Mohammed Abdulaziz Al-Ajlan, chairman of the Trade Committee at the Riyadh Chamber of Commerce, called on the Ministry of Commerce and Industry to respond to small and medium-sized enterprises that have been affected by the “Qawaim” program, which the ministry recently launched to facilitate and regulate the filing of financial statements by companies and institutions operating in the Kingdom.
Al-Ajlan revealed that the program has been exploited by certified public accountants to raise prices for companies, in addition to the scarcity of such professionals in the market. He noted that even startups are required by the system to submit financial statements prepared by a certified public accounting firm, adding that exorbitant fees are also being charged that are disproportionate to the company’s size.
Al-Ajlan warned against exploitation by “fly-by-night operators” who merely stamp financial statements, He noted the shortage of accountants in the market compared to the number of companies in the Kingdom, and the chairman of the Commercial Committee proposed that the company’s accountant prepare the statements according to standards set by the Saudi Accountants Authority and the Ministry of Commerce and Industry, with company owners bearing responsibility, as is the practice in many countries around the world. He noted that some companies that have not engaged in any business activity are still required by law to submit financial statements, and consequently, their owners incur costs for the certified public accountant.
Al-Ajlan explained that establishing a company to protect trademarks, a company name, or assets; to become a partner in another company in the near future; or for any other legitimate reasons—where the company remains completely inactive throughout the year—does not exempt it from the requirement to submit financial statements, adding that internationally, such companies are permitted to operate in a dormant state with zero financial statements, subject only to a nominal government fee—especially since these are companies that can be activated at any time to conduct business or carry out acquisitions.
