In the growing world of business, commercial register is an essential pillar for the success of any commercial enterprise. It is the document that reflects the company’s identity and documents its legal existence, and it is a history book that carries within its pages the story of growth and economic development. But have you ever wondered how this simple registry can become a key to opening the doors of opportunity and success? So, follow this article with us, through which we will explore the importance of this record and its vital role in the modern business world. We will also learn about the basic information it contains and how it contributes to building trust between companies, customers, and government agencies. This article will give you the inspiration and knowledge necessary to make the most of the records.
What is a commercial register?
It is an important tool used by the Ministry of Trade and Industry to control the movement of trade in the country and organize data related to merchants and companies. It contains detailed information about merchants and the commercial activities that they carry out, and this happens continuously to ensure that it reflects the current situation of business in the country.
Its validity period is limited to only five years, meaning that traders and companies must renew their commercial register regularly and update information about them.
Conditions for obtaining commercial register and the required documents
Obtaining a commercial register for your new project requires complying with a number of conditions and submitting the required documents. Below are the most important main points and documents that must be provided:
Personal identification
For Saudis, a copy of the valid national ID card of the company owner and partners, if any, must be present in addition to the original for verification, while for foreigners who reside in the Kingdom of Saudi Arabia, a passport must be present.
Criminal record
The criminal status document must be extracted from the Civil Registry Office, addressed to the Commercial Register Office, and extracted by the facility owner and partners, if any.
A copy of an official power of attorney
A copy of an official power of attorney must be present if an authorized person is appointed to extract this record on behalf of the company owner.
Ownership or lease contract for the facility
An ownership or lease contract must be available for the facility in which the project will be established, in addition to providing historical proof of the contract from the real estate registry.
Electricity, gas, or water receipt
We should also not forget that a receipt must be provided proving the availability of electricity, gas, or water services in the facility. It is worth noting that this receipt is used for the purposes of documenting and proving the facility.
A copy of the tax card or certificate
The tax card is one of the most important documents required to obtain a commercial register, as it is issued by the Zakat Tax and Customs Authority.
License to practice a commercial activity
A license to practice a commercial activity can be defined as the document that proves the possibility of practicing commercial activity and is extracted from the Chamber of Commerce.
Request for commercial register
You must fill out the application form that contains data for commercial register, such as the name of the company owner or his agent, the type of company, its trade name and title, in addition to the purpose of its establishment, its main address and its branches, if any, as well as its register number, its capital, etc., and other details. It is worth noting that the application is filled out at the register office.
Notice
The originals of all the above-mentioned documents must be brought for review by the concerned authority, and not only the photos must be submitted. Additional copies of the photos must also be prepared to be submitted when needed.
The importance of commercial register
Commercial register is a vital tool to ensure that the commercial process runs smoothly, and it is of great importance to the merchant and the state alike. Below, we review some of the main points that highlight its importance to the merchant:
Legalizing the commercial project
This record contributes to providing legal recognition for the commercial project, making it eligible to conduct business officially and legally, thus enhancing credibility and ensuring the protection of the merchant’s rights in the event of a legal dispute.
Legal protection
Failure to establish a commercial register is a risk that will result in fines and legal penalties. With the presence of this register, the merchant has the duty to provide the required information and comply with legal and tax requirements, which protects him from legal accountability and maintains the integrity of his business.
Get financing
It is also a reliable commercial certificate that confirms the existence and activity of the commercial entity, as its presence makes it easier for the merchant to obtain financing from banks and other financial entities, as it is evidence of his ability to repay loans and his financial obligations.
Verify business information.
A merchant or any other person can inquire about the commercial register of any merchant or business organization he wishes to deal with, and thus this provides an opportunity to verify the authenticity of commercial information and financial and legal records related to these entities, which helps to make informed business decisions and reduce risks.
Official accreditation
This record is one of the official documents that is relied upon in governmental and non-governmental procedures. For example, your commercial record may be requested in government licensing processes, commercial contracts, and tenders, which confirms the legitimacy and legality of the commercial process.
