The Ministry of Commerce announced that the number of Companies that converted to closed stock during last year were 99 companies, while their number during the first quarter of this year reached 23 companies, or 122 companies in 15 months.
With regard to individual enterprises, the ministry stated that the number of them converted into closed joint stock companies was 105 during 2021, while 26 enterprises were converted during the first quarter of this year.
The Ministry explained that the transformation of individual institutions and companies into closed joint stock companies provides several advantages, most notably better governance and oversight mechanisms, institutionalization, the possibility of listing on the stock market, and increased disclosure and transparency.
This is in addition to ensuring continuity, broadening the ownership base of shareholders and smooth transfer across generations, more flexibility to fulfill the value of the company's capital at incorporation and flexibility in trading shares.
Also, ensuring continuity and broadening the ownership base of shareholders and smooth transfer across generations.
The advantages also include greater diversity in funding sources, enabling minority shareholders to have a representative on the board of directors, avoiding the risk of disagreements between shareholders and management, and obtaining more benefits from various government agencies.
The ministry's statistics showed an exponential increase in the transformation of companies of all kinds into closed shareholding since 2015 until now, as the total number of closed shareholding companies over the past six years jumped from 1180 companies in 2015 to 2102 companies by the end of 2021, recording a growth of 78%.
The ministry's statistics showed an exponential increase in the transformation of companies of all kinds into closed shareholding.
The activities of companies converting to closed shareholding varied between various sectors, most notably the manufacturing, petrochemical and mining industries, the investment sector, the telecommunications sector, the tourism and entertainment sector, the technical services sector and finance.
General trade, financial services, real estate, human resources, general contracting, education, transportation and logistics, food and construction industries, professional services, holding company activity, health sector, agriculture and water sectors, and the advertising sector.
The Ministry has worked to facilitate the issuance of records without the need to visit the Ministry's building, and just issue the commercial register electronically immediately, and have it approved by the competent employee.
The Ministry has worked to facilitate the issuance of records without the need to visit the Ministry's building.
The time taken to complete the issuance of a commercial register is up to 180 seconds from the beginning of the request until it is issued for individual organizations, and when submitting a request to issue a commercial register, the service will provide the applicant with a request number through which he can follow up his request through the easiest and fastest means such as a mobile phone.
The Ministry has worked to facilitate the issuance of the commercial register without having to visit the Ministry's building.
The Ministry of Commerce invited all private sector establishments to take advantage of the process of making the details of commercial records data of companies and institutions available free of charge through the "Wathiq" portal, in support of the Ministry's support to the business sector to benefit from this data electronically within its smart applications, and to enhance the initiatives to stimulate e-commerce and digital transformation in the Kingdom.
