Modifying the commercial registration activity of companies in Saudi Arabia, step by step

In light of the rapid developments witnessed by the business sector in the Kingdom of Saudi Arabia, amending a company's commercial registration activity has become an urgent necessity, not just an administrative option. Today's companies require a great deal of flexibility to keep pace with market and legislative changes and expand their business activities in line with the ambitious Saudi Vision 2030, which encourages innovation, economic diversification, and attracting local and foreign investment.

Amending the business activity listed in the commercial registration is one of the most important regulatory measures that reflects this flexibility. Through this step, companies can open new horizons for growth, abandon activities that are no longer profitable, or keep pace with developing markets and new opportunities.

In this article, we will take you through a detailed tour to learn about the importance of amending the commercial registration activity, the steps involved in implementing it, the required documents, and the most common questions related to this procedure.

What is a commercial registration and why is it important to amend it?

The commercial registration is the official document that proves a company's legal existence and determines the type of its commercial activity in the Kingdom. This register is issued by the Ministry of Commerce and contains essential information, including: the company's name, type, activity, partners or shareholders, capital, and the geographical location of the company's headquarters.

Amending the commercial register, particularly the activity, is a pivotal step in company management, enabling it to:

Practice new activities legally.
Comply with updated legislation and regulations.
Enhance transparency for government agencies and investors.
Avoid fines and violations for engaging in unlicensed activities.
When does a company need to amend its commercial activity?

There are several situations that may prompt a company to amend its commercial activity in its official register, the most prominent of which are:

Market expansion: Adding a new activity reflects the company's expansion into new areas of work.
Changing the primary activity: When a company decides to completely change its field of work due to market conditions or a desire to increase profitability.
Specialization and reducing activities: Sometimes companies prefer to focus on a single primary activity.
Licensing requirements: Some activities require updating the commercial register to obtain the necessary licenses.
Merger or Separation: When two companies merge or a company splits into independent entities, it may be necessary to modify activities.
Steps to Modify a Business Activity in the Commercial Register

The Saudi Ministry of Commerce has provided advanced electronic services through the "Abr" platform to facilitate the process of modifying a business activity without the need to visit branches. Here are the basic steps:

Log in to the "Abr" electronic platform: Through the Ministry of Commerce's official website.
Select the "Adjust Commercial Register" service: From the list of electronic services.
Log in with the establishment's account: Using the unified national access credentials.
Select the type of modification required: Adding an activity, deleting an activity, or modifying the description.
Attach supporting documents: These include:

A copy of the current commercial register.
The minutes of the meeting of the partners or board of directors approving the modification.
A copy of the necessary licenses if the new activity is subject to a competent licensing authority.
Pay the statutory fees electronically.
Review and approve the application from the Ministry.
Receive a copy of the modified commercial register electronically.
Conditions and Documents Required for Amending a Business Activity

To ensure that the amendment request is accepted without delay, the following conditions must be met and the necessary documents must be provided:

Condition/Document Explanation
Minutes of the partners' meeting proving the unanimous approval of the amendment.
The current commercial register to prove the current official data.
The company's contract or articles of association, in some cases requiring accompanying legal updates.
Licenses for the new activity if the activity is subject to regulatory bodies outside the Ministry of Commerce.
National ID card or civil registry of the partners for documentation.
Amendment fees vary depending on the type of activity and the number of amendments.
Business Activity Amendment Fees and Procedure Duration

Fees vary depending on the type of activity added or modified and the number of activities. The cost typically ranges from:

SAR 500 to SAR 1,500 per activity.
May increase if additional approvals from external parties are required.

The expected time to complete the amendment is:

3 to 5 business days if there are no additional comments or requests.
This may extend to a week or more if special licenses or missing documents need to be reviewed.
Legal Advice to Ensure a Successful Amendment
Seek the assistance of a lawyer specializing in Saudi corporate regulations to ensure the validity of procedures and documents.
Ensure that the new activity is included in the National Directory of Economic Activities (ISIC) approved by the Ministry of Commerce.
Review the licensing requirements for the new activity before submitting the application.
Keep digital and printed copies of all documents after the amendment.

Amending a business activity in the commercial register is not just a routine procedure; it is a step that reflects the company's professionalism and readiness for development and competition. With the ease of electronic procedures available today through the "Abr" platform, this process has become smoother and more flexible.

Making the right decision regarding activity amendment and implementing it in the correct legal manner helps your company achieve strategic goals, avoid legal problems, and open up new avenues for growth and expansion in the Saudi market.

Top Frequently Asked Questions About Amending a Business Activity

Is it possible to amend a business activity without canceling the old activities?
Yes, you can keep the old activities and add a new one, or choose to delete activities you no longer practice.

Do there are activities that require special approvals?
Yes, some activities require approvals from authorities such as the Communications and Information Technology Commission, the Food and Drug Authority, the Capital Market Authority, and others.

What is the penalty for engaging in an activity not listed in the register?
This is a regulatory violation, and financial fines may be imposed on the company, and the violating activity will be immediately suspended.

Can the activity be modified for more than one branch at the same time?
A modification application must be submitted.

For each branch separately according to its commercial register, or amendment within the main register if the branches are under the same activity