Selling your sole proprietorship or buying an existing one? Transferring ownership of a sole proprietorship's commercial registration is now an online service of the Ministry of Commerce on the Saudi Business Center platform. The online step is easy; what matters is before it: the new owner undertakes to assume all obligations of the current owner. Here are the conditions, fee and steps as published by the Ministry, and what to check before you buy.
| Item | Detail |
|---|---|
| Channel | Saudi Business Center platform, login via Nafath |
| Fee | SAR 500 |
| Processing time | Within 72 hours |
| Who starts | The current owner; the new owner accepts from their account |
Reviewed by: Rakan Jameel Al-DubaisiFounder & CEO of USUS Law FirmLast updated:
Conditions
- The commercial registration is active.
- The new owner does not already own a sole proprietorship registration.
- The new owner is not a government employee and is at least 18.
- The trade name is not the transferor's personal name.
If the owner has died
An heirship deed, a guardianship deed if there are minors, a power of attorney from all heirs to transfer the establishment, and a sale and assignment contract from the heirs stating the registration details.
Before you buy: the obligations come with it
Because the new owner assumes the current owner's obligations, check debts, cheques and promissory notes, enforcement requests, employees' contracts and end-of-service dues, social insurance, zakat and VAT, municipal licences, the shop lease and any lawsuits. Then sign a written sale contract setting the price, what is included, and who bears liabilities that surface later from the previous owner's period.
Frequently asked questions
What is the fee to transfer a commercial registration?
SAR 500 according to the Ministry of Commerce service page, processed within 72 hours.
Do the establishment's debts pass to the new owner?
The new owner undertakes on the platform to assume the current owner's obligations, so check debts and lawsuits first and allocate later liabilities in the sale contract.
Usus Law Firm reviews establishments before purchase and drafts sale and assignment contracts. See our commercial and corporate lawyer in Riyadh.
Legal review: the Usus Law Firm team
A select team of lawyers and legal advisers licensed by the Saudi Ministry of Justice, working from Riyadh and Tabuk, with experience before the general, commercial, labor, criminal, personal status and administrative courts. Every article is reviewed before publication and updated when laws or regulations change.
Last reviewed: 27 October 2026
This article is general legal information and is not a substitute for advice on your specific case. Court proceedings in Saudi Arabia are in Arabic; the official Arabic text of each law prevails.
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