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Trade name reservation is a crucial step for investors looking to establish a business in Saudi Arabia. The Ministry of Commerce provides a streamlined process to secure a trade name for a maximum period of 60 days until the commercial registration is issued. This article outlines the service terms, eligibility criteria, and the latest updates regarding trade name reservation in the Kingdom.
Eligibility Criteria for Trade Name Reservation
To reserve a trade name in Saudi Arabia, the applicant must meet the following conditions:
Must be at least 18 years old.
Must not hold a government position.
Must be alive at the time of application.
Must be either the direct beneficiary of the trade name or have valid authorization on behalf of the beneficiary.
If the applicant is a government entity or an affiliated institution, a formal request letter must be provided.
In case of representation by an attorney, a copy of the agreement between the attorney and principal must be submitted, certified by the Saudi embassy in the home country and authenticated by the Saudi Ministry of Foreign Affairs. The agreement must also be translated into Arabic by an accredited translation office.
Trade Name Reservation Rules & Restrictions
When selecting a trade name, it must adhere to the following regulations:
If reserving an Arabic trade name, it must consist of Arabic words, Arabized words, letters, Arabic numbers, or a combination of these.
If reserving an English trade name, it must consist of English words, letters, numbers, or a combination of these.
The trade name must not:
Violate public order or morals.
Be misleading or deceptive.
Resemble any registered or reserved trade name in the commercial registry.
Imitate a globally renowned trademark or a well-known registered trademark in Saudi Arabia.
Contain any political, military, or religious connotations.
Resemble the name, honorary title, or symbol of a local, regional, or international organization.
Include any prohibited names according to the Ministry’s list.
Reference a government or semi-government entity.
Use names of Saudi cities, regions, or public places unless approved by regulations.
Violate provisions related to family name registration in trade name laws.
Latest Update: Trade Name Reservation for Foreign Investors (April 2025)
As of April 3, 2025, foreign investors can now reserve trade names directly through the Saudi Business Platform. Additionally, trade names can be issued in both Arabic and English, providing greater flexibility for international businesses entering the Saudi market.
Why Trade Name Reservation is Important
Securing a trade name is an essential part of the business registration process in Saudi Arabia. It ensures:
Legal protection against unauthorized name usage.
Brand identity establishment before commercial registration.
Compliance with Saudi regulations, avoiding legal disputes.
Final Thoughts
The trade name reservation process in Saudi Arabia is a critical step for both local and foreign investors. Adhering to the eligibility criteria, naming rules, and staying updated with the latest regulations will help ensure a smooth registration process.
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