The Ministry of Commerce clarifies the mechanism for spending profits of non-profit companies

التجارة توضح آلية إنفاق أرباح الشركات غير الربحية

The Ministry of Commerce clarified that non-profit companies must spend profits earned from their activities on the channels and areas specified in their memorandum of association or bylaws. It stated that non-profit companies may allocate up to 30% of their profits to strengthen investments and expand operations, unless the memorandum of association or bylaws provide otherwise, and may pay reasonable remuneration or benefits to managers, board members, or employees for services rendered. The Ministry noted it is prohibited for non-profit companies to distribute profits to members, managers, board members, or employees unless covered by the company's designated channels and areas, and that distributable profits may not exceed 10% of total profits.

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