Saudi Arabia is set to introduce significant updates to its Law of Commercial Register and Law of Trade Names effective April 3, 2025. These new laws, approved by the Ministry of Commerce in September 2024, aim to streamline the process of starting and operating a business within the Kingdom, while also alleviating financial burdens for enterprises.

The updated commercial register law comprises 29 articles and seeks to enhance business operations by regulating registration procedures. It ensures that recorded data is accurate, periodically updated, and easily accessible. A major change includes the elimination of subsidiary registers, meaning a single commercial register will now suffice. Furthermore, businesses will no longer need to specify a city for their registration, allowing one registration to be valid across all regions of Saudi Arabia.

Abdulrahman Al-Hussein, the ministry’s official spokesperson, emphasized that the new laws require commercial establishments to open bank accounts linked to their registrations. This measure is designed to boost reliability and ensure transaction integrity. Moreover, the laws cancel the expiration date for commercial registers, mandating only an annual confirmation of data. The commercial registration number will also serve as a unified identifier for establishments, starting with the digit “7”. Existing subsidiary registers are granted a five-year grace period to comply with the new regulations.

In addition to these changes, the new Law of Trade Names, which consists of 23 articles, will regulate the procedures for reserving and recording trade names. It aims to protect and maximize the value of these names. Notably, the law allows for the reservation and registration of trade names in English, a significant shift from the previous requirement for names to be solely in Arabic.

Al-Hussein highlighted that the new regulations will enable trade names to be managed independently from their establishments, allowing ownership transfers. The law also prohibits the registration of identical or similar names for different businesses, even if their activities vary. Additionally, it includes criteria for the reservation of family names as trade names and establishes guidelines for prohibited or misleading names.

Dr. Majid bin Abdullah Al-Kassabi, Minister of Commerce, remarked that these new laws will significantly reduce the burdens on commercial establishments. He noted that the regulations align with Saudi Arabia’s Vision 2030, supporting economic and technical advancements within the Kingdom while facilitating business operations.