Article 6 of the Saudi Commercial Books Law
المادة 6 من نظام الدفاتر التجارية
The article requires the merchant to keep exact copies of all commercial correspondence and documents, outgoing and incoming, in a regular way that makes it easy to review entries and verify profits and losses.
Official text (Arabic)
This article has not been amended since the law was issued.
على التاجر أن يحتفظ بصورة طبق الأصل من جميع المراسلات والوثائق المتعلقة بتجارته الصادرة منه والواردة إليه، ويكون الحفظ بطريقة منتظمة تسهل معها مراجعة القيود الحسابية وتكفل عند اللزوم التحقق من الأرباح والخسائر.
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 6 explained in plain English
It is not enough for a merchant to keep commercial books; this article also requires them to keep the correspondence and documents relating to their trade.
What must be kept?
- An exact copy of all correspondence and documents relating to their trade.
- Whether sent by them to others or received by them from others.
How must it be kept?
The article requires that the keeping be done in a regular way, and the test is that it achieves two things:
- It makes it easy to review the accounting entries recorded in the books.
- It ensures, when needed, that profits and losses can be verified.
The correspondence and documents are the support on which the entries in the books rest, and keeping them organized allows them to be consulted to confirm the accuracy of the figures. The article does not prescribe a particular form of organization; it sets the purpose that it must achieve.
This article is linked to Article 8, which sets the period for keeping this correspondence and these documents along with the books. It is also linked to Article 5, which regulates the general ledger, because the documents kept help in reviewing the entries carried over to it.
If a dispute arises over commercial documents or how they are kept, it is best to consult a lawyer specializing in commercial and company cases.
Practical example
An import establishment in Jeddah receives invoices from its suppliers and sends price quotations to its customers by email. It must keep exact copies of these invoices, quotations and correspondence, arranged in a way that lets it or an auditor refer to them easily to verify the entries and its profits and losses.
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 6 of the Saudi Commercial Books Law
Must a merchant keep copies of the correspondence they send?
Yes. They must keep an exact copy of all correspondence and documents relating to their trade, both sent by them and received by them.
Is there a specific way to keep commercial documents?
The article requires the keeping to be regular, so that it makes it easy to review the accounting entries and ensures profits and losses can be verified, without prescribing a particular form.
How long must commercial correspondence be kept?
This article does not set the period; Article 8 of the Law deals with it.
More articles on Keeping Books and Commercial Correspondence
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.