Saudi Arabia’s New Business Laws Boost Efficiency

Streamlined commercial registration and trade names to enhance business environment

Saudi Arabia has introduced new laws for commercial registration and trade names to streamline business operations and improve the business environment.

Announced during a Cabinet meeting led by Crown Prince Mohammed Bin Salman, these changes aim to simplify processes and reduce burdens on commercial establishments.

In early 2024, the trade sector saw 104,000 new commercial registrations, marking a 59% increase from the previous year. Additionally, 44% of these registrations were granted to women, contributing to over 1.45 million certificates issued nationwide.

The new regulations establish a unified national registration system, allowing business owners to obtain a single registration for multiple activities or businesses across the country. Registrations will remain valid indefinitely, provided business information is updated annually.

All businesses are now required to maintain a designated bank account for financial transactions. Existing sub-registers have a five-year grace period for owners to transfer or cancel their registrations.

These reforms are expected to significantly enhance the ease of doing business in Saudi Arabia.

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