Mechanism for Correcting the Status of Sub-Commercial Registrations

1. Grace period for rectifying the status of subsidiary commercial registers

The merchant must correct the status of his subsidiary commercial records with the registrar within (five) years from the effective date of the law on 2025/04/03 and before the end of the corrective period on 2030/04/02.

2. Options for Correcting the Sub-Commercial Register

  • The correction of the subsidiary commercial register for the company or the natural person merchant is done through the following:

    • A. Converting the subsidiary commercial register by establishing a new company.

    • B. Transferring the subsidiary commercial register to another person not registered in the commercial register.

    • C. Cancelling the subsidiary commercial register.

3. Licenses, approvals, and activities related to the subsidiary Commercial Register

  • A. In the event of correcting the subsidiary commercial register by establishing a new company, the licenses, approvals, and activities of the subsidiary commercial register are linked to the new company, in accordance with the provisions of the Companies Law and without prejudice to the rights of creditors and the relevant laws and regulations.

  • B. In the event of correcting the subsidiary commercial register by transferring it to another person, the licenses, approvals, and activities of the subsidiary commercial register are linked to the successor, in accordance with the provisions of the Law of Trade Names and without prejudice to the rights of creditors and the relevant laws and regulations.

  • C. In the event of correcting the subsidiary commercial register by canceling it, the licenses, approvals, and activities of the subsidiary commercial register are linked to the main commercial register.

4. Transfer of licenses, approvals, and activities associated with the subsidiary Commercial Register

The transfer of licenses, approvals, and activities associated with the subsidiary Commercial Register shall be in accordance with clause (3) of this mechanism from the date of correction of the subsidiary Commercial Register or the expiration of the period specified in clause (1) of this mechanism, whichever is earlier, without prejudice to the relevant regulations and bylaws.

5. Continuation of confirming the data of the subsidiary Commercial Register until it is corrected

The merchant must confirm the data of his subsidiary commercial register within the period specified in clause (1) of this mechanism in case of entitlement to the annual confirmation, and the provisions of the annual confirmation stipulated in the Law of Commercial Register and its executive regulations shall apply to him, until the completion of the correction of his subsidiary commercial register or the expiration of the period specified in clause (1) of this mechanism, whichever comes first.

6. Cancellation of the subsidiary Commercial Register upon the expiration of the specified period

The registrar shall delete all subsidiary commercial registers upon the expiration of the period specified in clause (1) of this mechanism, and the registrar shall reserve the trade name associated with the subsidiary commercial register from the date of its deletion for a period of (sixty) days. The merchant may extend the reservation and has the right to use or dispose of it after it is recorded in the commercial register.

7. The financial fee for services related to the subsidiary Commercial Register

The financial fee stipulated in the Implementing Regulation of the Law of Commercial Register applies to services related to the subsidiary Commercial Register.