keep pace with the legislative aspect of the two systems.

This comes as a continuation of the development of the legislative system that enhances the practice of business, and to keep pace with economic and technical developments and the transformation witnessed by the Kingdom in Vision 2030.
The two commercial registry systems, commercial names and their two executive regulations can be found through this link.

Registration procedures in the commercial registry

The commercial registry system facilitates the practice of business by organizing the registration procedures in the commercial registry, ensuring the achievement of transparency and reliability through the validity and accuracy of the data restricted in the record, its accuracy, and its modernization, and the availability of viewing it in a manner that ensures the ease of searching and reaching it.

The system was satisfied with one commercial registry for the facility at the Kingdom level, including all its activities, and the issuance of sub -records for individual institutions and companies canceled, which contributes to alleviating financial burdens on commercial facilities.

The annual confirmation of registration data

The system introduced the requirement for the annual confirmation of registration data in the commercial registry “electronically” instead of the practice used to renew the registry, and the merchant was certainly required for the annual registry data, every 12 months of the date of issuance.
The registration is suspended in the commercial registry and the related services if the annual confirmation is not provided within 90 days from the date of its entitlement.
The registration is removed from the commercial registry automatically after a full year since the comment began if the merchant does not submit during this period a request to raise the suspension with the annual confirmation, and the performance of the financial compensation scheduled in addition to the established financial fine.

Bank accounts linked to the facility

The system obliged to open bank accounts linked to the commercial facility to enhance its reliability, and the merchant is committed within 90 days to issue licenses to practice activity restricted in the commercial registry, “unless the licensed party provides for a longer period.”

He also granted a 5 -year deadline to correct the conditions of the existing sub -records of institutions and companies, and created a path for alternative penalties that include: the merchant warning, or obliging him to take the necessary steps to avoid the occurrence of the violation in the future, or obliging him to take corrective steps to address the effects of the violation, or issue a decision to correct the data restricted in the commercial registry.

Commercial names system

The commercial names system and its executive regulations enhance confidence in the commercial environment by organizing the procedures for reserving commercial names and restricting them in the commercial registry, enhancing their value, ensuring their protection and related rights.

The system allowed the reservation of the trade name before being registered for a specific period “extendable to one time”, according to specific controls, with the statement of commercial names that are prohibited from registering.

And expand the scope of the registration of commercial names by allowing the name to be in Arabic, Arabized, or English words, or consisting of letters or numbers.

The possibility of disposing of the trade name

The system allowed the possibility of disposing of the trade name independently of the facility.
The system prohibits the registration of any commercial name for a facility if it is similar to the name of another facility, even if the activity is different, and this comes within the framework of protecting names and enhancing transparency and competitiveness in the commercial environment.

The regulations also identified controls for reservation or registration of family names and the name of the personal merchant, the name of Saudi Arabia and the names of cities, regions and public places as commercial names.