Saudi Arabia Make Amends in Commercial Registry
Saudi Arabia is set to implement a new system for commercial registration and trade names. Key changes include the cancellation of subsidiary registers for individual enterprises and companies, according to Al Sharq Alawsat On line Newspaper.
Also, individual enterprises will no longer be allowed to issue more than one commercial register per owner. Currently, businesses pay 100 SAR ($26) to open additional branches in the Saudi market, along with varying commercial chamber subscription fees.
Notification Requirements
The new system prohibits the repetition of the middle part of a trade name, even if the last part differs. Activities will be deleted if a license is not issued within a specified period. The procedural amendments include mandatory notification of the Ministry of Commerce when issuing a commercial register for a licensed activity, and vice versa.
Bank Account, Trade Name Transfer
The amendments also require opening a bank account for the business within three months of register issuance. It also allows for the transfer of a trade name separately from its associated registers, including active ones.
The new system will develop key electronic services for commercial registers of individual enterprises and companies.
Similarity in Names
Services to be developed for the trade name system include linking with the Saudi Authority for Intellectual Property to check for name similarities with trademarks, requesting trade name reservation extensions, and objecting to trade name reservation rejections.
A central integration system will be developed to facilitate information exchange, reduce errors, and unify modification sources. Coordination committees will be formed to oversee the implementation of changes and resolve technical challenges.
Issued Registers
The Ministry of Commerce reported a 3.9% increase in issued commercial registers in 2023, with 326,830 registers compared to 314,512 in 2022. Wholesale, retail, construction, accommodation, food services, and manufacturing sectors accounted for the highest proportion of issued registers. There were 277,910 registers for individual enterprises and 48,920 for companies. At the end of the previous year, there were 1.397 million active commercial registers, 1.125 million for individual enterprises, and 272.6 thousand for companies. Female-owned enterprises constituted 38% of all enterprise registers by the end of 2023.
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