Under Article 16 of the Saudi Companies Law, every company must have a fiscal year of exactly 12 months, and the specific start and end dates must be defined in the company's articles of incorporation or articles of association. The only exception is the first fiscal year, which may be shorter or longer than 12 months but must fall within a range specified by the Law, allowing new companies some flexibility when they launch mid-year.
Article 17 requires all companies to maintain proper accounting records and supporting documents related to their activities, contracts, and financial statements. These records must be kept at the company's head office in the Kingdom. This is a strict compliance obligation — failure to maintain adequate records can expose the company and its management to legal liability.
For expats managing a Saudi company, it is worth noting that Saudi Arabia's fiscal year for government purposes follows the Gregorian calendar, and most businesses align accordingly (January to December). However, your company's articles can specify a different 12-month period if it better suits your business cycle. Work with a qualified local accountant from day one to set up a compliant bookkeeping system and ensure your financial statements are prepared in a timely manner each year.
This is general legal information, not legal advice. For advice on your specific situation, consult a lawyer licensed in Saudi Arabia.