Renewal of commercial registration-terms and fees

To ensure business continuity in the Saudi market, he promises Renewal of the commercial register An essential step for everyone who practices business activities. The Commercial Register is not just a routine procedure, but it serves as the identity of the business entity, and one of the legal requirements that enhance credibility in front of official bodies, investors, so you can find out everything that matters regarding the renewal of the register in this article.

Definition of commercial registration

 Commercial registration It is an official document issued by the Saudi Ministry of Commerce or any of its competent departments, stating the establishment of a company, whether it is the establishment of a limited liability company, a Joint Stock Company, an individual company, or a solidarity company. The commercial register contributes to documenting its basic data such as the name of the establishment, type of business activity, capital, and the address of the headquarters. This document serves as the legal identity of the company, since many administrative and financial transactions are based on it.

The importance of the Commercial Register in the conduct of business

The role is not limited Commercial registration It is not only a legal document, but also a strategic tool for effective business management. It helps in building trust with customers and investors, enhances the transparency of business activity. In addition, the commercial register plays a pivotal role in facilitating procedures related to obtaining licenses and government approvals, which contributes to reducing administrative red tape and increasing operational efficiency. The commercial registration system in Saudi Arabia was issued inجري Hijri, and an amendment to it was issued in 1445 Hijri, and the last amendment included several different items from the old system, such as:

• Creation of a central electronic database in which the names of traders ' data are stored.
• Cancel the issuance of subsidiary registers for institutions and companies and settle for one main commercial register at the level of the kingdom covering all the activities of the institution.
• The system granted a five-year period for commercial institutions to correct the sub-records to become main records and gave them options either to assign the sub-record to another party to be the main record or transfer the sub-record of the company to a new company or write off the sub-register and transfer its assets and activities to the main register.
• The system obliges commercial establishments to open bank accounts linked to the establishment in order to enhance the reliability and safety of transactions.

• Cancel the order condition Renewal of the commercial register The requirement for electronic annual confirmation by the registry holder of the registry data was introduced
• In order to enhance the protection of trade names, maximize their value and ensure the rights related to them, the system decided to prohibit the use of any reserved or registered trade name in the commercial register without the official consent of the owner and also stipulated that the name is not similar to the name of any other establishment, even if the activity of the establishments differs.

Conditions for obtaining a commercial register

The kingdom has issued many amendments to the Commercial Registers, the most important of which is the new commercial register system. But there are still some conditions for obtaining a trade register, namely The conditions set by the official authorities, including:

1. Submit an official application with the required documents.
2. Availability of minimum capital in accordance with the type of business activity.
3. Prove that the necessary technical and financial requirements are met.
4. Obtaining approvals from the concerned authorities if the activity requires it.

Conditions for obtaining a commercial register for individual enterprises

To extract Commercial registration An individual enterprise has several conditions such as:

• Unless the founder's age is less than ١٨ a year. 
• The capital should not be less than ٥٠٠٠ SAR. 
• Unless the holder of the record is a government employee. 

These conditions come to ensure that the business is legal and operates in accordance with the approved standards, protecting the rights of both investors and regulators.

When does the commercial registration become invalid

It becomes Commercial registration Null in several cases may adversely affect the workflow, including:

• The validity period of the register expires without renewal (electronic data update annually ) .
• No obligation to update the basic data when changes occur.
• Involvement in legal violations that lead to suspension or cancellation of the register.
• Failure to pay fees or dues related to it.

In such cases, the enterprise may face legal and administrative sanctions that affect its credibility and the continuity of its activity.

Steps to renew the commercial register electronically

Electronic service is one of the fast and effective means To renew the commercial register, The following steps include:

1. Access to the official website of the Saudi Ministry of Commerce. 
2. Log in using the approved login data.
3. Choose the ” My Business Records " Service and enter the current record number.

Click on the commercial registration renewal icon select the commercial registration renewal period from one to five years

4. Update the required data and confirm their correctness.
5. Pay the prescribed fees electronically using the available payment methods.
6. Receipt of the receipt and electronic copy of the record after confirmation.

Steps to manually renew the commercial register

For those who prefer the traditional method of rejuvenation, it can Renewal of the commercial register Via manual procedures that include:

1. Visit the commercial registration office or the headquarters of the Saudi Ministry of Commerce 
2. Fill out the custom renewal application form.
3. Provide all the required original documents.
4. Pay the required fees in cash or through approved means.
5. Waiting for data verification and issuance of the renewed record.
6. Receive the signed paper copy after confirming the completion of all procedures.

Those wishing to use this method should make sure of the opening dates in order to avoid any delays. This method is suitable for those who suffer from a problem in electronic regeneration.

