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Commercial activities in Saudi Arabia are governed by strict laws and regulations aimed at regulating the market and ensuring that all commercial businesses comply with local standards. Whether you are a Saudi or Gulf citizen looking to enter the Saudi market, understanding the necessary conditions for obtaining and opening a commercial register is essential. Below, we explain the steps and detailed requirements for both cases.

Conditions for Extracting a Commercial Register

To obtain a commercial register in Saudi Arabia, you must meet a set of basic conditions and requirements. These conditions include the following:

• National Identity: Saudi applicants must provide a valid Saudi national ID.
• National Address: Register the national address for the individual or institution.
• Commercial Activity: Specify the type of commercial activity to be practiced.
• Capital: Determine the necessary capital for the project.
• Special Licenses: If the activity requires special licenses (such as in the health or educational sectors), these must be obtained before applying.

The following table illustrates some details related to the requirements:

Conditions for Opening a Commercial Register for Gulf Citizens in Saudi Arabia

For Gulf citizens wishing to open a commercial register in Saudi Arabia, there are specific conditions to be aware of, including:

• Residence: The applicant must be a resident in Saudi Arabia or have a Saudi partner.
• Legal Documents: Provide all legal documents related to nationality and residence.
• Permits: Obtain the necessary permits from the government bodies regulating commercial activities.
• Partnership with Saudis: In some cases, the law may require Gulf citizens to have a Saudi partner in the business.

It is very important that the application for a commercial register be submitted after meeting all conditions and ensuring compliance with Saudi regulations to guarantee the successful start of any commercial activity.

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Conditions for Extracting a Commercial Register in Saudi Arabia

In its effort to facilitate administrative procedures and enhance economic participation for all community members, Saudi Arabia now offers multiple options for extracting a commercial register, including electronic commercial registration and special conditions to encourage entrepreneurship among women. We review the specific conditions for each of these categories below.

Conditions for Extracting an Electronic Commercial Register

To facilitate the process of extracting a commercial register, the Saudi government has introduced electronic services that allow investors to submit their applications online. The basic conditions for extracting an electronic commercial register are:

• Electronic Registration: Register via the “Merass” electronic government portal.
• Digital Documents: Upload all necessary documents in digital format (such as ID, business license if required).
• Electronic Payment: Pay the fees related to the commercial register through the electronic system.
• Electronic Verification: Undergo automatic verification and approval processes.

Conditions for Extracting a Commercial Register for Women

Saudi Arabia encourages entrepreneurship among women by simplifying procedures and offering special support. The conditions for extracting a commercial register for women are:

• National Identity: Proof of identity with a woman’s national ID card.
• Registration in Women’s Services: Register in services dedicated to women on the government’s electronic portal.
• Special Licenses: If the business requires special licenses, the woman must have obtained these licenses before applying.
• Training Courses: In some cases, women are encouraged to attend training courses related to management and business.

By providing a supportive environment and removing bureaucratic barriers, Saudi Arabia works to promote entrepreneurship among both male and female citizens, contributing to economic diversification and stimulating growth.

Details of the Commercial Register in Saudi Arabia

Knowledge of the commercial register details, how to inquire about them, and the specific duration for reserving a trade name are essential for anyone wishing to start or manage a commercial activity in Saudi Arabia. Here is an explanation of how to inquire about the commercial register using the civil register number and information related to the duration of reserving a trade name.

Inquiring About a Commercial Register Using the Civil Register Number

To inquire about a commercial register using the civil register number, you can follow these steps:

1. Visit the Website: Access the website of the Saudi Ministry of Commerce or the electronic government services portal “Absher.”
2. Log In: Use your login credentials to access the services.
3. Select the Service: Go to the inquiries section and choose “Inquire about a Commercial Register Using the Civil Register Number.”
4. Enter the Data: Enter the civil register number and any other required information.
5. Verify and Inquire: Follow the instructions to view the desired commercial register.

This service allows individuals and companies to easily access their commercial information without the need to visit government offices.

Duration of Trade Name Reservation

The duration of reserving a trade name is the period during which the chosen trade name is kept reserved for you while you complete the registration procedures. In Saudi Arabia, the conditions are as follows:

• Standard Duration: The trade name can be reserved for 180 days from the date of reservation.
• Renewal: The trade name reservation can be renewed before the original period expires if necessary.
• Fees: A fee must be paid when reserving the trade name, and there may also be renewal fees.

This period provides sufficient time for investors to organize their affairs and complete all necessary procedures to establish the business under the chosen name.

Also, read about the basics of Company Incorporation In Saudi Arabia and important legal steps in our detailed guide available on the Eyad Reda Law Firm website.

Details and Fees of the Commercial Register in Saudi Arabia

Understanding the details of the commercial register and the associated fees is an essential part of the business establishment process in Saudi Arabia. Those wishing to enter the Saudi commercial market must be aware of the requirements and financial costs involved.

Commercial Register Details

The commercial register is an official document containing important information about the company or commercial institution. The basic details in the commercial register include:

• Company or Institution Name: The registered trade name.
• Type of Commercial Activity: Details of the activities the company intends to practice.
• Head Office Address: The geographical location of the company.
• Registration and Expiry Date: The date of the register’s creation and its expiry date.
• Owner or Partners: The names of the owners or partners in the company.

These details are necessary for transparency and to facilitate dealings between companies and with government entities.

