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Wednesday, 27 April 2016

11 SAGIA Rules to select the name of your Business

All of us know that if a foreigner wants to start business in Saudi Arabia, he has to apply for SAGIA license. We have explained in detail the step by step procedure to apply for SAGIA license. One of the steps to apply for SAGIA license is to choose the name of the company you are going to register. This article gives you tips to choose your company name if you want to apply for SAGIA license. Whenever a new company is formed, perhaps one of the most important factors of its survival in the market is a trendy or smart name. This will catch the attention of new customers and will allow the business to flourish. Whenever choosing a company name, the investors may choose a unique commercial name or use their original name (if they already have established business outside Saudi Arabia). Below you will find some vital information regarding the guidelines given by the SAGIA for the selection of company names which operate in the Kingdom.


  1. The name of the company must include the phrase which would indicate the legal recognition of the company or institution.
  2. The company name must be approved by the official authorities of the commercial names of business which would be undertaking certain business activities which will be within the jurisdiction of these authorities.
  3. The company name must be identical to the name of the institution or original company if it is a branch or is a sort of representative office for a foreign based company, which has to be followed by the phrase “ representative office / a branch of foreign company”.
  4. The name of the company must be dissimilar and completely unique from the other commercial names in the market or those which have already been registered with the Ministry or even the Director of Industrial Property.
  5. The name of the company cannot be registered under the name of a third party at the Ministry of Commerce and Industry.
  6. The company name cannot imply any violation of the traditions, customs, public morals or the religious believes.
  7. The company name cannot denote any other activity which would contradict the actual activity which is intended to be carried out by the business.
  8. The name of the company may not be same or similar to any other famous brand name.
  9. The company name cannot have, partly or wholly, any word or expression which has any sort of political connection or indication which might be related to the regime, royalty or constitution of any company.
  10. The company name cannot include phrase such as insurance, investment, bank and other words of the sort unless they have gained prior authorization from the Ministry of Commerce and Industry.
  11. The name of the company cannot be using the name of a person who is not involved in the company neither is he an investor. However the company may use the name if the objective of the company is to use any invention or patent which is registered under the name of the person or any company which has acquired a commercial firm can adopt the name of the acquired company as their own name.

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