Saudi Ministry of Commerce Urges Companies to Comply with New Companies Law Ahead of Deadline

Riyadh, Saudi Arabia - With only 19 days remaining, the Saudi Ministry of Commerce is issuing a final call to businesses to adjust their status in line with the new Companies Law. This law, which came into effect on January 19, 2023, requires all existing companies to conform to its regulations by January 18, 2025, as mandated by the Royal Decree dated 12/1/1443.

The Ministry is actively encouraging companies to update their articles of association or statutes through the Saudi Center for Economic Business's Business Platform, available at business.sa. To facilitate this process, companies are advised to utilize the “Amendment of Articles of Association/Statutes” service provided on the platform. By accessing this service, businesses can fill out and submit their application electronically. Importantly, for the present time, companies amending their statuses will benefit from no financial charge for publication fees.

The Ministry has underscored the importance of this compliance, emphasizing that regulatory measures will be taken against companies that fail to amend their documentation in accordance with the provisions of the new Companies Law after the January 18, 2025 deadline. These measures are part of the government's efforts to standardize corporate practices and enhance the regulatory environment within the Kingdom.

This move aligns with Saudi Arabia's broader economic reforms aimed at increasing transparency and accountability within the corporate sector, contributing significantly to the business landscape's health and competitiveness. Companies are thus urged to act swiftly to ensure compliance and take advantage of the current incentives offered during the amendment process.