Commercial Register Fees

The fees for extracting a commercial register vary based on several factors, such as the type of commercial activity and the size of the company. Here is an overview of the expected fees:

• Initial Registration Fees: Ranging from 200 to 600 Saudi Riyals, depending on the type of activity and the size of the company.
• Renewal Fees: The annual fees for renewing the commercial register may be similar to the initial registration fees.
• Additional Fees: Additional fees may apply for certain services such as reserving a trade name or obtaining special licenses.

It is important to ensure that these details are updated and fees are paid on time to avoid any penalties or delays that may affect business operations.

Steps and Duration for Extracting a Commercial Register in Saudi Arabia

Managing a business in Saudi Arabia requires adherence to official procedures, including extracting and printing the commercial register. Here we explain the necessary steps to print the commercial register electronically and the expected duration for extracting this register.

Steps to Print the Commercial Register Electronically

To print the commercial register electronically, you can follow these steps:

1. Access the Electronic Portal: Visit the Saudi Ministry of Commerce portal or the electronic government services system “Absher.”
2. Log In: Use your login credentials.
3. Select the Service: From the main menu, choose “Commercial Register Services” then select “Print Commercial Register.”
4. Confirm Data: Ensure the accuracy of the commercial register data to be printed.
5. Issue the Electronic Copy: An electronic printable copy (usually in PDF format) will be provided.
6. Print the Commercial Register: Use a connected printer to print the electronic copy of the commercial register.

Duration for Extracting a Commercial Register

The duration for extracting a commercial register depends on several factors such as the completeness of the submitted documents and their verification. In typical cases, the duration is as follows:

• Electronic Application: The commercial register can be extracted within 24 hours to 3 business days if applied electronically and all required documents are correct and complete.
• Manual Application: In the case of manual application or if there are missing documents, the process may take from a week to several weeks.

Electronic application significantly speeds up the process and reduces delays that can arise from traditional methods. It is important to ensure that all submitted data and documents are accurate and complete to ensure the commercial register is extracted in the shortest possible time.

Also, read about the commercial court Law and its impact on the business environment in Saudi Arabia in our comprehensive analysis available on the Eyad Reda Law Firm website.

Commercial Activities and Activating the Commercial Register in Saudi Arabia

Trade in Saudi Arabia is governed by laws and regulations that ensure market safety and state security. There are certain activities that require special permits from security authorities, and there are specific rules for foreigners who wish to activate a commercial register without owning a commercial premises. We will explain this information in detail below.

Commercial Activities Requiring Permits from Security Authorities

In Saudi Arabia, some commercial activities require special permits from security authorities due to their sensitive nature or potential associated risks. These activities include but are not limited to:

• Weapons and Explosives: Trading or manufacturing weapons and ammunition.
• Chemical Materials: Activities involving the sale or import of hazardous chemical materials.
• Security and Guard Services: Companies providing security and guard services.
• High Technologies: Trade in certain types of advanced technologies, especially those that can be used for military or intelligence purposes.

To obtain these permits, the required documents and information must be submitted to the competent security authorities and await the evaluation of the application, which may include intensive security checks.

How to Activate a Commercial Register Without a Premises for Foreigners in Saudi Arabia

For foreigners wishing to activate a commercial register in Saudi Arabia without the need to own a commercial premises, there are some steps and requirements to follow:

• Partnership with a Saudi Citizen: Foreigners are often required to enter into a partnership with a Saudi citizen who can provide the required commercial premises.
• Using a Virtual Address: Some services provide the possibility of using a virtual address that can be registered as the business location.
• Online Application: The application for activating the commercial register should be submitted through approved electronic platforms, providing all required documents and information.
• Investment License from the Investment Authority: If the commercial activity requires it, an investment license from the General Investment Authority must be obtained.
• Registration for Tax and Social Insurance: Additionally, ensure that the business is registered with the Saudi tax and social insurance authorities.

These steps allow foreigners to start and activate their businesses in Saudi Arabia even without an actual commercial premises, providing great flexibility for foreign investors.

Canceling and Extracting a Commercial Register in Saudi Arabia

In the context of commercial activities in Saudi Arabia, those wishing to terminate their business need to cancel their commercial register, while those wishing to start a home-based business can extract a special commercial register. Below are the conditions and necessary steps for both procedures.

Conditions for Canceling a Commercial Register in the Kingdom

Canceling a commercial register requires following several steps to ensure all legal and financial obligations are settled. The conditions include:

• Settling Debts: Clearing all debts and financial obligations related to the business activity.
• Notifying Relevant Authorities: Informing all government and private entities about the business termination.
• Submitting the Application: Submitting the cancellation request via the Ministry of Commerce’s electronic portal or by visiting one of its offices.
• Attaching Supporting Documents: Attaching documents proving the settlement of debts and other obligations.
• Receiving Approval: Waiting for approval from the Ministry of Commerce to complete the cancellation process.

Extracting a Commercial Register for Home-Based Business

With the growing popularity of home-based businesses, the Saudi government has provided the possibility of extracting a commercial register for those wishing to establish a home-based business. The conditions and steps are:

• Specifying the Activity: Determine the commercial activity to be practiced from home.
• Electronic Registration: Register through the Ministry of Commerce’s electronic portal.
• Special Requirements: The specific activity may require additional licenses depending on the sector, such as health or education.
• Municipal License: Obtaining municipal approval if the activity involves direct dealings with customers.
• Meeting Health and Safety Standards: Ensure the home meets the necessary health and safety standards to operate a commercial activity.

These steps allow individuals to start their own businesses easily and conveniently from home, contributing to economic growth and providing diverse job opportunities within the community.