February 1, 2023

The Department of Commerce has urged companies to commit to depositing their approved financial statements through the Qaouem e-filing program, through licensed legal accounting firms, or through the company method through the qawaem.bc.gov.sa website, in order to achieve governance principles and transparency between companies and governments, related parties, financial institutions, shareholders and investors.

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The Department of Commerce confirmed its follow-up to the filing of financial statements of closed joint stock companies or limited liability companies, noting the importance of prompt deposits by companies of their listings to comply with the provisions of the Companies Act and to avoid the penalties provided for in case of delay in the statutory deadline for filing documents, which the law set for four months for a limited liability company, from the end of the financial year and 15 days before the date of the general meeting of a closed joint stock company, which is held within six months after the end of the financial year.

The mechanisms for preparing financial documents for closed joint-stock companies are shown, where the board of directors prepares the financial statements of the company, a report on its activities and financial position for the past year, and this report includes a proposed method of profit distribution, in addition to providing documents to the auditor 45 days before the date fixed for holding the general meeting. The heads of limited liability companies draw up for each financial year the financial statements of the company, a report on the activities of the company and its financial position, and their proposals for the distribution of profits within three months after the end of the financial year.

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