Steps to extract a commercial register
After specifying the documents required to extract the commercial register, the following steps can be followed to complete the process:
- Accessing the Saudi Business Center platform: You must visit the Saudi Business Center website and access the commercial register extraction page.
- Select electronic services, then click on Issuing a Commercial Register (institutions).
- Login: You can log in to the platform using your website account or through national access.
- This will show you the login page, as shown in the image below.
- Entering the organization’s data: You will need to choose whether you are the owner of the organization or an authorized representative. Choose that you are the owner of the organization.
- Choose the type of trade name: You will then find three options: a reserved trade name, an existing one, and a personal trade name, so choose what suits you.
- Enter the business activity. Then fill in all the data related to the organization’s business activity.
- Fill in the register and financial year data: You will be asked to enter the organization’s financial data, such as the current financial year, expected profits, number of employees, etc.
- Acknowledgment of the accuracy of the data entered: Before submitting the application, you will need to confirm the accuracy of the data you provided and agree to the terms and conditions.
- Submitting the application: After filling out all the required data and verifying its accuracy, you can click on the “Submit Application” button to send your application for review.
Specify a project facility with a proven contract.
You must specify the facility in which you want to establish your project, as this facility may be yours, or you can rent it, and you must have a document proving ownership or rent and specifying the duration, and you must register this document in the Land Registry Office, and you must also have a receipt. Water, electricity, or gas in the name of the facility.
Obtaining a tax card from the Tax Authority
After determining the facility for the project and installing it in the land registry office, you must go to the Zakat Tax and Customs Authority to obtain the tax card. It may take about one month to issue the tax card, but you can obtain a temporary tax certificate ten days after submitting the application to obtain the tax card.
Obtaining a certificate of practice for the activity from the Chamber of Commerce
After obtaining the tax card from the Zakat Tax and Customs Authority, you must go to the Chamber of Commerce to obtain a certificate for practicing commercial activity, bring the ID card, and a copy of the establishment’s contract whose date is recorded in the real estate registry.
Request a commercial register from the office.
After obtaining the tax certificate and the commercial activity certificate, you must go to the commercial registry office and submit an application to obtain a commercial register, as the application contains the data of the company owner or his agent, the type of company, as well as the name of the company, the purpose of its establishment, its main address, and its branches. In addition to its register number, capital, etc., you must also fill out the form provided by the office.
Pay the required fees.
When submitting a commercial register application, you will need to pay the required fees, so you can check the fees set by your local commercial register office to find out the exact fees.
Review the application and documents.
After submitting the application and paying the fees, the commercial register office reviews the application and the documents submitted. If you meet all the requirements and submit the correct documents, your application will be approved without the slightest problem.
Receipt of commercial register
After your application is approved and the process is completed, you will be able to receive a commercial register for your company. Do not forget that you must have a copy of this register in your workplace and be able to view it upon request.
How do I open a commercial register in the Kingdom?
Through the Saudi Business Center platform, the Saudi Ministry of Commerce has made it possible to issue a commercial register electronically to practice commercial activities as quickly as possible.
Conclusion
A commercial register is a document that promotes trust between interested parties, whether they are consumers, buyers, partners, or investors. It contributes to achieving credibility and transparency and enhances the chances of success for a business. Moreover, it is a vital tool for verifying the validity of companies’ commercial and financial information. Through it, the public, regulatory authorities, and investors can evaluate the performance, reliability, and companies’ compliance with financial laws and legislation. It is worth noting that it contributes to facilitating business operations and providing a fair competitive environment for businesses. It reduces counterfeiting and commercial fraud and ensures that companies and individuals who adhere to laws and professional standards are dealt with.
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After knowing what commercial register is, the conditions, and how to obtain it, try Qoyod now for free for 14 days, and you will not regret it. It is an accounting program that everyone prefers.
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