Changing the activity of the e...

Changing the activity of the establishment in Saudi Arabia is one of the important administrative processes that business owners and institutions need to keep pace with changes in the market and grow and expand their business scope. This process requires the availability of some important conditions to ensure that the process of changing the activity proceeds without facing any obstacles and avoiding any legal or operational problems.

When does the establishment need to change its activity?

There are many cases in which the establishment needs to change its activity, the most prominent of which are:

1- When the practiced activity does not comply with the requirements of the current market.

2- The desire of the establishment owner to grow and expand.

3- Issuance of new regulations that require modifying the activity to be compatible with the applicable regulations.

4- The establishment has new strategic plans that require a change in the activity to keep pace with the goals and future vision of the establishment.

5- Merging the establishment with another or acquiring new businesses that require a change in the activity.

Conditions for changing the activity of the establishment in Saudi Arabia

To change the activity, some important conditions must be met, including:

1- The establishment has a valid commercial register.

2- The Zakat and Income Certificate must be valid and updated in the establishment's data at the Ministry.

3- The activity registered in the Ministry must be consistent with the actual activity practiced by the establishment to avoid any legal accountability.

4- Ensure that the activity to be practiced complies with the requirements of localization.

5- The establishment owner or authorized person must have powers in the Ministry of Human Resources and Social Development.

6- There are no violations or debts on this establishment.

7- Pay all fees required for the process before applying.

8- Obtain approval from the Ministry of Commerce to change the activity in the commercial register.

Documents required to change the establishment's activity

Before proceeding to change the establishment's activity, some important documents must be prepared, which are:

1- A copy of the new commercial register after the amendment.

2- Submit an official authorization if the application is submitted by an authorized agent or employee.

3- An updated certificate from the Social Insurance.

4- Submit a certificate proving that there are no violations or financial dues on the facility.

Costs associated with the process of changing the facility's activity

There are many costs associated with the process of changing the facility's activity in Saudi Arabia, and these costs usually vary depending on the type of activity and the procedures it requires. These costs include:

The most important tips before changing the facility's activity

1- Ensure that the new activity is consistent with the requirements of the Saudi market and also in line with the regulations and laws.

2- Verify that the commercial register is valid and that all the licenses required to practice the new activity are available.

3- Consider the extent to which this change will affect the facility's vision and goals.

4- Study the impact of this change on the current workforce and that their skills are appropriate for practicing the new activity.

5- Planning to change the commercial and marketing identity if changing the activity requires updating the trade name and logo, which requires a change in billboards, official documents, and the website.

The most important frequently asked questions about changing the facility's activity in Saudi Arabia.

1- Is the number of employees affected when changing the activity?

It depends on the nature of the new activity, there may be additional requirements related to the number of employees or their qualifications.

2- Does changing the activity require closing the facility?

No, changing the activity does not require closing the facility in Saudi Arabia, but some procedures must be followed to update the business activity officially.

3- Does changing the activity require the approval of the Ministry of Commerce?

Yes, hanging the business activity requires the approval of the Saudi Ministry of Commerce, as the commercial register must be amended to reflect the new activity. This procedure can be carried out electronically through the "Ministry of Commerce" platform without the need to visit the branches.

If you are thinking of changing the activity of your facility in Saudi Arabia, contact Etmam Company today to obtain specialized advice and full support in updating your commercial records and ensuring compliance with the new regulations. Let us help you take the right steps to grow your business with confidence, starting from establishing companies to protecting wages.

Contact us now for more details

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