In Saudi Arabia, shifting the ownership of a sole proprietorship’s commercial registration just got clearer—and quicker. The Ministry of Commerce has outlined five must-follow conditions that make the process seamless, aiming to empower investors within the Kingdom and across Gulf states to complete the transfer in just one day.
Here’s the lowdown:
- The commercial registration must be active and up to date.
- The incoming owner cannot already hold another sole proprietorship registration.
- The new owner cannot be a government employee.
- Ownership is reserved for those aged 18 and above.
- The commercial registration’s name can’t be the personal name of the transferor.
The Ministry also has provisions for transfers involving deceased owners: heirs must present a legal deed of inheritance, guardianship papers if minors are involved, and a notarized power of attorney from all heirs. On top of that, a sale and transfer contract with the registration number must be uploaded electronically through the Saudi Business Center’s “Business Platform.”
This digital-first approach simplifies business transitions and fuels investment fluidity across the region, all while keeping the process swift and transparent.
