Qiwa permits business ownership transfers without commercial registration under conditions

RIYADH — The Qiwa platform has clarified that ownership of a business without a commercial registration can be transferred to another person through the relevant licensing authority, with the updated ownership details reflected on the platform once the procedure is completed.The platform explained that the transfer process is handled by the Ministry of Commerce if the business holds a commercial registration, or by the relevant licensing authority if it operates under a license. The updated details are subsequently reflected on Qiwa.Regarding employees’ rights following a change of ownership, Article 18 of the Labor Law stipulates that employment contracts remain valid and an employee’s service continues to be counted when a business is transferred to a new owner or its legal form changes through a merger, division, or other means.The law also holds the previous and new owners jointly responsible for employees’ rights arising from the period preceding the ownership transfer, including wages, end-of-service benefits that would have been due on the date of the transfer, and other entitlements.In cases involving the transfer of ownership of individual establishments, the system allows the previous and new owners to agree to transfer all existing workers’ rights to the new owner, provided the worker gives written consent. If the worker does not consent, he has the right to request termination of his employment contract and receive his dues from the previous owner.