Commerce Ministry Reports 68% Surge in Company Records

The Ministry of Commerce has announced a significant 68% increase in company commercial records since the implementation of the New Companies Law on January 19, 2023, which has streamlined processes, facilitated company establishment, and introduced innovative features like simplified joint-stock companies and remote shareholder participation.
With the new law, commercial records have reached 389,413 by the end of the third quarter of 2024, a substantial increase from the 230,762 records prior to its implementation.
The law has revolutionized the business landscape by offering a range of benefits, including simplified company formation, remote shareholder participation, and flexible financing options. Key features like the simplified joint-stock company and the ability for limited liability companies to issue debt instruments have further empowered businesses.
The New Companies Law has had a positive impact on the Kingdom's economy, encouraging entrepreneurship and attracting investment.