The Ministry of Commerce (MC) and the Capital Market Authority (CMA) announced that the New Companies Law and its implementing regulations will go into effect as of today (Thursday) 26 Jumada Al Thani 1444 H corresponding to January 19th, 2023.
The MC and the CMA emphasized that the New Companies Law will enable companies to grow, expand, address challenges, and keep on top of economic trends in the Kingdom at all levels. This is essential for realizing the goals and implementing the plans laid forth in the Vision 2030 programs.
According to the MC and the CMA, the new law will regulate the provisions of companies of all forms because it applies one single law to all organizations. This is a result of the joint efforts exerted by both government entities to revise and modernize the Kingdom's trade and investment legislation and laws.
The MC and the MCA previously outlined the procedures for enforcing the New Companies Law as part of their joint efforts to promote integration and harmonization with respect to the execution of the law in a way that fulfills its objectives.
The Companies Law will aid in fortifying the corporate regulatory environment by easing the implementation of systemic procedures and requirements designed to stimulate the business environment and support investment, striking a balance between the interests of various stakeholders, and providing an efficient and equitable framework for corporate governance and institutional work.
The law will actively contribute to enhancing the sustainability of economic entities, attracting domestic and foreign investment, providing sustainable sources of finance, supporting the demands and requirements of the entrepreneurship sector, and boosting SME growth.
The MC and the CMA urged the general public and those interested to read the New Companies Law and its implementing regulations at the Ministry's website. Here is the link:
Click here
To read it via the following link on the CMA website:
Click here