The most important legal news in local newspapers
We in Ben Arafa Law Group Consulting & Legal Legitimacy L.L.C likes to provide you of the most important legal news in the local newspapers for this week, which related to your business and commercial, labor and procedural activities, and accordingly we provide you with the most important news as follows:
Standards for similarity between trade names
Ministry of Commerce launches the approved standards for inspecting the applications for reserving or registering trade names, as they justify rejection of application in a case of similarity with another reserved, registered or internationally well-known trade name. The trade name is considered similar to another name in a case of similarity in the spelling form that includes:
Similar spelling but there is a difference in word order.
Similarity with adding, deleting or changing pronouns, using plural form or using “The” as a definite article.
Similarity in pronunciation of numbers or letters with the utterance and vice versa.
Similarity of English names opposite their Arabic translation.
According to article number seven of the executive bylaw for trade names, the period for inspecting application shall be (10) days from the date of filing it after the completion of information. The applications shall be responded through that period. The registrar may extend that period to (30) days in a case it is required to have approvals from the concerned authorities.
Ministry of Commerce Allocates the Conditions for Commercial Register Transfer of an Individual Establishment
Ministry of commerce launches the regulations and the procedures for transferring the commercial register of an individual establishment from a person to another, in addition to the case of the establishment owner death, that is through the electronic services which are available at business website of the Saudi Business Center in the following conditions:
Regulatory conditions for property transfer:
The commercial register should be active.
The new owner shouldn’t be a governmental official.
The new owner shouldn’t be younger than 18 years.
The new owner shouldn’t own another commercial register of an individual establishment.
The commercial register shouldn’t be related to the personal name of the previous owner.
In a case of the present owner death:
Heirs inventory document.
Guardianship document in a case there are minors.
A legal power of attorney from all heirs for the establishment assignment.
A sale and assignment contract from the heirs, including the commercial register number.
Capital Market Authority Launches the Regulations for International License of Stock Market Business Practice
Capital Market Authority regulates the international license for practicing stock market business, with the aim of attracting international identities and facilitating their approach of the Saudi market through a separate license that consider operational demands and ensures optimal compliance to the international practices.
Objectives of regulations:
Launching a new international license for practicing stock market business in the KSA.
Developing a regulatory framework that allocates the regulations and the demands for each license group.
Operational and Structural Facilitations:
The regulatory framework includes a number of facilitations for international identities, which include:
Decreasing the demands of the legal structure.
Decreasing minimum paid capital.
Facilitating the conditions of financial competence and the registered functions.
Regulating the permitted activities according to the national regulations.
Binding behavioral principles:
Framework number 11 applies behavioral principles on the establishments which have the international license, to include:
Fairness and transparency.
Providing services with the due diligence, care and considering the customer interests.
Competent management and effective internal control system.
Protecting assets of customers and providing an organized operational environment.
Disclosure of material changes and cooperating with controlling authorities.
Requirements of license and identity:
Filing the application form and the regulatory information.
Confirming technical and operational competence.
Availability of management experience, financial policies and risk management systems.
The identity office should be located in the KSA.
Attaining the license for a regional office from the ministry of investment.
The paid capital shouldn’t be less than the operation costs for an entire year.
Regulating customer capital:
The organizational framework imposes accurate duties on establishments related to the capital of customers that include:
Opening accounts at national or international banks when required.
Notifying customers when their money is transferred outside the KSA.
Weekly settlement of accounts to ensure accurate balances.
Revenues of money may be provided by a written approval from the customer.
Money which isn’t sorted as customer capital:
The bylaw points out that the due amounts as expenses or commissions for the establishment shall not be considered as customer capital, unless they are transferred to separate accounts in the customer name.
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