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

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

Salla is the future of e-commerce, an easy platform to start your trade

What is a Commercial Registration?

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

• Details of the company owner or their representative (the applicant).

• Company type.

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

• The trade name, which is the name the merchant puts on the shop sign.

• The purpose of establishing the company.

• The main address and branches, if any.

• Capital details.

• The company's start date.

• The date of the license to practice the activity.

• Details of partners and senior management, if any.

• Trademark registration number and patents.

Importance of obtaining a commercial registration

First: Obtaining privileges

One of the most prominent benefits of  obtaining a commercial registration is that most governments offer registered business owners more features, especially securing support for startups and growing companies. These privileges include providing more legal protection and legalising the commercial project. 

Second: Obtaining funding

Obtaining funding is one of the most important benefits of extracting a commercial register for most funders. They prefer not to provide funding to any institution unless it holds a commercial registration in the state, as these companies operate legally, ensuring the rights of all parties. 

Third: Gaining customer trust

Obtaining a commercial registration for the facility or company grants it more loyalty from customers. The Ministry of Commerce has provided a useful service for consumers and merchants, which is the "Maroof" service 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 to the commercial register. It also gives the online shopper an idea of the quality of services provided to them by online stores by allowing them to view customer opinions and ratings of the store, and share their experience along with product evaluation.

Fourth: Legal protection

If you do not  obtain a commercial registration and register your company, you will not be able to litigate or plead in commercial courts or 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 institution or that you own it, and there is no proof that the company filing the lawsuit in its name actually exists.

Fifth: Market competition

Obtaining a commercial registration allows you to query the records of other companies and know 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. Conversely, having a commercial registration for your company will allow other companies to know your commercial record to make deals with you in future businesses after ensuring your company is legal.

Sixth: Avoiding personal liability

When you obtain a commercial registration and register your company legally, you will not be individually liable for the company you own, but your liability will be related to the number of shares you own in the company. Of course, 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 workplace, such as a physical store or from home.

2. Availability of the original ownership contract or lease agreement of the facility.

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

4. Provide merchant details such as commercial ID number, full name, date of birth, and signature.

5. The owner of the commercial register must not be less than 18 years old.

6. The facility owner must not work in the public or private sector.

7. The capital must not be less than 5,000 Riyals.

Commercial registration issuance fees:

Commercial registration issuance fees vary depending on whether it is a main commercial registration being issued for the first time, or a subsidiary commercial registration, which is a registration for other projects carrying the same commercial name:

• The cost of issuing a main commercial registration is 200 Riyals per year.

• The cost of issuing a subsidiary commercial registration is 100 Riyals per year.

Steps to obtain a commercial registration:

1. Access the  Ministry of Commerce website.

2. From the top menu, select "E-Services", then choose "Issue Commercial Registration".

3. Select "Start Service", then "Log in to the system".

4. You can register through the commercial registration system or via the Unified National Access (Nafath).

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

6. The system will redirect you to the Unified National Access platform (you must have an Absher account so the system can retrieve the data).

7. Fill in the required details (Absher username, password, verification code, and policy verification).

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

9. Choose the type of registration name (Personal commercial name, Existing commercial name, Reserved commercial name).

10. Enter business data (Field, activity type, facility type, etc.).

11. If you own an e-commerce business, select "Add E-Commerce Data" and fill in the details (Website link, Maroof document, agreement to the undertaking).

12. Enter financial and registration details (Date, validity period of registration, capital, email, national address, etc.).

13. The application details (registered information and invoice) will be displayed; click to approve them.

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

Obtaining and renewing a commercial registration 
It is now possible to renew the commercial registration upon its expiry through the Ministry of Commerce website following these steps:

• Access the Ministry of Commerce website.

• Log in to the commercial registration system.

• Select "My Registrations", and the system will display all registrations.

• Next to the registration you wish to renew, select "Options".

• From the drop-down menu, select "Renew".

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

• The renewal invoice details will be shown for payment.

Documenting stores from Salla

In Salla, we have helped thousands of merchants start their commercial businesses online and expand with ease. The goal is to facilitate e-commerce and create a reliable and secure trading environment for everyone; therefore, we launched the store verification service.

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

Why do I need to verify my store?

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

• To activate payment methods in your online store.

• To contribute to building a secure environment for e-commerce for both the merchant and customer.

Frequently asked questions about store verification

What are the potential reasons for my store verification failing?

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

• Incorrect entry of ID/residency number, date of birth, or commercial registration number.

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

• The ID / commercial registration / charity certificate is not clear.

• The store has no products.

• Lack of contact information.

Can a new store without products be verified?

No, adding products to the store is a fundamental prerequisite for verification.