Notice to companies to terminate their "beneficial owner"

Responsible sources told Al-Jarida that the systems of the Ministry of Commerce and Industry automatically notify company owners of the need to take necessary corrective measures in accordance with legal requirements.

In its circular addressed to any company whose beneficial owner status has been terminated, the ministry stated that if there is no current beneficial owner registered in the commercial register, the company manager or license holder must appoint a new beneficial owner in accordance with the provisions of the decision, in order to avoid any violations or exposure to the penalties stipulated therein.

The Ministry of Commerce and Industry had previously issued a decision amending certain provisions of Ministerial Decision No. 4 of 2023 concerning procedures for identifying the beneficial owner.

Ministerial Decision No. 156 of 2026 mandates the replacement of certain provisions in Articles 8, 9, and 11 of the previous decision, requiring legal entities to maintain detailed records of each beneficial owner in a dedicated register established within no more than 15 days from the date of implementation of the decision or from the date of the legal entity’s existence.

The decision also requires updating the beneficial owner register and recording any changes to the data within 15 days from the date the legal entity becomes aware of them, or from the date it should have been aware of them.