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.
- Commercial registration Sergeant
- The importance of the Commercial Register in the conduct of business
- Conditions for obtaining a commercial register
- Conditions for obtaining a commercial register for individual enterprises
- When does the commercial registration become invalid
- Steps to renew the commercial register electronically
- Steps to manually renew the commercial register
- Documents required for the renewal of the commercial register
- The cost of renewing the commercial register
- Penalties for doing business without renewing the commercial register
- What are the Registrar's competencies and tasks according to the new system
- When is the commercial registration expunged optionally
- When is the commercial registration expunged and obligatory
- Most frequently asked questions
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 strengthen the new system to protect trade names and maximize their value and ensure the rights related to them, the system decided to prohibit the use of any trade name reserved or registered 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
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. However, there are still some conditions for obtaining a trade register, namely the conditions set by the official authorities, including:
- Submit an official application with the required documents.
- Availability of minimum capital in accordance with the type of business activity.
- Prove that the necessary technical and financial requirements are met.
- 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 according to 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:
- Access to the official website of the Saudi Ministry of Commerce.
- Log in using the approved login data.
- 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
- Update the required data and confirm their correctness.
- Pay the prescribed fees electronically using the available payment methods.
- 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:
- Visit the commercial registration office or the headquarters of the Saudi Ministry of Commerce
- Fill out the custom renewal application form.
- Provide all the required original documents.
- Pay the required fees in cash or through approved means.
- Waiting for data verification and issuance of the renewed record.
- 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 renewal
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 update them 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.
- 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.
- 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 commercial 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 data related to 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
