Rules for registering companies in economic zones and disclosing the beneficiary
the Economic Cities and Special Zones Authority launched the “Companies Registry Rules in Special Economic Zones” project through the “Istilaa” platform. This initiative is part of the Kingdom’s efforts to develop a competitive business environment according to the highest international standards. The new rules aim to strengthen the regulatory framework for registration procedures and control the business lifecycle from establishment to deregistration.
The importance of economic zones and promoting compliance
Special economic zones are a cornerstone of Saudi Arabia’s Vision 2030, designed to be global logistics and industrial hubs. This underscores the importance of these new regulations focusing on the “beneficial owner,” a legal term referring to the individuals who effectively own or control a company. This disclosure contributes to combating money laundering and commercial concealment, and improves the Kingdom’s ranking in international ease and integrity of doing business indices.
Details of the beneficial owner disclosure
Under the new regulations, a dedicated section is allocated requiring every establishment to disclose the "beneficial owner" data and submit supporting documents to the authority. This requirement applies not only to new companies but also to existing establishments at the time the regulations come into effect, obligating them to rectify their status and disclose this information before the renewal date of their commercial registration certificate.
To ensure the accuracy of the information, the rules require companies to maintain a special register within the facility that includes up-to-date data on the beneficial owner, making it available to the authority upon request, and reporting any changes that occur within 15 days.
Registration procedures and applicable fees
The regulations established a flexible and expedited registration process, with applications that meet the requirements being processed within just five days. Required information includes details of capital, managers, business activity, and contact details. Establishments are also required to submit bank account information within 90 days of registration.
Regarding fees, the regulations stipulate a fee of 1,000 riyals annually for issuing or renewing a commercial registration certificate, and 100 riyals for each data update. The registration validity period ranges from two to five years, in accordance with the duration of the primary license.
Oversight and penalties
To ensure compliance, the regulations granted enforcement powers to specialized staff appointed by a decision of the Board, while emphasizing the principles of impartiality and confidentiality. The regulations also authorized penalties for violators, reflecting the Authority's commitment to enforcing order and protecting the economic environment from any illegal practices.
