Article 12 of the Saudi Commercial Books Law
المادة 12 من نظام الدفاتر التجارية
The article punishes every violation of the Commercial Books Law, or of the regulations and decisions issued to implement it, with a fine of not less than SAR 5,000 and not more than SAR 50,000.
Official text (Arabic)
This article has not been amended since the law was issued.
كل مخالفة لأحكام هذا النظام أو اللوائح والقرارات الصادرة تنفيذا له يعاقب مرتكبها بغرامة لا تقل عن خمسة آلاف ريال ولا تزيد على خمسين ألف ريال.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 12 explained in plain English
This article is the penalty article of the Commercial Books Law.
What act is punished? Every violation of:
- The provisions of the Law itself, such as not keeping the books that Article 1 requires, or not keeping the books and documents for the period Article 8 requires.
- The regulations and decisions issued to implement the Law.
What is the penalty? A fine with two limits:
- A minimum of SAR 5,000.
- A maximum of SAR 50,000.
The text says "every violation", meaning the penalty attaches to each violation. The article does not give criteria for setting the amount of the fine between the two limits, nor a special rule for repeat offences, so this should not be assumed.
How is it connected to other articles?
- Article 11: violations are detected by employees whom the Minister of Commerce appoints by decision.
- Article 13: the Board of Grievances has jurisdiction to impose the penalties provided for in the Law.
The fine does not remove the underlying obligations; the merchant remains bound to keep and preserve the books under the Law.
Anyone to whom a violation of this kind is attributed is advised to consult a lawyer specializing in commercial and company cases to learn their position.
Practical example
It emerged that a trading establishment in Madinah, whose capital exceeds SAR 100,000, does not keep the inventory book. This is a violation of the provisions of the Law, and its perpetrator is punished with a fine of not less than SAR 5,000 and not more than SAR 50,000, imposed by the Board of Grievances under Article 13.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 12 of the Saudi Commercial Books Law
What is the fine for violating the Commercial Books Law?
A fine of not less than SAR 5,000 and not more than SAR 50,000 for each violation.
Does the penalty cover violations of regulations and implementing decisions?
Yes. It covers every violation of the provisions of the Law or of the regulations and decisions issued to implement it.
Who imposes the fine for a commercial books violation?
Article 13 provides that the Board of Grievances has jurisdiction to impose the penalties provided for in the Law.
More articles on Violations of the Commercial Books Law
- Article 11
The article assigns the detection of violations of the Commercial Books Law and the decisions issued to implement it to employees appointed by decision of the Minister of Commerce.
يتولى ضبط ما يقع من مخالفات لأحكام هذا النظام والقرارات الصادرة تنفيذا له موظفون يصدر بتعيينهم قرار من وزير التجارة.
- Article 13
The article makes the Board of Grievances the body with jurisdiction to impose the penalties provided for in the Commercial Books Law.
يختص ديوان المظالم بتوقيع العقوبات المنصوص عليها في هذا النظام.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.