Urgent: Prohibiting misleading and political names… and requiring registration to reserve a trade name in economic zones

Introduced Cities and Economic Zones Authority is a special project "Trade name rules in special economic zones" Cross platform "reconnaissance"It aims to reset the system of reserving trade names and registering them in the register of companies within those regions, in a way that enhances the legal value of the trade name, ensures its protection, regulates the rights related to it, and limits disputes arising from similarity, deception, or misuse.

Compliance with the trade name and its registration

The rules established a mandatory principle stipulating that every investor must take a trade name and register it in the register of companies to obtain a commercial registry certificate, which makes the trade name a legal entry point for directing the trade name. Activity inside Special Economic Zone.

It authorized the reservation of a trade name with the registrar for a temporary period without registering it, for a period of sixty working days from the date of acceptance of the application, with the possibility of extending the period before its expiration for a similar period or periods.

The rules stressed that it is not permissible to use or dispose of the reserved trade name except after it has been officially registered in the companies registry, confirming that reservation does not establish the right to use except after completing the registration procedures, which enhances the reliability of the registry and prevents the circulation of unauthorized names. Regular procedures have been completed.

Composition of the trade name and its formal controls

The rules regulated the mechanism for forming the trade name, permitting it to be taken from the investor’s personal name, a distinctive name, or both, and to consist of Arabic or Arabized words, or Arabic letters or numbers, or a combination thereof.

They required that the trade name be directly followed by the letters “M.E.H.” or “SEZ,” in a way that distinguishes establishments. Special Economic Zones.

The rules also allowed the name to consist of words, letters, or numbers in a language other than Arabic, with the requirement that the numerical name should not exceed nine digits when requesting its reservation or registration.

In the event that the name was registered in a language other than Arabic, it was obligatory to associate it with the same name in Arabic letters in the corporate registry, while granting the registrar the authority to request a certified translation of the name if it was submitted in a language other than Arabic.

It authorized the reservation or registration of the family name as a commercial name, Provided that the beneficiary of the seizure or registration bears the same name on his personal identification card, or that the name is a combination of the investor’s first and second names and his family name, with these provisions applying to cases of transfer of ownership of a trade name that includes a family name.

Controls for using a name "Saudi Arabia" And the names of cities

The rules specifically addressed the issue of reserving or registering the name “Saudi Arabia” or the names of the cities of the Kingdom within the commercial name. They permitted this under precise conditions, most notably that the name should not be identical or similar to the name of a government entity or the like, and that it should not constitute a name. "Saudi Arabia" Or the name of the city, the essential element or main component of the trade name, in addition to the investor’s obligation not to harm or insult the reputation of the Kingdom and its cities.

These controls also applied to requests to transfer ownership of the trade name containing those names, with the exception of government agencies or cases for which a special regulation has been issued, as well as companies, one of which bears the name "Saudi Arabia" Or the name of a city upon merger.

Procedures for requesting reservation, registration, and first priority

The rules specify the data for the request to reserve or register a trade name, including the requested name, the data of the beneficiary of the reservation, and the data of the reservation applicant, including identity or residence numbers and means of communication.

They obligate the registrar to decide on the completed application within ten days from the date of its submission, with the period permissible to be extended for a period not exceeding thirty days.

They oblige the trade name accepted to be reserved or registered for a month. In the companies registry, including the name, the name of the beneficiary, and the date of the reservation, with the person requesting the reservation or registration being charged the financial compensation for the month, if any.

It decided that the priority of the first request should be given in the event of multiple requests for one name, and it was obligatory to give reasons for the rejection decision and notify it to the person requesting the reservation, while giving him the right to appeal before the authority within sixty days from the date of his notification.

Protecting the trade name and the right to claim compensation

The rules prohibit any person from using the reserved or registered trade name. To others in accordance with its provisions, it granted the investor whose trade name was registered in the register of companies the right to demand compensation for damage from the person who used his name before the competent judicial authority, in a way that enhances the civil protection of the trade name and consolidates its value as a moral asset capable of protection.

Prohibited names and similarity standards

The rules set out a detailed list of names prohibited from being reserved or registered, prohibiting names that violate public order or public morals or are misleading, or whose use is prohibited. In accordance with relevant regulatory provisions.

Names similar to a reserved or restricted trade name in the region or the Kingdom were also prohibited, regardless of the type of activity, according to specific criteria for similarity of names.

The prohibitions included names similar to internationally famous, registered, or well-known trademarks in the Kingdom, unless they were owned by the applicant, as well as names with political, military, or religious connotations, or similar to the names or logos of local, regional, or international organizations.

It was approved. The rules are criteria for determining similarity, including the matching of the alphabetical chart with a difference in the order of the words, or the difference of one letter, or the addition or deletion of the definite article or pronouns or dual and plural forms, or the matching of the pronunciation of the number or letter with the pronunciation and vice versa. This applies to names in the English language according to their equivalent in Arabic letters.

The rules gave the registrar the authority to accept or reject the application if he found a similarity, while preparing a periodic list of non-distinctive names.

Display the name. And amending it

The rules required the investor to display his trade name on the facade of his establishment according to its nature, and to place it in all documents, correspondence and publications, in a way that enhances transparency and facilitates identification of the establishment.

The rules permitted the amendment of the trade name after fulfilling the same conditions and procedures prescribed for registering a new name, provided that the amendment takes effect from the date of its registration in the register of companies without prejudice to the rights and obligations prior to the amendment.

Disposal of the trade name. And its independence

The rules regulated the mechanism for disposing of a registered trade name, permitting the investor to dispose of it independently of the establishment in accordance with the mechanisms determined by the Authority, with the requirement that the disposal be recorded and published in the companies registry for its effectiveness.

It confirmed that the rights and obligations that have arisen under the name do not automatically transfer to the person to whom the name is transferred upon the transfer of ownership, unless the disposal contract expressly stipulates otherwise.

Delete the name registration. And its effects

The rules gave the registrar the power to cancel the registration of a trade name on his own initiative or upon the request of an interested party in specific cases, including a violation of public order or the issuance of a final ruling to delete or delete the registration in the companies registry.

It was obligatory to notify the person whose name was crossed out, and gave him a period of thirty working days to register an alternative name in certain cases, otherwise the name would be replaced with the registration number in the companies registry for those with legal status.

The case was regulated. Deleting the registration in the companies registry, obliging the registrar to reserve the trade name for a period of sixty working days, with the possibility of extending the reservation, and allowing it to be used or disposed of after re-registering it.

Registering Violations and Fees

The rules assigned the task of controlling violations to employees appointed by a decision of the Council and who have the capacity of control, while requiring them to highlight their job description, adhere to impartiality and confidentiality, disclose any conflict of interest, not visit establishments outside their working hours, and practice Powers are as stipulated in the relevant rules and regulations.

With regard to fees, the rules set a financial fee for reserving the trade name in Arabic or in any language other than Arabic in the amount of 200 riyals, 100 riyals for extending the reservation period, and 100 riyals for disposing of the trade name, which adds financial clarity to the services provided and enhances the stability of the procedures.

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