The Ministry of Commerce explained that the Companies Law stipulates in Article 17 that “financial statements of the company must be prepared at the end of each fiscal year in accordance with the accounting standards adopted in the Kingdom and filed within (6) months from the end of the fiscal year.”
The Ministerial Decision stipulates that the financial statements of the company must be filed within (6) months from the end of the fiscal year. <The Ministerial Decision stipulates a direct penalty for anyone who violates the filing of financial statements in accordance with the provisions of the Companies Law and its Executive Regulations, and the fine shall be as follows: Violators in all forms of companies (except the unlisted joint stock company), 8 thousand riyals for the violator in the company with one director whose capital is less than (500 thousand riyals), 4 thousand riyals for the violator in the company with two or more directors whose capital is less than (500 thousand riyals), 12 thousand riyals for the violator in the company with one director whose capital is less than (500 thousand riyals). 6,000 riyals on the violator in a company with two or more directors whose capital amounts to (500 thousand riyals) or more, 6,000 riyals on the violator in a company with two or more directors whose capital amounts to (500 thousand riyals) or more, violators in an unlisted joint stock company, 15,000 riyals on the violator if the company's capital is less than (5 million riyals). 20 thousand riyals on the violator if the company's capital is (5 million riyals) and more.
The decision stipulates that if the violation of not filing the financial statements within the statutory period for the fiscal year following the previous violation decision has gained finality, the fine will be increased by (50%).
The decision stipulates that in the event of a repeat violation of not filing the financial statements within the statutory period for the fiscal year following the previous violation decision.
