المملكة: Unified industrial organization… 6 basic obligations for industrial project owners

The regulations stipulate the scope of application of the provisions of the system, with the exception of a number of industrial activities of a special nature, as the provisions of the system do not apply to projects operating in the field of oil exploration and extraction.

As well as projects whose activities are limited to extracting mineral ores without introducing any change to their content or Its form, due to the specificity of these activities and their subjection to independent systems and legislation.

Industrial Licensing Procedures

The regulations devoted an entire chapter to regulating industrial licensing procedures, as they stressed the necessity of the license applicant obtaining initial approval from the competent authority before commencing the implementation of the industrial project.

It explained that the initial approval request must include a set of basic data.

It includes the commercial name of the project, the name and nationality of the project owner, and the form. The legal nature of the facility, the nature of the industrial activity and the expected production capacity, along with a detailed statement of the industrial product and the invested capital, as well as any additional data or documents requested by the competent authority.

The regulations obligated the competent administration to decide on requests for initial approval within a period not exceeding thirty days from the date of submitting the application that fulfills all requirements, provided that the applicant is notified of the decision within a similar period from the date of its issuance. If the application is rejected, the decision must be reasoned. The expiration of sixty days without a response constitutes an implicit rejection.

Industrial licenses in Saudi Arabia

The regulations regulate the mechanism for submitting industrial license applications, whether to create a new project or to make any fundamental modification to an existing project, such as changing the activity, expansion, development, merger, division, changing the location, or disposing of the project in whole or in part.

It confirmed that these applications are submitted through the forms approved by the competent authority, while allowing the approval of the systems and forms. Electronic submission of applications, in line with the digital transformation adopted in the Gulf Cooperation Council countries.

In this context, the regulations stipulate the creation of a special register for registering applications for industrial licenses, arranged according to the priority of receipt of applications, and in which the date of submission and registration, data of the project owner, trade name, address, and type of industrial activity are recorded, in order to ensure transparency and ease of follow-up.

Industrial license applications

The regulation obliges the competent authority to decide on industrial license applications within a period of time. A maximum of thirty days from the date of submitting the completed application, with the applicant being notified of the decision within a period not exceeding seven days of its issuance. In the event of rejection, the decision must be reasoned, while the expiration of the decision period without a response is considered an implicit rejection of the application.

The regulations stressed the opening of a separate file for each industrial project, which includes the license application and all relevant documents, in addition to reports following up on the implementation of the project after licensing, and any amendments or updates that occur to it, in a way that contributes to documenting the project’s path since its launch.

The regulations stipulate that the licensed industrial project be granted an industrial license certificate according to the form Approved, as it is the official document that proves the regularity of the project and gives it the right to carry out its industrial activity in accordance with the specified conditions and controls.

Provisions of the Industrial Registry

In a separate chapter, the regulations dealt with the provisions of the industrial registry, as it required the owner of any industrial project to submit a request to register his project in the industrial registry within sixty days from the date of the start of actual production.

The registration request must include detailed data about the project, including its name and legal form, The owner’s name, address, activities and products, invested capital, actual and maximum design production capacity, production costs, and the size of the national and foreign workforce, in addition to any additional data or documents requested by the competent authority.

After verifying that the registration requirements are met, the competent administration grants the project owner a certificate of registration in the industrial registry, whether in paper or electronic form, with the project owner’s obligation to provide a copy of this certificate when requested by official authorities or when dealing with state institutions in everything related to the project. Industrial projects.

Industrial projects

The regulations obligated owners of industrial projects to renew the certificate of registration in the industrial registry annually, provided that the renewal request includes any updates or changes that occurred to the project, in accordance with the regulations approved in each country.

The regulations allowed the project owner, his heirs, or whoever has ownership of the project to obtain an extract from the project data registered in the industrial registry, in accordance with specific procedures and controls, while obliging the competent authority to issue the extract within ten years. Days from the date of submitting a completed application.

The regulations stipulate that the competent authority is obligated to issue an annual paper or electronic bulletin that includes data, information and statistics related to industrial projects registered in the industrial registry, and any amendments to them.

Industrial Projects

These bulletins include data on project owners, names and legal forms of industrial facilities, their activities, locations, products, and capacities. Productivity.

The regulation stressed the need for industrial project owners to commit to updating their project data annually, with a request to amend the data within sixty days from the date of any change.

The competent authority was granted powers to supervise and monitor industrial projects, to verify their compliance with the provisions of the system and regulation, and their fulfillment of the regulatory requirements and requirements.