Saudi Gazette report

RIYADH — The Ministry of Commerce has clarified that there are five terms and conditions for transferring ownership of a sole proprietorship's commercial registration to another person. The transfer can be undertaken via the e-services of the Saudi Business Center's business platform: business.sa.

The service of transferring ownership of a sole proprietorship's commercial registration targets investors from Saudi Arabia and other Gulf states and the transfer process will be completed within one day. According to the conditions, the commercial registration shall be active; the new owner does not already own a sole proprietorship's commercial registration; the new owner shall not be a government employee, the age of the owner shall be at least 18 years; and the name in the commercial registration shall not be the transferor's personal name.

The ministry indicated that if the person from whom the commercial registration is transferred is deceased, a deed of inheritance must be submitted, along with a deed of guardianship if there are minors. A legal power of attorney from all heirs must be provided, stipulating the transfer of the business, and a sale and transfer contract from the heirs, specifying the registration number, must be submitted electronically via the "Business Platform."