The Ministry of Commerce called on companies to prepare and submit financial statements electronically via the «Listings Platform» to avoid violating the provisions of the Companies Law.
The Ministry explained that simplified companies, simplified joint-stock companies, limited liability companies, partnerships, and simple partnerships "according to their legal form" must prepare financial statements at the end of each fiscal year in accordance with the accounting standards adopted in the Kingdom, and deposit them within (6) months from the end of the fiscal year, based on Article (17) of the new Companies Law.
The financial statements show the company’s financial position, profits and losses, net cash flow and changes in owners" equity, and the responsibility for filing them lies with: (the company president, the company manager, or the chairman of the board).
Filing financial statements contributes to the following:
• Meeting the regulatory requirements according to the company's structure.
• Clarify the company's activity and performance.
• The company's commitment to market rules and performance indicators.
• The company will not be held legally accountable for violating company regulations.
• Assisting shareholders and partners in monitoring company performance and conducting financial analysis of financial statements.
• Access to all government services provided to companies.
• Assessing the level of governance and transparency of companies.
• Giving financing and lending entities confidence in the company.
The Ministry of Commerce clarified that a company that fails to fulfill its duty to prepare and submit financial statements in accordance with the approved accounting standards or submit them in accordance with the provisions of the system shall be punished with a financial penalty of up to 500,000 riyals, in accordance with Article (262) of the Companies Law.
The ministry calls on companies to prepare and submit their financial statements electronically via the Qawaem platform qawaem.bc.gov.sa
