Article 14 of the Saudi Trade Names Law
المادة 14 من نظام الأسماء التجارية · الفصل الرابع: المخالفات
The article punishes violations of the Trade Names Law with a fine of up to SAR 50,000, which may be doubled for repetition within three years, taking account of the seriousness of the violation and the size of the business.
Official text (Arabic)
This article has not been amended since the law was issued.
1- دون إخلال بأي عقوبة ينص عليها نظام آخر، يعاقب بغرامة لا تزيد على (خمسين) ألف ريال كل من:
أ- استعمل اسماً تجاريّاً محجوزاً أو مقيداً له بما يخالف أحكام النظام.
ب- لم يلتزم بأحكام الفقرة (1) من المادة (الثالثة)، أو الفقرة (1) من المادة (السادسة)، أو المادة (الثامنة)، أو الفقرة (2) من المادة (الثالثة عشرة) من النظام.
2- يجوز أن تضاعف الغرامة في حال التكرار. ويكون التكرار بارتكاب المخالفة نفسها الصادر بثبوتها قرار نهائي خلال (ثلاث) سنوات من تاريخ صدور القرار.
3- يراعى في تحديد مقدار الغرامة جسامة المخالفة وظروفها، وملابساتها، وآثارها، وحجم المنشأة. وتحدد اللائحة جدول تصنيف المخالفات.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 14 explained in plain English
This article sets out the penalty for violations of the Law, which is a fine not exceeding SAR 50,000, without prejudice to any penalty provided for in another law.
Who is punished?
- Anyone who used a trade name reserved or entered for him in a way that violates the provisions of the Law.
- Anyone who did not comply with paragraph 1 of Article 3: that is, the merchant who did not adopt a trade name and enter it in the Commercial Register.
- Anyone who did not comply with paragraph 1 of Article 6: that is, anyone who used a trade name reserved or entered for another merchant.
- Anyone who did not comply with Article 8: that is, the merchant who did not display his name on the front of his place of business or did not put it on his documents, correspondence and printed materials.
- Anyone who did not comply with paragraph 2 of Article 13: that is, anyone whose entry of his name was struck off for breach or by a final decision or judgment and who did not enter a replacement name.
Repetition: the fine may be doubled in the case of repetition, and repetition is committing the same violation for which a final decision of its commission was issued, within 3 years from the date of that decision.
Determining the fine: in determining its amount, account is taken of the seriousness of the violation, its circumstances, its surrounding facts, its effects and the size of the business, and the Implementing Regulations set the table classifying violations. So SAR 50,000 is a maximum, not a fixed amount.
Under Article 15, these violations are detected by a category of employees named by decision of the Minister. If a violation has been issued against you, consult a lawyer specializing in commercial cases.
Practical example
A small company in Al-Qassim owns a shop on whose front it has not put its trade name. This is a violation of Article 8, punishable by a fine not exceeding SAR 50,000, taking account in determining it of the size of the business and the seriousness of the violation. If a final decision is issued that the violation is established and the company then repeats it within 3 years of its issue, the fine may be doubled.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 14 of the Saudi Trade Names Law
What is the fine for violating the Trade Names Law?
A fine not exceeding SAR 50,000, taking account in determining it of the seriousness of the violation, its circumstances, its surrounding facts, its effects and the size of the business.
Is there a fine for not putting the trade name on the front of the shop?
Yes. Not complying with Article 8 on displaying the trade name is among the violations punishable by a fine not exceeding SAR 50,000.
Is the fine doubled if the violation is repeated?
It may be doubled if the same violation is committed within 3 years from the date of the final decision establishing it.
Articles this article refers to
- Article 3
The article requires every merchant to adopt a trade name and enter it in the Commercial Register, and permits temporary reservation of the name with the Registrar without entering it, as the Implementing Regulations provide.
1- يجب على كل تاجر اتخاذ اسم تجاري وقيده في السجل التجاري. 2- يجوز حجز الاسم التجاري لمدة مؤقتة لدى المسجل دون قيده في السجل التجاري. وتحدد اللائحة مدة الحجز وض
- Article 6
The article prohibits others from using a trade name reserved or entered for a merchant, and gives the merchant whose name is entered the right to claim compensation before the competent court.
1- يحظر على أي شخص آخر استعمال الاسم التجاري المحجوز أو المقيد للتاجر وفقًا لأحكام النظام، وذلك مع مراعاة الأنظمة الأخرى ذات العلاقة. 2- يحق للتاجر، المقيد اسمه
- Article 8
The article requires the merchant to display his trade name on the front of his place of business according to its nature, and to put it on all his documents, correspondence and printed materials.
يجب على التاجر أن يعرض اسمه التجاري على واجهة مكان مزاولة أعماله التجارية بحسب طبيعتها، وأن يضعه في جميع وثائقه ومراسلاته ومطبوعاته.
- Article 13
The article sets out the cases for striking off the entry of a trade name, requires a replacement name to be entered where the strike-off is for breach or by final decision, and requires the name to be reserved for a merchant whose entry in the Register is struck off.
1- يشطب المسجل -من تلقاء نفسه أو بناءً على طلب ذي مصلحة- قيد الاسم التجاري، في أي من الحالات الآتية: أ- إذا كان يخالف النظام العام أو الآداب العامة أو يؤدي إلى
More articles on Trade Name Violations and Penalties
- Article 8
The article requires the merchant to display his trade name on the front of his place of business according to its nature, and to put it on all his documents, correspondence and printed materials.
يجب على التاجر أن يعرض اسمه التجاري على واجهة مكان مزاولة أعماله التجارية بحسب طبيعتها، وأن يضعه في جميع وثائقه ومراسلاته ومطبوعاته.
- Article 15
The article assigns enforcement of the law's violations to employees named by the Minister who hold law-enforcement status, and lets the Minister issue rules for their work and for rewards for detecting violations.
1- يتولى ضبط ما يقع من مخالفات لأحكام النظام موظفون يصدر بتسميتهم قرار من الوزير، وتكون لهم صفة الضبط. 2- يصدر الوزير قواعد تنظم عمل ومهمات الموظفين المشار إليه
- Article 16
The article provides for one or more committees formed by Ministerial decision to consider violations and impose penalties, and lets the Minister specify violations for which the penalty may be imposed directly.
تكوّن بقرار من الوزير لجنة (أو أكثر) من أعضاء لا يقل عددهم عن (ثلاثة)، ويرأسها ذو تأهيل نظامي، وتختص بالنظر في المخالفات وإيقاع العقوبة المنصوص عليها في المادة
- Article 17
The article allows the committee, once a merchant's violation is established, to warn the merchant or require preventive or corrective steps, in addition to the penalty or instead of it.
إذا ثبت أن التاجر قد ارتكب أيًّا من المخالفات الواردة في المادة (الرابعة عشرة) من النظام، فيحق للجنة أن تتخذ -بالإضافة إلى العقوبة المقررة أو بدلًا منها- أيًّا
- Article 18
The article gives anyone against whom a decision is issued under the law the right to challenge it before the competent court within 30 days from the date of notification.
يحق لمن صدر ضده أي قرار بناءً على أحكام النظام التظلم منه أمام المحكمة المختصة خلال (ثلاثين) يومًا من تاريخ التبليغ به وفقًا لما تحدده اللائحة.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.