Saudi Ministry of Commerce Sets Final Deadline for Financial Statement Submission

Legal Alert: Saudi Ministry of Commerce Sets Final Deadline for Financial Statement Submission

Published: June 16, 2025

The Saudi Arabian Ministry of Commerce has issued a critical and final reminder to all companies: the deadline to file your 2024 annual financial statements is Monday, June 30, 2025.

For any company whose fiscal year concluded on December 31, 2024, this is a mandatory and non-negotiable deadline. Failure to comply can lead to severe financial penalties and significant business disruption. At SHP Law, we are committed to ensuring our clients navigate these regulations seamlessly and avoid any legal repercussions.

Understanding the Ministry's Deadline and Legal Basis

This directive is not a new requirement but a strict enforcement of existing law. The legal foundation for this mandate is Article 17 of the Saudi Companies Law, which requires all companies to prepare and file their financial statements within six months following the end of their fiscal year.

The Ministry has stressed that no extensions will be granted. All businesses must act now to ensure they are in full compliance.

Key Compliance Details at a Glance:

• Firm Deadline: Monday, June 30, 2025.

• Submission Platform: All financial statements must be filed electronically through the Ministry's official Qawaem platform.

• Governing Law: Article 17 of the Saudi Companies Law.

• Required Standards: All filings must adhere to the accounting standards officially recognized and adopted within the Kingdom of Saudi Arabia.

The High Cost of Non-Compliance: Penalties Under Article 262

The Ministry of Commerce has explicitly warned that missing the June 30 deadline will trigger penalties as stipulated in Article 262 of the Companies Law. The consequences are severe and designed to enforce compliance:

• Substantial Financial Penalties: Companies may face fines ranging from SAR 50,000 up to SAR 500,000.

• Damage to Legal Standing: Non-compliance can negatively impact your company's official legal status and lead to further regulatory scrutiny.

• Restricted Access to Financing: Banks and financial institutions often require proof of compliant filings to approve loans or other forms of credit.

• Loss of Business Credibility: Failing to meet statutory obligations can damage your reputation with shareholders, customers, and potential business partners.

Your Action Plan for Immediate Compliance

To avoid these damaging outcomes, your business must take immediate steps:

1. Finalize Your 2024 Financial Statements: Ensure your statements are complete and have been audited in accordance with KSA-adopted accounting standards.

2. Prepare for Electronic Submission: Familiarize yourself with the Qawaem platform's requirements for a smooth and successful upload.

3. Submit Before the Deadline: Do not wait until the last minute. File your statements on the Qawaem platform well before June 30, 2025, to account for any potential technical issues.

How SHP Law Can Secure Your Compliance

Adherence to the Saudi Companies Law is not merely a procedural task; it is a critical component of maintaining your company's good legal standing and operational integrity. The complexities of the statute, coupled with the precise technical requirements of the Qawaem platform, present significant challenges where errors can lead to statutory penalties and commercial setbacks.

The distinguished team of corporate law specialists at SHP Law possesses the requisite expertise to navigate this intricate regulatory landscape. We provide premier legal services designed to ensure your company achieves and maintains full compliance with all its corporate obligations in Saudi Arabia.

Our specialized legal support includes:

• Strategic Advisory on Corporate Governance: Our counsel extends to all facets of corporate governance and compliance in Saudi Arabia, helping you implement best practices that mitigate risk and enhance shareholder value.

• Proactive Legal Audits and Compliance Reviews: We can conduct comprehensive reviews of your corporate filings and procedures to identify and rectify any potential issues before they escalate into non-compliance violations.

Protect your company's financial health and distinguished reputation from the risks of non-compliance. We invite you to contact SHP Law to engage our expert legal services and ensure you confidently meet the June 30, 2025 deadline and all future regulatory requirements.