Article 17 of the Saudi Trade Names Law
المادة 17 من نظام الأسماء التجارية · الفصل الرابع: المخالفات
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 من الآتي:
1- إنذار التاجر.
2- إلزام التاجر باتخاذ الخطوات الضرورية لتجنب وقوع المخالفة مستقبلًا.
3- إلزام التاجر باتخاذ الخطوات التصحيحية اللازمة لمعالجة آثار المخالفة.
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 17 explained in plain English
This article gives the violations committee flexibility in dealing with violations, so it is not limited to the fine.
When does it apply? When it is established that the merchant committed any of the violations listed in Article 14, such as failing to adopt and register a trade name, using another merchant's trade name, failing to display the name, or failing to register a replacement name after a deregistration.
What measures? The committee may take any of the following:
- Warn the merchant.
- Require the merchant to take the necessary steps to avoid the violation in the future.
- Require the merchant to take the corrective steps needed to remedy the effects of the violation.
Relation to the fine: These measures may be taken in addition to the fine provided for in Article 14 (not exceeding SAR 50,000) or instead of it. This is discretionary for the committee referred to in Article 16, meaning it decides what suits each case.
Anyone against whom a decision is issued under the provisions of the law may challenge it before the competent court within 30 days from the date of notification, under Article 18.
Practical example
It is established that a small business in Hail did not put its trade name on its invoices. The committee may decide to settle for warning it and requiring it to correct the invoices instead of a fine, or to combine a fine with a requirement to correct, depending on its assessment of the case.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 17 of Trade Names Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Commercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
شركة امتداد النظام للمحاماة والاستشارات المهنية
- Labour & Employment Law
- Criminal Law
- Criminal Law
- Commercial & Corporate Law
Frequently asked questions about Article 17 of the Saudi Trade Names Law
Can the committee just issue a warning instead of a fine?
Yes. Once the violation is established, the committee may warn the merchant instead of the prescribed penalty or in addition to it.
What are the alternative measures under the Trade Names Law?
Warning the merchant, requiring the necessary steps to avoid the violation in the future, or requiring the corrective steps to remedy its effects.
Articles this article refers to
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 14
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.
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
- 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 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.