RIYADH: Saudi Arabia has stepped up its efforts to boost entrepreneurship in the country, with the Commerce Ministry exempting micro and small businesses with annual revenues below SR10 million ($2.66 million) from auditor’s requirements.
In a tweet, the ministry stated that companies with total assets not exceeding SR10 million and workforce less than 49 are also exempted.
The initiative aims to ease regulatory burdens and support the growth of micro and small businesses in the Kingdom.
In fact, the new Companies’ Law enabled over 2,000 institutions to transition into companies in the first quarter of 2023, supporting efforts to revise and modernize the Kingdom’s trade and investment legislation and laws.
The new system, launched on Jan. 19 by the Ministry of Commerce and the Capital Market Authority, saw the establishment of 2,048 companies in the first three months.
Of these, 2,011 transitioned from an institute into a company, according to the criteria specified by the ministry.
Additionally, 20 companies and 14 establishments converted into joint-stock companies, even as three were listed publicly during the first quarter of 2023.
“The new Companies’ Law will enable companies to grow, expand, address challenges, and keep on top of economic trends in the Kingdom at all levels. This is essential for realizing the goals and implementing the plans in the Vision 2030 programs,” noted the ministry on its official website.
The system aims to enhance corporate sustainability and support investment in SMEs by facilitating regulatory procedures and requirements.
It also seeks to achieve greater market diversity by adding new corporate entities, raising flexibility in systems, preserving customers’ rights, reducing disputes and ensuring fair treatment among stakeholders.
