Company Accounting Violations: Fines & Consequences

Violations and fines for failure to maintain the company’s accounting records and supporting documents or failure to prepare financial statements, or non-Deposit of financial statements according to the provisions of the Companies Law

Companies Law

Accounting Records and Financial Statements

1. A company shall maintain accounting records and supporting documents relating to its activities, contracts, and financial statements at the company’s headquarters or at any other location designated by the company’s manager or board of directors.

2. A company’s financial statements shall be prepared by the end of each fiscal year in accordance with accounting standards approved in the Kingdom, and said statements should be deposited as provided for in the Regulations within six months from the date on which the fiscal year ends, in accordance with the provisions of this Law.

Article two hundred and sixty-two (262)

Without prejudice to any harsher penalty under any other law, the following persons shall be subject to a fine not exceeding five hundred thousand riyals (500,000) :

Any person who fails to perform his duty to maintain the company’s accounting records and supporting documents relating to its activities and contracts; to prepare financial statements in accordance with accounting standards approved in the Kingdom; or to deposit the same as provided for in this Law.