Several newly established businesses that have failed to maintain their bank accounts or get their accounts audited are finding it difficult to take their expatriate employees under their sponsorship.
“Companies that do not maintain their bank accounts will not be able to renew the iqamas of current employees who are already under their sponsorship or take on new employees under their sponsorship because they are not fully registered with the Ministry,” says Badr Mohammed, former member of the Entrepreneurs Committee at the Jeddah Chamber of Commerce and Industry (JCCI).
“Companies receiving commercial licensing must provide entrepreneurs with some kind of training or workshop to educate them and keep their companies from closing down due to inaccuracies.”
Mohammed added that companies won’t receive a zakat certificate (FGFG) if bank accounts and company audits are not maintained and that this will eventually result in their being unable to qualify for the stamped legal certificate from the Ministry of Finance.
“A business will only be allowed to sponsor expatriate employees and renew the iqama of their current staff under their sponsorship with these certificates at hand.”
Businesses are given commercial licenses at the time of their establishment, but some companies fail to maintain their accounts. This has been the case with several small and medium-sized businesses in the Kingdom.
“I agree that there should be some kind of awareness given to the entrepreneur about why it is so important to keep a record of all their business transactions and maintain checks and balances of business accounts,” said Ali Shah, CEO of business-consulting firms ASCS and VRS.
“There must be an entire department devoted to dealing with such matters. The prime reason is to maintain standards of service and products given to the public in order to avoid corruption and money laundering in the name of business.”
Recruitment ban for firms failing to audit accounts
