A penalty of up to 25 thousand Saudi riyals for not filing company lists

Dr. Majid Al-Qasabi, Minister of Commerce, issued a ministerial decision regarding direct penalties for violators who do not deposit financial statements within the regulatory period.

The penalty is a fine of up to 25,000 riyals, which is doubled by 50% in the event of a repeat violation.

A draft decision to punish companies that do not comply with submitting financial statements

The draft resolution, which is being circulated on the “Estalaa” platform, aims to punish companies immediately if the financial statements are not submitted within the regulatory period.

The decision includes details of the direct penalties that will be applied to those who fail to comply with submitting financial statements in accordance with the provisions of the Companies Law and its executive regulations.

The draft resolution includes a breakdown of fines based on the type of company, as fines vary based on this difference.

For unlisted companies whose capital is less than 500 thousand riyals, a fine of 8 thousand riyals for non-deposit is imposed, while the fine is 12 thousand riyals when their capital exceeds 500 thousand riyals.

Fines resulting from not depositing the financial statements of joint-stock companies in the financial market

Joint stock companies listed on the financial market are required to deposit financial statements within the specified time period, and if they do not comply with this requirement, they will be fined.

Companies with a capital of less than 5 million riyals shall bear a fine of 15,000 riyals, while companies with a capital of more than 5 million riyals shall bear a fine of 25,000 riyals.

The financial statements include all financial information that shows profits and losses, financial position and cash flow, and the responsibility for filing them falls on the president and director of the company and the chairman of the board of directors.