The Ministry of Commerce has called on companies to comply with the requirement to file their audited financial statements via the electronic filing program “Qawaim” through licensed public accounting firms or directly by the company via website, in order to uphold the principles of corporate governance and transparency with relevant government agencies, financial institutions, shareholders, and investors.
The Ministry of Commerce confirmed that it is monitoring the filing of financial statements by closed joint-stock companies and limited liability companies, emphasizing the importance of promptly filing their financial statements in accordance with the provisions of the Companies Law and to avoid the penalties prescribed for delays beyond the statutory filing period—which is set at four months from the end of the fiscal year for limited liability companies, and 15 days prior to the date of the general assembly meeting for closed joint-stock companies, which must be held within six months of the end of the fiscal year.
The Ministry of Commerce clarified the procedures for preparing financial documents for closed joint-stock companies, whereby the board of directors prepares the company’s financial statements and a report on its activities and financial position for the past year; this report must include the proposed method of dividend distribution, in addition to making the documents available to the auditor 45 days prior to the scheduled date of the General Assembly meeting. Similarly, in limited liability companies, the managers must prepare, for each fiscal year, the company’s financial statements, a report on its activities and financial position, and their proposals regarding the distribution of profits, within three months of the end of the fiscal year.
Companies
