"Commerce" Clarifies the Expenditure Channels of Non-Profit Companies and the Controls for Their Establishment

"التجارة" توضح مصارف الشركات غير الربحية وضوابط تأسيسها

The Ministry of Commerce clarified the expenditure channels required to be specified in a non-profit company's bylaws, covering more than 20 activities including religious activities, education/training/research, health and psychological affairs, family and childhood care programs, vocational/health/social rehabilitation support, arts and culture, heritage and tourism, craft support, sports, legal services, IT/data/AI activities, and entrepreneurship and SME support. The law grants government entities, authorities, public institutions, universities, public-sector employees, and other legal persons the right to establish non-profit companies under the Companies Law. A public non-profit company may only take the form of a joint-stock company and must spend its profits on public non-profit channels, while a private non-profit company may take the form of a limited liability, joint-stock, or simplified joint-stock company and spend profits on any non-profit channels. The page was last modified 12 Rabi' al-Awwal 1447 AH.

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