Article 3 of the Saudi Trade Names Law

المادة 3 من نظام الأسماء التجارية · الفصل الثاني: أحكام الاسم التجاري وحجزه وقيده

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.

Official text (Arabic)

This article has not been amended since the law was issued.

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 وضوابطه.

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 3 explained in plain English

This article lays down two basic rules:

The duty to adopt a trade name and enter it: every merchant, whether an individual or a legal person to whom the description of a merchant applies under the commercial law, as in the definition in Article 1, must adopt a trade name and enter it in the Commercial Register. It is not enough for a merchant to use a name in his dealings without entering it.
Permission for temporary reservation: a person who wants a trade name may reserve it with the Registrar for a temporary period without entering it in the Commercial Register. This is useful for someone preparing to start his business who wants to secure the name before completing the entry.

The difference between reservation and entry is important: reservation is temporary, whereas entry is the registration of the name in the Commercial Register. The article does not specify the period of reservation or its rules, but refers that to the Implementing Regulations, which must be consulted to know the period and the conditions.

This article is consistent with what appears in Article 2, that the Law aims to regulate the procedures for reserving and entering trade names. Article 4 follows it to explain what the trade name that is reserved or entered consists of.

If you have an existing business without an entered trade name, it is useful to review your position with a lawyer specializing in commercial cases.

Practical example

Sarah plans to open a sweets shop in Jeddah and found a distinctive name that she fears someone else may take before her. She applied to the Registrar to reserve the name temporarily without entering it while she completes the preparations for her business. When she starts trading she must adopt a trade name and enter it in the Commercial Register, and the Implementing Regulations set the reservation period and its rules.

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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