Documents required for the renewal of the commercial register

The owner of the facility needs To renew the commercial register To submit a package of documents, which usually includes:

• A copy of the current commercial register.
• A copy of the national ID or passport.
• Lease agreement or title deed of the premises.
• Documents confirming the payment of the due fee.
• Any other documents required by the competent authority according to the type of business activity.

These documents ensure the correctness of the data and their updating in accordance with legal standards.

The cost of renewing the commercial register

The cost varies  Renewal of the commercial register Depending on the type of activity and the size of the enterprise, but they are usually reasonable and suitable for supporting the business environment. The fees are determined based on clear criteria by the competent authorities.

1. In the case of the main register : ريال sar per year plus the Chamber of Commerce fees, which are determined based on the type of activity of the commercial register and the degree for each year. 
2. In the case of the sub-register : ريال sar per year plus the Chamber of Commerce fees, which are determined based on the type of activity of the commercial register and the degree for each year.

Penalties for doing business without renewing the commercial register

Represents Renewal of the commercial register Failure to comply with this exposes the establishment to several penalties, including:

• Temporarily suspend commercial activities until the renewal is completed.
• Cancellation of the commercial registration, which leads to a complete cessation of commercial activity.
• Additional sanctions may include legal proceedings against those responsible for the facility.

However, in general, in the interest of the Saudi government to grow business, no financial penalties are imposed due to delays in Renewal of the commercial register But the renewal fee is charged only retroactively., These sanctions are aimed at protecting the market and official entities from abuses and ensuring the safety of business transactions.

What are the Registrar's competencies and tasks according to the new system

 According to the latest updates of the law, the Registrar assumes the following competencies and tasks:

• Registration of trade names and data of traders, issuance of registration certificates. 
• Provide recommendations, on issues related to the commercial register, to the relevant authorities. 
• Development of registration procedures in the commercial register by taking advantage of best practices.
• Awareness and education of the provisions of the law.
• Make any necessary correction of the data registered in the commercial register.
• Request the data related to the merchants registered in the Commercial Register from the relevant authorities to benefit from it while promoting the development of the business sector in the kingdom.

When is the commercial registration expunged optionally

Subject to the provisions of the companies law and other related regulations, the merchant may apply for cancellation of his registration in Commercial registration Optionally, if he ceases to practice his commercial activity, as determined by the regulation.

When is the commercial registration expunged and obligatory

The registrar must write off the merchant's entry in Commercial registration In the following cases:

1. A final court ruling was issued to delete the entry from the commercial register. 
2. The termination of liquidation based on the corporate or bankruptcy regime. 
3. The death of the merchant, unless his heirs request to amend the entry. The registrar must notify them before the cancellation procedure, as determined by the regulation.

How can Tarik Alamal Alalmia help me in renewing the commercial register

TTarik Alamal Alalmia is a leading company in establishing companies in the kingdom of Saudi Arabia and the United Arab Emirates, in addition to being a company specialized in clearing government transactions from obtaining a commercial register, a commercial license, obtaining privileged residencies and employee residencies, and many services, so you can rely on the international business route in Renewal of the commercial register For your organization in the kingdom of Saudi Arabia. You can communicate with global business Road experts with their extensive experience in commercial legal affairs, they can help you overcome obstacles and legal representation before the competent authorities while providing all solutions that ensure Renewal of the commercial register Your smoothness. 

In conclusion, he promises Renewal of the commercial register An indispensable vital procedure for any commercial establishment operating in Saudi Arabia. It contributes to maintaining the legitimacy of the business activity and ensures the continuity of work effectively and efficiently. Whether the renewal is done electronically or manually, compliance with the required documents and legal conditions reflects the entity's keenness to respect the laws and avoid financial and legal penalties. Therefore, everyone who wishes to engage in commercial activity should take care to renew his commercial register on time to ensure the smooth functioning of the business without any legal or administrative obstacles.

With these clear steps and specific criteria, the Saudi commercial system contributes to creating a competitive and orderly business environment that guarantees the rights of all parties and contributes to strengthening the national economy in general.

Most frequently asked questions 

How much does it cost to renew a commercial registration 

• It costs  Renewal of the commercial register The main one for one year is 200 riyals، To this amount is added The Chamber of Commerce fees, depending on the type of activity, commercial registration and degree.
• The renewal fee of the sub-register is SR 100 per year in addition to the Chamber of Commerce fees, which are determined by the type of activity of the commercial register and the grade for each year.  

How many commercial registration is allowed per individual 

According to the recent amendments to the law on Commercial Registers, a person can now combine several activities into one commercial register instead of a register for each activity as was previously in force.