📍 Everything You Need to Know About Transferring Commercial Registration Ownership in Saudi Arabia

If you own an establishment or company and are considering selling it or transferring it to someone else, or if you are a buyer planning to purchase an existing commercial registration — you need to understand the procedures for transferring commercial registration ownership correctly. In this article, we explain all the steps, requirements, and required documents.

📌 What is Transferring Commercial Registration Ownership?

Transferring commercial registration ownership is the process of changing the owner of a commercial entity from one person to another, whether it is an individual establishment or a company. This is done through the Ministry of Commerce electronically, without the need to visit the ministry’s offices.

📋 When Do You Need to Transfer Ownership?

There are multiple cases that require transferring commercial registration ownership, such as:

  • Selling the establishment: When you decide to sell your business to someone else
  • Transferring: The owner transfers the establishment to a partner or relative
  • Changing the company’s form: Transforming an individual establishment into a company or vice versa
  • Power of Attorney: In cases of inheritance and dividing estates

🖥️ Steps to Transfer Commercial Registration Ownership Electronically

The service is available through the “Baladi” platform in coordination with the Ministry of Commerce, or via the unified Absher portal. Here are the detailed steps:

  1. Log in: Enter the Absher platform using an Absher account (for both the seller and buyer)
  2. Request Ownership Transfer: Select the “Transfer Commercial Registration Ownership” service from the establishment services list
  3. Enter Data: Enter the commercial registration number you wish to transfer ownership of
  4. Electronic Approval: The seller sends the transfer request, and the buyer approves it electronically through their Absher account
  5. Pay Fees: Pay the ownership transfer fees electronically
  6. Request Approval: After review, the ministry issues the new commercial registration under the new owner’s name

📄 Required Documents

  • National ID (for Saudis) or residency (for non-Saudis) for both parties
  • The current commercial registration
  • Written approval from the seller and buyer (done electronically)
  • Zakat and Income Certificate (if the establishment is subject to it)
  • Pay any municipal violations if they exist
  • Approval from relevant authorities (for certain activities such as contracting or restaurants)

💰 How Much Does Transferring Commercial Registration Ownership Cost?

Fees vary depending on the type of establishment:

  • Individual Establishments: Approximately 200 SAR transfer fees
  • Limited Liability Companies: Varies based on capital — starting from 600 SAR
  • Joint Stock Companies: Higher fees depending on the company’s size

You must also renew the commercial registration if its validity is about to expire.

⚠️ Important Tips Before Transferring Ownership

  • Ensure violations are settled: Any municipal or commercial violations prevent the transfer
  • Inspect the registration: Ensure there are no financial obligations or legal issues with the establishment
  • Inquire about the registration: You can inquire about any commercial registration through the “Muras” platform of the Ministry of Commerce
  • Municipal requirements: If the activity is commercial (restaurant, salon, shop), the municipality must approve the new owner

🕐 How Long Does It Take?

After submitting the request electronically, approval typically takes 1 to 5 business days, depending on the completeness of the documents and the speed of approval from the relevant parties.

❓ Frequently Asked Questions (FAQ)

Can you transfer commercial registration ownership if there are violations?

No, all municipal and commercial violations must be settled first. The system does not allow property transfer if there are any unpaid violations on the record.

Does property transfer require municipal approval?

If the commercial activity requires a municipal license (such as restaurants, cafes, and retail stores), municipal approval for the new owner is required. However, electronic or service activities usually do not require it.

Can a commercial registration be transferred to a non-Saudi?

Yes, but with conditions. The non-Saudi must have a valid residency, and the commercial activity must be permitted for non-Saudis (most activities are currently allowed). Some activities, such as foreign investment, require a license from the Ministry of Investment.

Can property transfer be reversed after approval?

After the Ministry of Commerce approves the property transfer, it cannot be reversed. A new transfer request must be submitted from the new owner to the seller, which requires both parties’ approval again.

Do I need an accountant to transfer commercial registration ownership?

It is not mandatory, but it is advisable to consult an accountant or legal advisor to ensure there are no hidden liabilities on the establishment, especially if the company has contracts, debts, or employees.

Summary: Transferring commercial registration ownership in Saudi Arabia is now a fully electronic process through the Ministry of Commerce and “Nafath” platforms. The key is ensuring the record is free of violations and liabilities before starting and preparing the required documents in advance. If the correct steps are followed, the process should not take more than a week.

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