A simplified guide to the importance of obtaining a commercial registration for your business, the steps for issuance, commercial registration renewal fees, along with some required conditions when registering a trademark and the benefits of authenticating a successful online store from Salla.

One of the most important things that companies need at the beginning of their business journey is to ensure operating legally, to guarantee ease of business continuity and complete all their procedures with the Ministry of Commerce. One of the things that guarantees this is obtaining a commercial registration for your business activity.

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What is a Commercial Registration?

It is a tool provided by the Ministry of Commerce to regulate trade movement in the country and control data related to businesses and companies, as it contains detailed information about merchants, businesses, and commercial activities, such as:

• Data of the company owner or their agent (the applicant).

• Company type.

• The company's commercial name, which distinguishes the company from others, where the owner's name is required to be part of it.

• The trademark name, which is the denomination that the merchant places on the shop sign.

• The purpose of establishing the company.

• The main address and branches, if any.

• Capital details.

• The company's starting date.

• The license date to practice the activity.

• Data of partners and senior management, if any.

• The registration number of the trademark and patents.

The Importance of Obtaining a Commercial Registration

First: Obtaining Privileges

One of the most prominent benefits of obtaining a commercial registration is that the majority of governments provide registered business owners with more benefits, especially securing support for startups and growing companies. Among these privileges are providing more legal protection and legalizing the commercial project.

Second: Obtaining Financing

Obtaining financing is one of the most important benefits of obtaining a commercial registration for most funders, as they do not prefer to provide financing to any enterprise unless this enterprise has a commercial registration in the country. This is because these companies operate legally, which guarantees rights for all parties.

Third: Gaining Customer Trust

Obtaining a commercial registration for the enterprise or company gives it more loyalty from customers, as the Ministry of Commerce has provided a useful service for consumers and merchants, which is the "Maroof" service for E-commerce. It is a (free) service that enables the seller to easily reach a larger segment of customers by marketing their store and means of communication with absolute reliability to link their store with the commercial registration. It also gives the online shopper an idea about the quality of services provided to them by online stores through the possibility of viewing customer reviews and ratings of the store and sharing their experience with product evaluation as well.

Fourth: Legal Protection

In the event of not obtaining a commercial registration and registering your company, you will not be able to litigate or plead in commercial courts and benefit from the law that protects your company. In the absence of a commercial registration, it cannot be verified that you are the original owner of the establishment or that you own it, and there is no proof that the company raising the case in its name is actually a real company.

Fifth: Market Competition

Obtaining a commercial registration allows you to inquire about other companies' registrations and find out details about them. The purpose of obtaining this information is to ensure that the companies you intend to deal with in the future are real and legally registered. Vice versa, having a commercial registration for your company will allow other companies to know your commercial registration status, in order to make deals with you in future businesses after ensuring that your company is legal.

Sixth: Keeping away from Personal Liability

When obtaining a commercial registration and registering your company legally, you will not be individually liable for the company you own, but your liability is related to the number of shares you own in the company. Naturally, this aspect differs if you register your company as a sole proprietorship.

Conditions for Obtaining a Commercial Registration:

Below are the conditions for obtaining a commercial registration for the company or activity you own:

1. The merchant must have a place of work, such as a physical store or from home.

2. The availability of the original ownership contract or the lease contract of the establishment.

3. The owner of the establishment must have an account on the Absher platform.

4. Providing the merchant's data such as the commercial identity number, full name, date of birth, and signature.

5. The owner of the commercial registration must be at least 18 years old.

6. The owner of the establishment must not work in the government or private sector.

7. The capital must not be less than 5000 Riyals.

Fees for Obtaining a Commercial Registration:

Fees for obtaining a commercial registration differ depending on whether it is a primary commercial registration being issued for the first time, or a sub-commercial registration, which is a registration for other projects carrying the same commercial name:

• The cost of issuing the primary commercial registration is 200 Riyals per year.

• The cost of issuing the sub-commercial registration is 100 Riyals per year.

Steps for Obtaining a Commercial Registration:

1. Log in to the Ministry of Commerce website.

2. From the menu at the top, choose "Electronic Services", then choose "Issuing Commercial Registration".

3. Select "Start Service", then "Login to the system".

4. You can register through the commercial registration system or through the Single Sign-On (Nafath).

5. Choose the registration method (Citizen and Resident, Gulf Citizen, or Non-Resident).

6. The system will transfer you to the Single Sign-On platform (you must have an account on Absher, so that the system can retrieve the data).

7. Fill in the required details (Absher username, password, verification code, validating policies).

8. After that, you will be transferred to the commercial registration system, choose "Issue Registration".

9. Choose the registration name type (Personal Commercial Name, Existing Commercial Name, Reserved Commercial Name).

10. Enter business data (field, activity type, type of installation, etc.).

11. If you own an e-commerce, choose "Add e-commerce data" and fill in the details (website link, Maroof document, agreement to the undertaking).

12. Enter financial and registration data (date, validity period of the registration, capital, email, national address, etc.).

13. The application details (registered information and invoice) will be displayed, please approve them.

14. The invoice details will be reviewed for payment (the payment period of the invoice is 30 days from its request).

Obtaining and Renewing a Commercial Registration
It has become possible to renew the commercial registration upon its expiration through the Ministry of Commerce website through the following steps:

• Log in to the Ministry of Commerce website.

• Log in to the commercial registration system.

• Choose "My Registrations", then the system will show you all registrations.

• Next to the registration you want to renew, choose "Options".

• From the dropdown menu, choose "Renew".

• Specify the renewal years (the maximum renewal period is 5 years).

• The renewal invoice details will be displayed for payment.

Verification of Stores on Salla

At Salla, thousands of merchants have been helped to start their online businesses and expand with ease. The goal is to facilitate e-commerce and create a trusted and secure business environment for everyone, which is why we launched the store verification service.

Store verification is a service launched by Salla platform with the aim of verifying the merchant's data when activating payment methods. This is done through direct and seamless technical integration to verify individual, institution, and company data, and this contributes to speeding up the activation of electronic payment gateways and other payment methods.

Why do I need to verify my store?

• A basic requirement to start the selling process on Salla platform.

• Activating payment methods in your online store.

• Contributing to building a secure e-commerce environment for the merchant and the customer.

Frequently Asked Questions About Store Verification

What are the possible reasons for my store verification failing?

• The commercial registration does not match the store owner's identity.

• Entering the national ID/Iqama number, date of birth, or commercial registration number incorrectly.

• The bank name does not match the name in the IBAN certificate.

• The ID, commercial registration, or charity certificate is not clear.

• The store is empty of products.

• Lack of contact information.

Can a new store that does not contain products be verified?

No, adding products to the store is a primary condition for verification.