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Saudi Arabia – New Commercial Registration and Trade Name Law
The Kingdom of Saudi Arabia implemented new Commercial Registration and Trade Name Laws on the 3rd of April 2025, aligning with Vision 2030’s economic transformation goals.
The new requirements apply to all entities operating in Saudi Arabia, regardless of size or sector. This comprehensive approach ensures a uniform system across the business landscape.
Key Changes
The new legislation introduces a fundamental change in the commercial registration process. Instead of periodic renewals, businesses will now be required to submit annual confirmations. This shift eliminates expiration dates on commercial registrations, providing companies with greater operational continuity. However, it also places more responsibility on businesses to proactively maintain their compliance status.
Under the new system, companies must confirm their registration within 12 months of its issuance. A three-month grace period is provided after this deadline before any suspension occurs. If a company fails to confirm its registration within one year of suspension, the commercial registration will be automatically cancelled.
Confirmation Timeline
For existing businesses, the first confirmation must be submitted within 12 months from this date. New registrations will need to be confirmed within 12 months of their issuance date.
Required Information and Document
The Ministry of Commerce requires:
- Valid investment license (MISA)
- Valid commercial registration (CR) and articles of association
- National address
- Copy of the General Manager’s identification document
- General Manager’s national address, email address, and mobile number
The Risk of Non-Compliance
If a company does not submit its annual confirmation on time, its commercial registration and related services, such as bank accounts and government contracts, may be suspended 90 days after the due date.
If the situation is not rectified within one year by submitting the confirmation and paying any applicable penalties, the registration will be automatically cancelled.
Additionally, non-compliant companies may face fines of up to SAR 50,000.
How Mercator® by Citco Can Help
Our team at Mercator is prepared to assist businesses in navigating these changes including:
- Monitoring due dates
- Preparing and submitting confirmation filings
- Advising on compliance implications
For more information, please contact mercator@citco.com.
