Article 21 of the Saudi Commercial Register Law
المادة 21 من نظام السجل التجاري · الفصل الخامس: المخالفات
This article defines the violations of the Commercial Register Law punishable by a fine of up to SAR 50,000, which may be doubled for repeat violations within 3 years.
Official text (Arabic)
This article has not been amended since the law was issued.
1- دون إخلال بأية عقوبة ينص عليها نظام آخر، يعاقب بغرامة لا تزيد على (خمسين) ألف ريال:
أ- من قدم بيانات غير صحيحة لقيدها في السجل التجاري.
ب- التاجر الذي لم يلتزم بأحكام الفقرة (1) من المادة (الخامسة) والمواد: (العاشرة) و(الحادية عشرة) و(السادسة عشرة) من النظام.
ج- التاجر الذي لم يلتزم بالأحكام التي تحددها الوزارة بناءً على الفقرة (2) من المادة (السادسة) من النظام.
2- يجوز أن تضاعف الغرامة في حال التكرار. ويكون التكرار بارتكاب المخالفة نفسها الصادر بثبوتها قرار نهائي خلال (ثلاث) سنوات من تاريخ صدور القرار.
3- يراعى في تحديد الغرامة جسامة المخالفة وظروفها، وملابساتها، وآثارها، وحجم المنشأة. وتحدد اللائحة جدول تصنيف المخالفات.
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 21 explained in plain English
This is the main penalty article of the Commercial Register Law. It sets a fine of up to SAR 50,000, without prejudice to any penalty provided in another law, on:
- Anyone who submitted incorrect data for registration in the commercial register; this violation covers any person who submitted such data, not only the merchant.
- A merchant who failed to comply with paragraph 1 of Article 5, which requires every merchant to register in the commercial register, or with the provisions of Articles 10, 11 and 16 of the Law.
- A merchant who failed to comply with the provisions set by the Ministry under paragraph 2 of Article 6, which concern bank account details and other data that must be submitted after registration.
Repeat violations: the fine may be doubled in case of repetition. Repetition means committing the same violation for which a final decision establishing it was issued, within 3 years of the date of that decision.
Setting the fine: the maximum is SAR 50,000, and in setting the amount the seriousness of the violation, its circumstances, its surroundings, its effects and the size of the business are taken into account. The Regulations set out the violations classification table.
Who detects violations? Article 22 provides that violations are detected by employees designated by a decision of the Minister who have law enforcement capacity.
This article does not prevent the application of more severe or different penalties provided in another law. Anyone who has received a violation decision can consult a lawyer specializing in commercial and company matters.
Practical example
A final decision was issued establishing a violation by an establishment in Riyadh for not registering in the commercial register. If the establishment commits the same violation again within 3 years of the date of that decision, the fine may be doubled, taking into account the seriousness of the violation, its circumstances and the size of the business in setting it.
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 21 of the Saudi Commercial Register Law
What is the fine for a commercial register violation?
A fine of up to SAR 50,000, without prejudice to any penalty provided in another law, which may be doubled in case of repetition.
What is the penalty for submitting incorrect data to the commercial register?
Anyone who submitted incorrect data for registration in the commercial register is punished by a fine of up to SAR 50,000.
When is a commercial register fine doubled?
It may be doubled when the same violation, for which a final decision establishing it was issued, is committed within 3 years of the date of the decision.
How is the amount of the fine determined?
The seriousness of the violation, its circumstances, its surroundings, its effects and the size of the business are taken into account, and the Regulations set the violations classification table.
Articles this article refers to
- Article 5
This article requires every merchant to register in the commercial register, and allows the Ministry to exempt some categories of merchants under rules set in the Regulations.
1- يجب على كل تاجر القيد في السجل التجاري. 2- للوزارة -بناءً على ضوابط تحدد في اللائحة- استثناء بعض فئات التجار من القيد في السجل التجاري وتحديد الآثار المترتبة
- Article 6
This article sets out the data a registration application must contain, and allows the Ministry to set in the Regulations rules on bank account details and other data to be submitted after registration.
1- مع مراعاة الأنظمة ذات العلاقة، يجب أن يشتمل طلب القيد على البيانات الآتية: أ- اسم طالب القيد وعنوانه، ورقم هويته. ب- الاسم التجاري الذي يرغب التاجر في مزاولة
- Article 10
This article requires the merchant to update his data registered in the commercial register within 15 days of any change or amendment to it.
يجب على التاجر، عند حدوث أي تغيير أو تعديل على البيانات المقيدة في السجل التجاري، أن يحدّثها خلال (خمسة عشر) يومًا من حدوث ذلك التغيير أو التعديل.
- Article 11
This article requires the merchant to submit to the registrar every year a confirmation of the data registered in the commercial register, as the Regulations specify.
يجب على التاجر أن يقدم سنويًّا إلى المسجل تأكيدًا للبيانات المقيدة في السجل التجاري، وذلك وفقًا لما تحدده اللائحة.
- Article 16
This article requires the merchant to display his commercial register details in a clear place in the store where he carries on his business, as the Regulations specify.
يجب على التاجر عرض بيانات القيد في السجل التجاري في مكان واضح في المتجر الذي يزاول فيه أعماله، وذلك وفقًا لما تحدده اللائحة.
More articles on Commercial Register Violations and Penalties
- Article 23
This article provides for forming one or more committees by the Minister's decision to examine violations and impose penalties, and allows the Minister to specify violations for which penalties are imposed directly.
تكوّن بقرار من الوزير لجنة (أو أكثر) من أعضاء لا يقل عددهم عن (ثلاثة)، ويرأسها ذو تأهيل نظامي، وتختص بالنظر في المخالفات وإيقاع العقوبة المنصوص عليها في المادة
- Article 24
This article allows the committee, when a violation listed in Article 21 is established, to take, in addition to or instead of the penalty, a warning, preventive or corrective steps, or a correction of data.
إذا ثبت أن التاجر قد ارتكب أيًّا من المخالفات الواردة في المادة (الحادية والعشرين) من النظام، فيحق للجنة أن تتخذ -بالإضافة إلى العقوبة المقررة أو بدلًا عنها- أي
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.