The Ministry of Commerce and Industry is considering introducing an automated mechanism to suspend the licences of companies that fail to pay outstanding fees for transactions involving amendments to their commercial registers, in a move aimed at preventing unpaid dues from accumulating and strengthening compliance.
The proposed mechanism follows the ministry’s suspension last Thursday of the licences of around 2,000 companies over unpaid fees and incomplete procedures related to amendments to company records. The ministry stipulated that the suspensions would be lifted only after the outstanding fees were paid and the pending procedures completed.
Ministry officials are examining several options to ensure that future violations are addressed promptly rather than allowing a large number of cases to accumulate before enforcement action is taken. One proposal involves activating automated electronic links between government agencies, enabling the Commerce Ministry to receive immediate notifications when transactions involving company amendments are processed through other authorities, particularly the Ministry of Justice.
Under the proposed system, if a company completes the relevant procedures with the Ministry of Justice but fails to fulfil the requirements or pay the fees due to the Commerce Ministry, its licence would be automatically suspended until the outstanding obligations are settled.
The use of electronic payment services would allow companies to pay their dues online without having to visit the relevant ministry and complete payments through traditional channels. Officials expect the approach to simplify procedures, improve coordination between government entities and strengthen the accuracy of official commercial records and documents.
The proposed enforcement mechanism would apply across different categories of commercial entities rather than being restricted to a particular company structure. These include single-person companies, limited liability companies, joint partnerships and limited partnerships.
Most of the unpaid fees relate to procedures involving the entry or withdrawal of a partner from a company, with each transaction costing 60 dinars. Completing both procedures would therefore involve fees totaling 120 dinars. Other company transactions also require documentation or coordination between the Ministry of Commerce and Industry and the Ministry of Justice.
The move comes amid amendments to the Companies Law that reorganised the procedures for authenticating company documents. Under the changes, the government notary’s authority to authenticate company documents was abolished and the responsibility transferred to the unit specialising in the Commercial Registry at the Ministry of Commerce.
The amendments also established mechanisms for coordination and the exchange of records between the two ministries. As a result, company owners can complete a range of procedures directly through the Commerce Ministry without having to obtain duplicate authentication from the Ministry of Justice.
The revised arrangements also reduce documentation costs by around 10 percent of the fees previously payable for the relevant transactions, representing the portion formerly collected by the Ministry of Justice. Company owners no longer need to pay separate fees to both ministries for procedures covered by the revised system.
Under the new arrangements, owners seeking to make changes to their company ownership records must register those changes with the Ministry of Commerce and pay the applicable ministry fees, without needing to visit the Ministry of Justice for the same procedures.
The proposed automated suspension mechanism is intended to ensure that companies complete the required procedures and settle outstanding fees promptly, while reducing administrative backlogs and improving the efficiency of coordination between government agencies.
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