MCI official spokesman Mr. Turki Al Toaimi has announced that the level of submitting the financial statements through "Qawaem" program is in constant growth, since launching the program in January 2015, referring as well that there is a great response and cooperation by the companies in submitting their financial statements.
MCI official spokesman asserts that the growth rate of inputting the financial statements of the joint- stock companies, registered at the Ministry, is approximately 70%.
MCI calls on all companies and institutions, officially bound with this system, to input their financial statements urgently in "Qawaem" program before 19/1/1437 H corresponding to 01/11/2015 AD, so as to avoid stopping their Commercial Registrations and imposing the penalties contained in the corporate law, which may include imprisonment for one year and a fine in the event of non-compliance with inputting their financial statements in "Qawaem" program and the delay over six months from the end of the fiscal year of the company or institution. Notably, the companies and institutions, bound officially to input their financial statements, are as follows:
Joint- Stock Co., Mixed Joint- Stock Co. , Foreign Joint- Stock Co., Joint- Stock Co. with Gulf Capital, a Branch of Foreign Joint-Stock co., Limited Liability Co., Mixed Limited Liability Co., Foreign Limited Liability Co., Limited Liability Co. with Gulf Capital.
The following companies are bound as well with this system: a Branch of Foreign Limited Liability Co., Limited Partnership Stock Co., Limited Partnership with Gulf Capital Co., a Branch of Foreign Co. with Limited Partnership, General Partnership with Gulf Capital Co., a Branch of Foreign General Partnership Co., a Branch of Individual Foreign Est., Branches of Foreign Licensed Companies.
It is worth mentioning that “Qawaem” program is one of the Ministry of Commerce and Industry initiatives in cooperation with the Saudi Organization for Certified Public Accountants and the Department of Zakat and income, in order to convert the paper financial statements to electronic and to be submitted automatically. This would support the credibility and transparency of the financial statements with the beneficiaries, in addition to the speed in providing the concerned authorities, such as the Department of Zakat and Income and others, with the requested information with high accuracy, as well as providing a financial and economic data base, supporting the National Database and Information.
This program also includes linking the financial statements of companies and institutions with (ISIC) International Standard Industrial Classifications, adopted by the United Nations, which will enable the financial analysis of economic sectors and activities of various kinds, as well as studying and monitoring their performance indicators and the distribution of investments as per the activities