The Ministry of Commerce announced a fine of 4,000 riyals for small companies that fail to comply with financial regulations

Minister of Commerce Dr. Majid Al-Qasabi has approved direct penalties for anyone who fails to fulfill their obligation to submit financial statements, in accordance with the provisions of the Companies Law and its Implementing Regulations. The penalties are effective starting today (Friday).
According to the decision, all types of small and micro-enterprises that violate the regulations, as defined in Article (7) of the Implementing Regulations of the Companies Law, will be subject to a fine of:
4,000 riyals for a company with one manager or chairman of the board,
and 8,000 riyals for a company with two or more managers.

For violators in all types of companies (except unlisted joint-stock companies):
8,000 riyals for a single-manager company with capital less than 500,000 riyals;
4,000 riyals for a company with two or more managers with capital less than 500,000 riyals;
12,000 riyals for a single-manager company with capital of 500,000 riyals or more; and
6,000 riyals for a single-manager company with capital of 500,000 riyals or more.
Regarding the fine imposed on violators in unlisted joint-stock companies:
15,000 riyals for a company with capital less than 5 million riyals;
and 20,000 riyals for a company with capital of 5 million riyals or more.

The decision stipulated that if the violation of failing to submit financial statements is repeated within the statutory period of the fiscal year following the previous final violation decision, the fine will be increased by (50%).
The ministerial decision also emphasized that the mechanism for notifying violators of the direct violation decision must be in accordance with the mechanism stipulated in Article (94) of the Implementing Regulations of the Companies Law.

The Minister of Commerce, Dr. Majid Al-Qasabi, has approved the imposition of direct penalties on anyone who fails to fulfill their duty in submitting financial statements, in accordance with the provisions of the Companies Law and its executive regulations, with implementation starting today (Friday).
According to the decision, violators from all forms of small and micro companies, as per the criteria outlined in Article (7) of the executive regulations of the Companies Law, will be subjected to a fine of:
4,000 Riyals for the violator in a single-director company or chairman of the board
8,000 Riyals for the violator in a company with two or more directors

As for violators in all types of companies (except for unlisted joint-stock companies):
8,000 Riyals for the violator in a single-director company with a capital of less than (500,000 Riyals).
4,000 Riyals for the violator in a company with two or more directors with a capital of less than (500,000 Riyals).
12,000 Riyals for the violator in a single-director company with a capital of (500,000 Riyals) or more.
6,000 Riyals for the violator in a single-director company with a capital of (500,000 Riyals) or more.
Regarding the fines imposed on violators in unlisted joint-stock companies:
15,000 Riyals for the violator if the company’s capital is less than (5 million Riyals).
20,000 Riyals for the violator if the company’s capital is (5 million Riyals) or more.

The submit decision stated that in the event of a repeated violation of the failure to financial statements within the statutory period for the financial year following the previous final violation decision, the fine will be increased by (50%).
The ministerial decision emphasized the mechanism for notifying violators of the direct violation decision to be in accordance with the mechanism stipulated in Article (94) of the executive regulations of the Companies Law.