Commercial Register Law

Purpose and scope

• Governs the registration of traders and companies in the commercial register, the data to be recorded and updated, deregistration and violations.
• It aims to make the register a reliable reference on commercial businesses that others can rely on.
• It replaced the previous Commercial Register Law and links the register to continuous updating of data instead of periodic renewal.

Key rules, rights and obligations

• Traders and companies must register before starting business, with the data and documents set by the regulation.
• Any change in recorded data, such as address, activity, capital or managers, must be registered within the statutory period.
• The law requires the data to be confirmed annually; failing to confirm has consequences set by the law that may include suspension of the registration.
• Recorded data bind third parties from the date of entry, and a trader cannot rely on what he did not register.
• The commercial registration number must appear on the business's correspondence, printed material and online platforms.

Violations, penalties and common problems

• Operating without registration, giving false data or not updating it exposes the business to fines set by the Ministry of Commerce.
• Not deregistering on leaving the business keeps related obligations alive.
• Using a registration in another person's name to operate is a crime under the Anti-Concealment Law.

Procedures and key deadlines

• Registration, amendment and deregistration are done online through the Saudi Business Center or the Ministry of Commerce platform.
• Registration is cancelled when trading stops, the trader dies or the company ends, on request or by decision of the competent authority.
• Anyone with an interest may view the recorded data and obtain an extract.

An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.