The Saudi government has instructed the Saudi Business Center to collaborate with the Ministries of Commerce and Investment and the Saudi Authority for Intellectual Property to explore the potential for establishing a unified economic platform to serve all business sectors in the Kingdom.
This initiative aligns with the center's mandate, which includes streamlining business operations such as launching, managing, and closing businesses while providing relevant services according to international best practices.
The Saudi Business Center is focused on creating an environment that attracts businesses and boosts competitiveness, investment, and growth. It aims to position Saudi Arabia among the top ten countries globally in terms of quality, efficiency, and ease of government services provided to the business sector.
The Cabinet has recently approved the Commercial Register System, which consists of 29 articles and aims to simplify business procedures, ensure the accuracy of data, and make it accessible for easy reference. Key improvements include establishing a central electronic database for trader information and outlining clear registration procedures.
Businesses are given a five-year period to rectify existing branch records. This can be done by transferring the branch record to another party as a primary record, converting it into a new company, or canceling the branch record and transferring its assets to the main register.
Moreover, the system mandates that businesses open bank accounts linked to their operations, enhancing trust and transparency in their transactions. It also removes the requirement to renew the commercial register and instead introduces an annual electronic confirmation of the register's data. Failure to comply within three months results in suspension, and after a year of suspension, the register will be automatically canceled.
The system also includes alternative measures for handling violations, such as issuing warnings and requiring businesses to correct any infractions. These reforms are expected to streamline business operations and enhance the ease of doing business in Saudi Arabia.
