What is a Monshaat Certificate and How to Issue It?

What is a Monshaat Certificate?

The Enterprise Size Certificate is an official document issued by the General Authority for Small and Medium Enterprises (Monshaat) in the Kingdom of Saudi Arabia. This certificate proves that the enterprise complies with the definition of micro, small, or medium enterprises based on specific criteria, such as the number of employees, annual revenues, and commercial registration. The certificate is granted electronically, free of charge and instantly, and is used to facilitate access to advantages and preferences offered by government and private entities.

Enterprise Classification by Size

The Authority adopts specific criteria for classifying enterprises, as shown in the following table:

Enterprise Type	Number of Employees	Annual Revenue (Saudi Riyals)
Micro	1-5 employees	Less than 3 million
Small	6-49 employees	3-40 million
Medium	50-249 employees	40-200 million

Importance of Monshaat Certificate

The Monshaat certificate is a vital tool for supporting entrepreneurs and small and medium enterprises, as it contributes to:

• Access to Government Preferences: Such as exemption from submitting preliminary guarantees in government competitions.
• Priority in Procurement: Preference for small and medium enterprises in limited competitions and direct purchases.
• Financing and Training Support: Facilitating access to financial and training support programs offered by Monshaat.
• Enhancing Competitiveness: Enabling enterprises to compete in the market by benefiting from government incentives.
• Transparency and Documentation: Providing an official document that proves the enterprise size to relevant authorities.

Conditions and Requirements for Issuing Monshaat Certificate

To obtain an enterprise size certificate, the following conditions must be met:

1. Having a Commercial Registration or Work File: The enterprise must have a valid commercial registration or work file number with the Ministry of Human Resources and Social Development.

2. Active Status: The commercial registration and enterprise file must be in active status.

3. Providing Employee Data: Submitting data on the number of employees registered with the Ministry of Human Resources and Social Development, with not less than one employee and not exceeding 249 employees.

4. Revenue Data: Entering annual revenue data, or filling out a declaration when issuing the certificate, ensuring that revenues do not exceed 200 million Saudi Riyals.

5. Applicant Authority: The applicant must have an approved role with the Ministries of Commerce and Human Resources and Social Development.

Steps to Issue Monshaat Certificate

Issuing an enterprise size certificate is a simple and free electronic process conducted through the Monshaat portal. Here are the detailed steps:

1. Login: Enter the Monshaat electronic portal (www.monshaat.gov.sa) and click on the enterprise size certificate issuance service link. Log in using the unified National Access account (Absher) or Monshaat account, or create a new account if necessary.

2. Select Enterprise: Through the "Enterprise File," select the enterprise for which you want to issue the certificate (main or branch commercial registration).

3. Enter Data: Enter enterprise data, including the number of employees and annual revenues, based on information registered with official authorities.

4. Issue Certificate: After entering the data, the electronically certified certificate will be issued instantly. You can print the certificate or send it via email.

5. Renew Certificate (if necessary): In case of certificate expiration or need to update data, a new certificate can be issued or the current one can be canceled and another issued.

Important Notes:

• The service is available through the Monshaat electronic website or service centers.
• A comprehensive guide of available training programs is sent to the beneficiary's email after issuing the certificate.
• Contact number for inquiries: 8003018888 or email: Info@monshaat.gov.sa.

Benefits of Monshaat Certificate

The certificate provides several advantages, including:

• Financial Exemptions: Such as exemption from submitting preliminary guarantees in government competitions.
• Facilitating Access to Financing: Through programs such as the Social Development Bank or government financing programs.
• Priority in Competitions: Preference for small and medium enterprises in government procurement.
• Training and Development Support: Access to Monshaat Academy programs and support centers.

Illustrative Example

Scenario: "Future Technology" company has an active commercial registration, includes 30 employees, and achieves annual revenues of 15 million Saudi Riyals. The company wants to participate in a government competition.

Steps:

1. Login through National Access to the Monshaat portal.
2. Select the company's commercial registration.
3. Enter employee data (30) and revenues (15 million riyals).
4. Issue the certificate instantly, which proves that the company is "small."

Result: The company is granted exemption from the preliminary guarantee in the government competition and is given priority in direct purchasing.

Looking for an Accounting System for Your Enterprise?

If you're looking for a reliable accounting system compliant with Saudi regulations, Mezan is a Saudi-developed cloud accounting software, compliant with ZATCA requirements and electronic invoicing system. Mezan provides comprehensive solutions for managing electronic invoices, inventory, financial reports, and point of sale, with free technical support available daily. Request a free demo or start your free trial today.

Frequently Asked Questions

1. What is the validity period of the enterprise size certificate?

The enterprise size certificate is valid for one year from the date of issuance, and after this period expires, it can be renewed free of charge through the same steps mentioned above.

2. Can more than one certificate be issued for the same enterprise?

Yes, a separate certificate can be issued for each commercial registration (main or branch) owned by the enterprise, and the current certificate can be canceled and a new certificate issued in case of data changes.

3. What if the enterprise data (number of employees or revenues) changes after issuing the certificate?

In case of changes to the basic enterprise data, the current certificate must be canceled and a new certificate issued that reflects the updated data to obtain the correct classification.

4. Do individual enterprises (without employees) need a Monshaat certificate?

Individual enterprises that do not include employees registered with the Ministry of Human Resources cannot obtain an enterprise size certificate, as it requires having at least one officially registered employee.

5. Can the certificate be used in transactions with the private sector?

Yes, the enterprise size certificate is recognized by the private sector and many financial and commercial institutions, and is used to provide facilities and services dedicated to small and medium enterprises.

Conclusion

The enterprise size certificate is a strategic tool that supports small and medium enterprises in the Kingdom of Saudi Arabia, facilitating access to government opportunities and financial and training support. Through a simple and free electronic issuance process, enterprise owners can enhance their competitiveness and achieve growth. If you manage an enterprise, hurry to obtain the certificate through the Monshaat portal to benefit from the available advantages. For more information, you can visit the Monshaat website or contact the support team.