Asharq Al-Awsat learned that the private sector in Saudi Arabia was able to monitor 20 challenges facing the implementation of the new commercial registration system, in a step that reflects continuing efforts aimed at developing the regulatory environment and enhancing the competitiveness of the business sector, as 4 challenges were addressed by the competent authorities, while 12 challenges are still being addressed, and 4 others are under study.
These efforts come within the framework of coordination between the public and private sectors to address regulatory and procedural obstacles, and facilitate the practice of commercial activities, in a way that supports the growth of establishments and raises the efficiency of the business environment, in line with the objectives of “Vision 2030” in enhancing the role of the private sector as a major engine of economic growth.
The Ministry of Commerce announced the entry into force of the commercial registry and trade names systems and their executive regulations, starting today, April 3, of last year, and the return of services provided to the business sector related to the two systems after developing them to keep pace with the legislative aspect of the two systems.
According to the information, in cooperation with the Saudi Labor Market Committee, the Studies Department of the Federation of Saudi Chambers listed the challenges faced by the private sector following the implementation of the new commercial registry system, and submitted 20 challenges to the Licensing Committee at the Saudi Competitiveness and Business Center, where by the end of the third quarter of the current year, 4 of them had been addressed, 12 were under treatment, and 4 were under study.
The commercial registry and trade name systems come as a continuation of the development of the legislative system that enhances the practice of business, and keeps pace with economic and technical developments, and the transformation that the Kingdom is witnessing in “Vision 2030”.
The commercial registry system facilitates doing business by organizing registration procedures in the commercial registry, ensuring transparency and reliability through the validity and accuracy of the data registered in the registry, updating it periodically, and making it accessible in a way that ensures ease of searching for and accessing it.
The system was satisfied with one commercial register for the establishment at the Kingdom level, comprehensive for all its activities, and canceled the issuance of subsidiary registers for individual institutions and companies, which contributes to alleviating the financial burdens on commercial establishments.
The system introduced the requirement for annual confirmation of registration data in the commercial registry “electronically” instead of the practice of renewing the registry, and obligated the merchant to annually confirm the registry data, every 12 months from the date of issuance.
Registration in the commercial registry and its related services will be suspended if the annual confirmation is not submitted within 90 days of its due date. The registration will be automatically deleted from the commercial registry after a full year since the start of the suspension if the merchant does not submit a request during this period to lift the suspension along with submitting the annual confirmation and paying the prescribed financial compensation in addition to the prescribed financial fine.
The system obligates the opening of bank accounts linked to the commercial establishment to enhance its reliability, and the merchant is obligated within 90 days to issue licenses to practice the activity registered in the commercial registry “unless the licensing authority stipulates a longer period.”
It also granted a period of 5 years to correct the status of existing subsidiary registers for institutions and companies, and created a path for alternative penalties that include: warning the merchant, obliging him to take the necessary steps to avoid the occurrence of a violation in the future, obliging him to take corrective steps to address the effects of the violation, or issuing a decision to correct the data registered in the commercial register.
