The new Commercial Register Law was issued on 19/03/1446 AH (September 22, 2024), replacing the former law enacted on 21/02/1416 AH (July 20, 1995). The new law officially entered into force on 05/10/1446 AH (April 3, 2025), introducing amendments to over 25 articles and marking a full repeal of the previous law. This regulatory overhaul reflects Saudi Arabia’s shift toward digital transformation and aims to improve the efficiency and transparency of commercial activities.

Key updates introduced in the new law include:

Article 1:

Redefines core terms such as “Registrar” and “Commercial Register,” while introducing the concept of a unified electronic register.

Article 5:

Makes registration in the Commercial Register mandatory for all merchants, while granting the Ministry authority to exempt specific categories.

Article 6:

Restructured to list the required registration details, including capital amount and banking information.

Article 7:

Sets out procedures for submitting registration applications and mandates a decision within 10 days, while allowing appeals in case of rejection.

Article 8:

Requires that all applications and procedures be submitted electronically, with regulated exceptions.

Article 9:

Permits registration of non-homogeneous commercial activities under a single record, provided updates are made within 15 days of any change.

Article 11:

Introduces mandatory annual confirmation of commercial register data, eliminating the prior system of register expiration.

Article 15:

Details the suspension process for failure to confirm data, offering a one-year grace period before the register is cancelled.

Article 21:

Establishes penalties of up to SAR 50,000 for submitting false information or violating the law’s provisions.

Articles 22–24:

Set procedures for enforcement and dispute resolution, empowering a specialized committee to issue warnings or corrective actions as alternatives to financial penalties.

Article 29:

Formally repeals the old law and confirms that the new law takes effect 180 days from its publication date.

The new Commercial Register Law introduces a modernized, digital-first regulatory framework that simplifies procedures, enhances transparency, and imposes clear obligations on businesses. From mandatory electronic registration to annual data confirmation, companies must now adapt their compliance processes to meet these evolving requirements.

For tailored legal advice or assistance with Commercial Register compliance and updates, please contact our legal team at info@mashoralaw.com. We’re here to support your business through every regulatory change.