Saudi Banks Upgrade Systems to Align with New Commercial Registry Regulations

20/05/2025 07:12 AST

The Saudi Central Bank has instructed all banks and financial institutions in the Kingdom to update their internal technical systems to comply with the newly implemented Commercial Registry and Trade Names Laws.

The updates, which took effect on April 3, are designed to streamline business registration processes, enhance the protection of trade names, and improve the overall ease of doing business in Saudi Arabia.

The Central Bank's directive also includes raising awareness among bank employees, particularly those in commercial departments and branch offices, of the key changes in the new regulatory framework.

The reforms are part of a broader national effort to modernize the Kingdom's legislative infrastructure in line with Vision 2030, keeping pace with rapid economic and technological transformation.

According to information obtained by Asharq Al-Awsat, the Central Bank received a formal communication from the Minister of Commerce outlining several core updates. Most notably, the ministry has adopted a unified national identification number, beginning with the digit "7", as the sole reference number for business entities.

The issuance of individual commercial registration numbers has been discontinued, and expiration dates for registration certificates have been removed. Instead, businesses are now required to confirm their registry information annually to avoid suspension.

Another significant reform is the cancellation of secondary commercial registrations. Under the new system, a single commercial registry will cover all business activities of a company across the Kingdom.

Existing branch records must be consolidated within five years. Failure to submit the annual confirmation of registry data within 90 days of its due date will result in the suspension of the registry, which will be treated as equivalent to expiration.

The city designation in commercial records has also been eliminated, with the national address now serving as the primary geographic identifier. Verification of registry data can be conducted through the Ministry of Commerce's official website, the "Wathiq" platform, or by using the QR code printed on the registry certificate.

Commercial registry activity has surged following these reforms. By the end of last year, over 416,000 new registrations were issued, compared to approximately 250,000 in January 2023.

The total number of active registries in Saudi Arabia now exceeds 1.6 million. Officials credit the changes with improving data accuracy, reducing administrative burdens, and promoting transparency across the business landscape.

Asharq Al Awsat