The board of directors of the Authority of Special Economic Zones has approved the rules for commercial names in special economic zones, which aim to regulate procedures for reserving commercial names, enhance their value, and ensure their protection and related rights within the zone.

These rules apply to companies established in the zone, Saudi companies established in other parts of the Kingdom that register branches inside the zone, branches of Gulf companies registered in the zone, and branches of foreign companies registered in the zone.

Temporary reservation of a commercial name allowed

The rules stipulate that every entity must adopt a commercial name and register it in the companies register to obtain a commercial registration certificate. A temporary reservation with the registrar is allowed without registration in the companies register, for a period of 60 working days from the date the registrar accepts the application. The applicant may request an extension before expiry for an equal period or periods, subject to the registrar's discretion. The rules also state that the reserved commercial name may not be used or disposed of until it is registered in the companies register.

Commercial name may be derived from the investor's personal name

The rules set out controls for name formation: the commercial name is taken from the investor's personal name, a distinctive name, or both. It consists of Arabic or Arabized words, Arabic letters or numbers, or one or more of these. The commercial name must be directly followed by the letters (SEZ) or (م.إ.خ). The Authority may grant exceptions for companies and their branches as it deems appropriate.

The commercial name may also consist of words, letters, numbers, or one or more of these in a language other than Arabic. If a commercial name consisting of numbers is requested for reservation or registration, it may not exceed 9 digits. The commercial name may be reserved or registered in English or another language. When reserving or registering a commercial name in a language other than Arabic in the companies register, the name must be accompanied by the same name in Arabic letters. The registrar may request a certified translation of the commercial name if registration is requested in a language other than Arabic.

Conditions for reserving 'Saudi Arabia' and city names as commercial names

The rules confirm that a family name may be reserved or registered as a commercial name in accordance with the rules, provided that the beneficiary of the reservation or registration bears the same family name as stated in their identification document, or a name composed of the investor's first and second name with their family name.

The name 'Saudi Arabia' or city names in the Kingdom may be reserved or registered subject to several controls: the name must not be identical or similar to the name of any government entity or similar body; the name must not be the main component or essential element of the commercial name; and the investor must, when reserving or registering the name, not harm, distort, or damage the reputation of the Kingdom and its cities. These controls also apply to requests for transfer of ownership of a commercial name that includes the name 'Saudi Arabia' or city names. Exemptions are made for requests from a government entity, entities subject to special regulations, and companies that include 'Saudi Arabia' or city names at the time of merger.

Procedures for requesting reservation of a commercial name

The rules specify procedures for requesting reservation or registration of a commercial name with the registrar: the application must include the commercial name the investor wishes to reserve, the name of the beneficiary of the reservation, their national ID or residence permit number, mobile number, and email if any, as well as the name of the applicant, their national ID or residence permit number, mobile number, and email if any. The registrar must decide on a complete application within 10 days from the date of submission. The registrar may extend the decision period for reserving or registering a commercial name by no more than 30 days. If the application is rejected, the decision must be reasoned and communicated to the applicant as specified in the rules. The applicant has the right to appeal to the Authority within 60 days from the date of being notified of the rejection.

The rules emphasize that the reserved commercial name may not be used or disposed of until it is registered in the companies register. It is prohibited for any other person to use the reserved or registered commercial name of an entity in accordance with the rules. An entity whose commercial name is registered in the companies register has the right to claim compensation from anyone using its commercial name for resulting damages before the competent judicial authority.

Prohibition on registering misleading names or those contrary to public decency

The rules prohibit the reservation or registration of a commercial name that violates public order or public decency, or that leads to deception, or whose use is prohibited under relevant regulatory provisions. This includes names that are similar to a reserved or registered commercial name in the companies register of the zone, other zones, or other parts of the Kingdom, regardless of the type of activity, according to criteria for similarity of commercial names and distinctions between them as stated in the rules; or similar to a globally famous commercial name or trademark; or similar to a registered or famous trademark in the zone, other zones, or other parts of the Kingdom, unless the trademark is owned by the applicant.

Also prohibited is the use of names that carry a political, military, or religious meaning, implication, or content, or that are similar to the name, honorific emblem, or symbol of any local, regional, or international organization or one of its institutions.

A request for reservation or registration of a commercial name will be rejected if it is found to be similar to another reserved or registered commercial name. The rules define criteria for similarity: a commercial name is considered similar to another if its spelling form is similar to a reserved, registered, or globally famous commercial name; or if there is a match in the spelling with a different word order; or if there is a match in the spelling with a difference of one letter.

A name is also considered similar if there is a match in the spelling with the addition, deletion, or change of pronouns, dual forms, plural forms, or the definite article; or if the pronunciation of a number or letter matches the spoken word, or vice versa. These criteria apply to the commercial name in English in accordance with its equivalent in Arabic letters.

Disposal of the registered name allowed

The rules require an entity to display its commercial name on the facade of its place of business according to its nature, and to include it in all its documents, correspondence, and publications. An entity registered in the companies register may amend its commercial name after fulfilling the conditions and procedures. The conditions and procedures for requesting an amendment to a registered commercial name are the same as those for requesting registration of a new commercial name.

The rules confirm that an entity may dispose of its registered commercial name independently of the entity according to mechanisms set by the Authority. Disposal of the commercial name is not effective until it is registered and published in the companies register. Rights and obligations previously incurred under that commercial name do not transfer to the new owner upon disposal of the commercial name through transfer of ownership, unless otherwise expressly stated in the disposal contract.