Qiwa permits business ownership transfers without commercial registration

Saudi Arabia's Qiwa platform has clarified that business ownership transfers can proceed without commercial registration through the relevant licensing authority, with updated ownership details reflected on the platform once the procedure is completed. The clarification was published on 22 October 2026.

Transfer procedures by registration status#

The transfer process is handled by the Ministry of Commerce where the business holds a commercial registration. For businesses operating under a license without commercial registration, the relevant licensing authority processes the transfer. Updated ownership details are subsequently reflected on the Qiwa platform following completion of either procedure.

Employment contract continuity under Article 18#

Article 18 of the Labor Law provides that employment contracts remain valid when a business is transferred to a new owner or its legal form changes through merger, division or other means. An employee's service period continues to be counted following the ownership change. The previous and new owners are held jointly responsible for employees' rights arising from the period preceding the transfer, including wages, end-of-service benefits that would have been due on the transfer date, and other entitlements.

Worker consent requirements for individual establishments#

For transfers involving individual establishments, the system permits the previous and new owners to agree to transfer all existing workers' rights to the new owner, provided the worker gives written consent. Where the worker does not consent, that worker has the right to request termination of the employment contract and receive dues from the previous owner. The consent requirement applies specifically to transfers of individual establishments under the regulatory framework.

Registration and licensing authority roles#

The Ministry of Commerce processes ownership transfers for businesses holding commercial registration. Licensing authorities handle transfers for businesses operating under license without commercial registration. Both pathways result in updated ownership records on the Qiwa platform, which serves as the central system for employment and business registration data in Saudi Arabia.