Regulatory Alerts2018-11-04
Using Commercial Registers for the Same Activity in Many Locations/Stores in the Same Administrative Region
The Saudi Central Bank's Banking Policies Department issued a directive clarifying that subsidiary commercial registers are mandatory only for branches or stores operating in different administrative regions or engaging in activities distinct from the main headquarters. This directive, responding to a Ministry of Commerce and Investment circular, allows businesses operating multiple locations within the same administrative region and activity to utilize a single commercial register without mandatory subsidiary registrations. Consequently, financial institutions and other businesses can streamline operational procedures and reduce administrative costs while maintaining full regulatory compliance.
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