Regulations for filing financial statements for Saudi companies within 6 months

The Saudi Ministry of Commerce issued comprehensive clarifications regarding the entities and officials responsible for preparing and submitting financial statements for various types of companies, emphasizing the necessity of adhering to the legally mandated deadline of six months from the end of the fiscal year. This step comes as part of the Ministry's ongoing efforts to raise awareness of regulatory requirements and promote governance and transparency in the business sector.

Governance context and business environment development

These measures fall within the broader context of developing the legislative and commercial environment in the Kingdom, in line with the objectives of Saudi Vision 2030, which focuses on creating an attractive and reliable investment environment. Compliance with financial disclosure is a fundamental pillar of the new Companies Law, aiming to protect the rights of shareholders and partners, and to provide accurate information to investors and creditors, thereby enhancing confidence in the Saudi market.

Details of responsibilities according to company type

The ministry separated responsibilities based on the company's legal structure to ensure the accuracy of procedures:

• For unlisted joint-stock companies: The responsibility for preparing the financial statements at the end of the fiscal year rests with the board of directors. These documents must be provided to the auditors 45 days prior to the general assembly meeting and signed by the chairman, the CEO, and the CFO. A copy must also be provided to shareholders 21 days before the meeting and deposited with the Saudi Center for Economic Business.
• Limited Liability Companies: The company manager or board of directors assumes responsibility, with the same time limits (45 days for the auditor, and 21 days for the partners) before the general assembly is held.
• Simplified joint-stock companies: Liability depends on the management structure (chairman, manager, or board of directors), with financial statements required to be presented to shareholders within 6 months of the end of the financial year.
• General partnerships and limited partnerships: Liability lies with the directors or partners, as the case may be.

The economic importance of the deposit obligation

Filing financial statements is not merely a routine procedure; it carries significant economic implications. Domestically, regular financial disclosure contributes to improving companies' credit ratings with banks and financing institutions, and facilitates expansion and access to credit facilities. Internationally, Saudi companies' commitment to transparency standards enhances the Kingdom's position as a global business hub and encourages foreign direct investment seeking a well-regulated and transparent business environment.

Digital transformation and the electronic filing program

The ministry confirmed that the filing process is entirely electronic through approved platforms such as the Electronic Financial Statements Filing Program (Qawaem) and the Saudi Business Center. This digital transformation aims to expedite procedures, reduce human error, and build an accurate national financial database that supports decision-makers and economic analysts in interpreting market indicators with high precision.