ع
The Ministry of Commerce has called on all companies in the Kingdom to commit to preparing and filing their financial statements without delay. According to a ministry statement, this practice enhances administrative performance, increases transparency and builds the confidence of investors, shareholders, creditors and banks. It also allows regulatory bodies to carry out their oversight functions more effectively. The emphasis forms part of ongoing efforts to strengthen corporate governance.
Responsibility for the preparation and filing of financial statements varies by company structure, the ministry explained. In joint-stock companies the board of directors holds the duty while managers or boards of managers are responsible in limited liability companies. For limited partnerships the manager or partners assume the role if no manager is appointed. The ministry’s clarification aims to ensure all parties understand their statutory obligations.
Under Paragraph 2 of Article 17 of the Companies Law, “Financial statements must be prepared for the company at the end of each fiscal year in accordance with the accounting standards adopted in the Kingdom, and these statements must be filed in accordance with the regulations within 6 months from the end of the fiscal year, as specified by the provisions of the law,” the ministry stated. This requirement applies uniformly to all company types. The six-month window provides sufficient time for accurate preparation while maintaining timely disclosure for stakeholders.
Preparing and filing the statements allows companies to evaluate their performance, strengthen internal oversight and support decision-making with reliable data, according to the ministry. The process measures operational efficiency across departments and highlights areas requiring attention. Such compliance ultimately contributes to more robust business management.
For investors and shareholders the timely availability of financial statements enables assessment of profitability, evaluation of risks and informed comparisons between investment options, the ministry noted. Creditors and banks benefit by gaining insights into repayment capacity, liquidity and adherence to financing terms. Regulatory authorities can better verify compliance, which supports broader investor protection and economic stability. The ministry has identified the responsible parties based on each company’s legal form.
Companies are required to submit their financial statements electronically through the Qawaem platform operated by the Ministry of Commerce and the Saudi Business Center, the ministry said. This digital system streamlines the filing process and ensures direct deposit of documents. The platform has been positioned as the primary channel for fulfilling this legal requirement.
The current reminder follows Ministerial Decision No. 236 issued in May 2026 by Commerce Minister Dr. Majid bin Abdullah Al-Qasabi, which introduced direct penalties for late filing as published in the Umm Al-Qura Gazette, according to the ministry. The decision replaced an earlier framework and sets fines based on company type, capital and number of managers, with warnings only for 2024 violations and a 50 percent increase for repeat offences. Businesses have been urged to meet the deadlines to avoid these sanctions.
