Establishing a commercial registration is the first step for anyone wishing to officially and legally launch their own business in Saudi Arabia, whether an individual or a company. A commercial registration grants legal approval to conduct business activities in any field and ensures access to government and financing services directed to the business sector.

If you intend to start your own business in Saudi Arabia, you need to know all the details of the process of establishing a commercial registration. Follow along with us.

First: What is a Commercial Registration?

A commercial registration is a legal document that grants any business the approval to conduct its commercial activities. It is also a database under the supervision of the Ministry of Commerce, containing information on all merchants, companies, and sole proprietorships, such as the merchant's or company's name, type of activity, establishment address, registration number, and other details related to the business.

Second: Requirements for Establishing a Commercial Registration in Saudi Arabia

The Ministry of Commerce in Saudi Arabia sets a number of requirements for establishing a commercial registration, the most important of which are:

- The business owner must be a Saudi citizen.

- The business owner or applicant for a commercial registration must be at least 18 years old.

- The business owner or the business establishment must not be a government employee. - The project owner must not already possess a commercial registration for a sole proprietorship.

- Obtaining an investment license from the Ministry of Investment for foreign investors.

Third: How to Establishing a Commercial Registration

Applications to open a commercial registration can be submitted at service centers located throughout Saudi Arabia. However, with the Kingdom's digital transformation under Vision 2030, an online commercial registration service has been made available through the Ministry of Commerce's electronic service via the Saudi Business Center platform. This service aims to help citizens start their businesses without needing to visit service centers.

- Steps to create a commercial registration via the Saudi Business Center platform:

(1) Access the Saudi Business Center platform.

(2) Select the "Commercial Registration" service from the list of electronic services, specifying that the registration type is "Establishment."

(3) Enter all the required information about the establishment, such as specifying the business activity, capital, and any applicable e-commerce activity details.

(4) Also, fill in your personal information as the establishment owner and your contact information.

(5) Finally, review the information, agree to the declaration, and submit the application.

It's worth noting that if you already have a commercial registration, you can submit a renewal or amendment request through the platform, completing all steps electronically, including paying fees using the various payment methods offered.

- Required Documents for Issuing a Commercial Registration

There are a number of documents that must be attached when submitting a request to open a commercial registration:

1. Proof of approval from the licensing authority if the business activity requires a license before commencing operations.

2. Proof of e-commerce activity if the business activity is conducted electronically.

3. If the application is submitted by a cooperative or charitable organization, the following documents are required from the Ministry of Human Resources and Social Development or the National Center for the Development of the Non-Profit Sector: (A copy of the registration certificate; a copy of the letter approving the organization's board of directors along with a copy of the organization's bylaws; a copy of the cooperative's bylaws; and a document authorizing a Saudi national from the organization's board to complete the registration procedures in the commercial register.)

4. If the application is submitted by a charitable endowment (waqf), the following documents are required: (The endowment deed from the Personal Status Court; and a legal power of attorney from the endower, the endowment administrator, or the board of administrators to obtain a commercial registration using the endowment deed.)

Fourth: Commercial Registration Fees

Commercial registration fees are undoubtedly part of your project or business budget, so it's essential to understand the costs in detail.

(1) When opening or issuing a commercial registration

The cost of opening a new commercial registration for the main register ranges from 200 to 1,200 Saudi Riyals, varying according to the legal entity type. For example, the main registration fee for an Establishment is 200 Riyals annually, and for a branch registration, it's 100 Riyals, while the annual registration fee for a limited liability company is 1,200 Riyals.

(2) When amending the commercial registration

Sometimes, business owners or establishments change their name after launch, change their address, or even change the business activity itself. In such cases, it's necessary to update the commercial registration with the latest data to ensure there are no discrepancies between the information recorded and the actual business activity.

Therefore, if you make any changes to the basic information related to the business activity, you must amend the commercial registration.

The fee for amending the commercial registration is 100 Riyals.

Finally, If you wish to start your own business legally and officially, contact us at Mohammed AlKhliwi Law Frim to help you complete all the procedures related to issuing your commercial registration.

Disclaimer: The above content does not constitute legal advice, and the author of the article bears no legal responsibility. For legal advice, please contact us.