COMMERCIAL BOOKS LAW

HIGHLIGHTS OF THE COMMERCIAL BOOKS LAW IN SAUDI ARABIA

• RECORD KEEPING: Businesses are required to maintain accurate and detailed records of all financial transactions, inventories, and other relevant business activities. 
• MERCHANT OBLIGATIONS: Every merchant must maintain commercial books appropriate to the nature and scope of their trade, ensuring these books accurately reflect their financial status and the rights and obligations related to their trade. These books must be well-organized and kept in Arabic. 
• Retention Period: Commercial records must be retained for a minimum of 10 years.
• Audit Requirements: Specifies the frequency and scope of mandatory audits for businesses. 
• Penalties for Non-Compliance: Defines penalties, including fines and legal actions, for failing to adhere to record-keeping and reporting requirements.
• Transparency and Reporting: Mandates regular and transparent financial reporting to the appropriate governing authorities.

ISSUER OF THE COMMERCIAL BOOKS LAW IN SAUDI ARABIA

The Commercial Books Law in Saudi Arabia, issued by the Ministry of Commerce, requires that commercial books conform to the specified format and have numbered pages.

WHO IS SUBJECT TO THE COMMERCIAL BOOKS LAW IN SAUDI ARABIA

• Businesses and Corporations: All registered businesses and corporate entities engaged in commercial activities within Saudi Arabia.
• Partnerships: General and limited partnerships conducting business in Saudi Arabia.
• Sole Proprietors: Individual business owners engaged in commercial activities in Saudi Arabia.
• Non-Profit Organizations: Certain non-profit entities engaging in commercial transactions, as specified under the law.
• Foreign Companies: Any foreign entities conducting business within Saudi Arabia.
• Traders: Individual traders and merchants involved in buying and selling goods and services within Saudi Arabia.