Article 16 of the Saudi Commercial Books Law
المادة 16 من نظام الدفاتر التجارية
The article provides that the Commercial Books Law is published in the Official Gazette and takes effect six months after the date of its publication.
Official text (Arabic)
This article has not been amended since the law was issued.
ينشر هذا النظام بالجريدة الرسمية ، ويعمل به بعد ستة أشهر من تاريخ نشره.
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 16 explained in plain English
This article is the closing article of the Law, and it regulates two matters:
- Publication: the Law is published in the Official Gazette. Publication is the means by which the Law is announced to people.
- Taking effect: the Law takes effect six months after the date of its publication, not from the date it was issued and not from the day of publication itself.
What does this mean? The Law places practical obligations on merchants, such as keeping the original journal, the inventory book and the general ledger under Article 1, and preserving correspondence and documents under Articles 6 and 8. These obligations did not begin on publication, but after the six-month period the article set had passed. The article does not give the reason for this grace period.
The practical effect:
- Before the period expired, the provisions of the Law were not in force.
- After it expired they became binding, including the penalties provided for in Article 12.
The article does not state the date of publication itself, so the day the Law takes effect cannot be determined from its text alone. It is linked to Article 15, which requires the Minister of Commerce to issue the regulations and decisions needed for implementation.
If you need to know whether the Law applies to an old event, you can consult a lawyer specializing in commercial and company cases.
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 16 of the Saudi Commercial Books Law
When does the Commercial Books Law take effect?
Six months after the date of its publication in the Official Gazette.
Where is the Commercial Books Law published?
In the Official Gazette, according to the text of the article.
Does the Law take effect from the day it is published?
No. It takes effect after six months have passed from the date of publication.
More articles on Keeping Commercial Books
- Article 1
The article requires every merchant to keep regular commercial books in Arabic that show their financial position, at least the original journal, the inventory book and the general ledger, and exempts a merchant whose capital does not exceed SAR 100,000.
يجب على كل تاجر أن يمسك الدفاتر التجارية التي تستلزمها طبيعة تجارته وأهميتها بطريقة تكفل بيان مركزه المالي بدقة، وبيان ما له من حقوق وما عليه من التزامات متعلقة
- Article 2
The article allows establishments and companies that use computers for their accounts to record commercial books data on them, and leaves it to the Implementing Regulations to set rules ensuring the validity and integrity of the data.
يجوز أن تدون البيانات الخاصة بالدفاتر التجارية عن طريق الحاسب الآلي، وذلك بالنسبة للمؤسسات والشركات التي تستخدم الحاسب الآلي في حساباتها، وتحدد اللائحة التنفيذي
- Article 7
The article requires the commercial books provided for in the Law to follow the form set by the Ministry of Commerce and to have numbered pages.
يجب أن تكون الدفاتر المنصوص عليها في هذا النظام وفقا للنموذج الذي تحدده وزارة التجارة على أن تكون صفحات هذه الدفاتر مرقمة.
- Article 14
The article repeals Articles 6, 7, 8, 9 and 10 of the Commercial Court Law issued by Order No. 32 dated 15/1/1350 AH, and every provision that conflicts with the Commercial Books Law.
تلغى أحكام المواد (6 ،7 ،8 ،9 ،10) من نظام المحكمة التجارية الصادرة بالأمر رقم (32) وتاريخ 15 / 1 / 1350 هـ، وكل حكم يتعارض مع أحكام هذا النظام.
- Article 15
The article requires the Minister of Commerce to issue the regulations and decisions needed to implement the Commercial Books Law.
على وزير التجارة إصدار اللوائح والقرارات اللازمة لتنفيذ 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.