The regulation currently being offered for polling on the “Istiqla” platform also allowed companies located outside the economic zones to register branches in the special economic zones, and also allowed companies within the economic zones to register branches outside them.
The regulation also specified the conditions for registering branches of companies in the economic zones, where this is done by submitting the application to the competent department, and a decision from the authority in the company, or the company established outside the special economic zones for registering a branch and appointing the branch manager, provided that the decision includes the name of the branch manager, and the registration number The civil number of the Saudi director, or the residence number of the non-Saudi director residing in the regions of the Kingdom, and the passport number for those residing outside it.
A statement of the economic activities in which the branch will be established in the special economic zones must also be submitted. Companies and branches may practice economic activities after being registered in the competent department, and this is in accordance with the purposes of their registration and the licensing requirements in accordance with the licensing regulations issued by the Authority.
The regulations granted shareholders and companies, during the period preceding or following the incorporation stage, to conclude one or more agreements, including family pacts, to regulate the relationship between them, and this agreement is binding on the parties.
Establishment and management of companies
The authority pointed out that the provisions of this regulation will apply to companies that are established in the special economic zones, or branches that are registered in the special economic zones, and according to the regulation, a specialized department concerned with the establishment and registration of companies in the special economic zone will be established, and commercial license certificates will be issued headed by a director appointed by before the body.
The regulations stipulated that the company should prepare a special register of shareholders’ names, nationalities, data, places of residence, professions, the number of shares owned by each of them, and share numbers, and it must be kept in the Kingdom.
She stressed that the company may consist of one person, or become owned by one person, adding that submitting an application for establishing the company is done by directing the application to the relevant department by one or more founders, provided that the application includes several data, including: the name of the company, and the amount of its capital. The money, the names of the founders, and their identification papers, whether a natural or legal person.
The regulation added that in the event that the competent department approves upon accepting the incorporation application, the company’s commercial license is issued, the company’s registration number is issued, and the company’s articles of association are registered and publicized, and the company will acquire legal personality once it is registered with the competent department.
severe penalties
The regulation specified the penalties that will be applied to companies in the economic zones in the event that they violate the articles of the companies regulation, including: warning, suspension, or cancellation of the registration of the company or its branches, or a fine not exceeding one million riyals.
The authority affirmed that no penalty may be imposed on companies and branches without providing a reasonable opportunity to correct the violation and redress the damage, and when determining the penalty, it must take into account the nature, circumstances and extent of the seriousness of the violation, the intent and intent of the infringement, previous violations and recidivism, and the material damage caused as a result of the violation. With the obligation of the Authority to inform the Public Prosecution of any criminal violation related to the provisions of these regulations that occurred in any of the special economic zones.
