Article 2 of the Saudi Commercial Books Law
المادة 2 من نظام الدفاتر التجارية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز أن تدون البيانات الخاصة بالدفاتر التجارية عن طريق الحاسب الآلي، وذلك بالنسبة للمؤسسات والشركات التي تستخدم الحاسب الآلي في حساباتها، وتحدد اللائحة التنفيذية الإجراءات والقواعد التي تكفل صحة وسلامة البيانات التي يثبتها الحاسب الآلي.
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 2 explained in plain English
This article allows the data of the commercial books to be recorded by computer instead of in paper books, but it limits this permission to establishments and companies that use computers for their accounts.
In practical terms, this means:
- An establishment that runs its accounts by computer may record on it the data of the books that Article 1 requires (the original journal, the inventory book and the general ledger).
- This is a permission, not an obligation; the article says "may".
- Electronic recording does not remove the conditions of Article 1: the books must remain regular and in Arabic and must show the financial position accurately.
The article does not detail how the validity and integrity of data recorded electronically are ensured; it refers this to the Implementing Regulations, which set the necessary procedures and rules. Anyone who wants to rely on a computer should therefore consult the Implementing Regulations to learn these procedures, because the article itself does not state them.
This provision is linked to Article 3, which explains what is entered in the original journal, since the entries required stay the same whether recorded on paper or electronically.
If an establishment has questions about whether its electronic accounting system is acceptable, it can consult a lawyer specializing in commercial and company cases or a certified accountant.
Practical example
A food distribution company in Jeddah uses accounting software to manage its accounts. It may record the data of its commercial books in this software instead of in paper books, provided it complies with the procedures and rules set by the Implementing Regulations to ensure the validity and integrity of the data.
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 2 of the Saudi Commercial Books Law
May a company keep its commercial books on a computer?
Yes. This is permitted for establishments and companies that use computers for their accounts.
What are the conditions for accepting electronic commercial books?
The article does not state them; it refers to the Implementing Regulations to set the procedures and rules that ensure the validity and integrity of the data.
Is recording by computer mandatory?
No. The article provides a permission, not an obligation.
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 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.
- Article 16
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.
ينشر هذا النظام بالجريدة الرسمية ، ويعمل به بعد ستة أشهر من تاريخ نشره.
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.