Regulatory Rules for Measuring Enterprise Size

Article 1: Definitions

Previous Amendments
  • The following terms and expressions—wherever they appear in these Rules—shall mean the meanings set forth opposite each of them, unless the context otherwise requires:
  • Rules: The Regulatory Rules for Measuring the Size of an Enterprise.
  • Authority: The Small and Medium Enterprises General Authority.
  • Governor: The Governor of the Authority.
  • Enterprise: A commercial registration or group of commercial registrations engaging in one or more economic activities, or holding professional licenses authenticated by the relevant government entities, and sharing the same Unified Labor Office File Number with the Ministry of Human Resources and Social Development.
  • Certificate: A document issued by the Authority to the Enterprise, certifying that the Enterprise falls within the definition of a micro, small, or medium enterprise set forth in these Rules.
  • Entity: The government or non-government entity that provides benefits, services, or initiatives to micro, small, and medium enterprises.
  • Day: A calendar day, whether or not it is a working day.

Article 2: Objectives

  • The purpose of these rules is to achieve the following:

  • A- Classify establishments according to paragraph (1/3) of the Authority's regulation, and unify the standards of this classification.

  • B- Support the study of initiatives aimed at the growth of these establishments.

  • C- Contribute to reducing revenue leakage and government support, and prevent undeserving individuals from benefiting from the advantages provided to micro, small, and medium enterprises.

  • D- Contribute to the preparation of studies, research, statistical surveys, and reports related to these establishments.

Article 3: Applicability

  • The provisions of these rules apply to micro, small, and medium enterprises in the Kingdom in accordance with the definition provided in Article Four of these rules.

Article 4: Definition of Establishments

  • The establishment is classified based on the number of its full-time employees or its revenues, with consideration given to the higher value between the two as follows:

  • Micro Establishment: An establishment that has between 1 to 5 full-time employees, or has revenues ranging from zero to three million Saudi Riyals.

  • Small Establishment: An establishment that has between 6 to 49 full-time employees, or has revenues ranging from three million to forty million Saudi Riyals.

  • Medium Establishment: An establishment that has between 50 to 249 full-time employees, or has revenues ranging from forty million to two hundred million Saudi Riyals.

Article 5: Conditions for Issuing the Attesting

  • The following conditions must be met to obtain the Attesting:

  • 1- The size of the establishment must be micro, small, or medium, according to the definition provided in Article Four of these regulations.

  • 2- Validity of the Commercial Register or registration certificate.

  • 3- The establishment's work file must be in a valid state.

  • 4- The applicant must have the authority from the establishment that allows them to request the Attesting within the roles approved by the relevant authorities.

  • 5- The Claim must be submitted electronically through the Authority's website, or through other channels specified by it.

Article 6: Obligations of the Establishment

  • The applying entity for the issuance of the Attesting certificate is obligated to comply with the following:

  • 1- To provide the Authority with accurate data when requesting the Attesting certificate.

  • 2- To authorize the Authority to access the entity's data with the relevant government agencies, including revenues and the number of employees, for the purposes of determining the size of the entity and issuing the Attesting certificate.

  • 3- To notify the Authority immediately of any changes to the entity concerning the conditions stated in Article Five of these regulations, particularly regarding the number of employees or revenues.

Article 7: Validity of the Attesting

  • The attesting shall be valid for one Gregorian year from the date of its issuance, unless it falls outside the definition provided in Article Four of these regulations during that period.

Article 8: Register of Establishments

  • The Authority shall establish a register for the registration of establishments, and the Authority may delegate the tasks of this register, including its maintenance and updating of its data, to the entity it designates.

Article 9: Relationship of the Authority with the Establishment

  • The attesting does not constitute a contractual relationship, partnership, or any type of direct or indirect employment relationship between it and the establishment.

Article 10: Violations and Penalties

Without prejudice to the provisions of the relevant laws and regulations, the authority shall, in the event that it becomes evident that there has been a violation of the provisions of these rules, take the following actions:

  • 1- Cancel the attesting.

  • 2- Refer to the competent authorities to take the appropriate procedure.

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