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rules and regulations for doing business

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azfar789

Hi people,

I have few questions coming up in mind.. :)

Do we need to register the name of the company somewhere if we want to start some business? are there any taxes?

Can we do business while working in some organization?

TheLegendLeads

You (necessarily) have to be a Saudi national in order to register any business and the registration is made with the Chamber of Commerce on completion of certain lengthy requirements fulfillment.

Being an expatriate, you can be an investor and that's the only thing possible apart from investing in bourse. You have to have tens of millions of Riyals [depends on business nature], a legal attorney, 5-6 years of time etc. The government department that handles it is SAGIA. You may read details here: http://www.sagia.gov.sa/. The minimum tax percentage I have read somewhere on SAGIA is 25%.
----
Apart from above two things, rest everything is illegal and is prosecuted harshly. For example:

1- Working for someone who is not your sponsor (part time or full time). 'Someone' includes any business activity.
2- Tasatur: Having a Saudi as owner of the business but as sleeping partner.
3- and the list the long...

azfar789

TheLegendLeads wrote:

You (necessarily) have to be a Saudi national in order to register any business and the registration is made with the Chamber of Commerce on completion of certain lengthy requirements fulfillment.

Being an expatriate, you can be an investor and that's the only thing possible apart from investing in bourse. You have to have tens of millions of Riyals [depends on business nature], a legal attorney, 5-6 years of time etc. The government department that handles it is SAGIA. You may read details here: http://www.sagia.gov.sa/. The minimum tax percentage I have read somewhere on SAGIA is 25%.
----
Apart from above two things, rest everything is illegal and is prosecuted harshly. For example:

1- Working for someone who is not your sponsor (part time or full time). 'Someone' includes any business activity.
2- Tasatur: Having a Saudi as owner of the business but as sleeping partner.
3- and the list the long...


Thanks for the information... Please tell me about free lancing creative jobs like selling self made painting, photos or home tuition...

TheLegendLeads

azfar789 wrote:

Thanks for the information... Please tell me about free lancing creative jobs like selling self made painting, photos or home tuition...


Do understand the baseline: they are all prohibited, if being used to earn money (commercial use). Free-lancing, in fact, goes against point#1 I said above (working for someone who is not your sponsor).

There is a reward now to report anything illegal to Baldia (Municipality) officials. Even they have an app for that :)

That would mean:
- No legal support if you get into a conflict.
- if you get an upset client, you have greater chances of landing in hot waters. For example, there was a major clamp-down on a few of tuition centers (run by Indian teachers) in late 2013 on reports from angry parents.

We all know many people are doing home-based businesses. Almost all of them stay inside small communities and are not publicized.

isha.bendre

TheLegendLeads wrote:

You (necessarily) have to be a Saudi national in order to register any business and the registration is made with the Chamber of Commerce on completion of certain lengthy requirements fulfillment.

Being an expatriate, you can be an investor and that's the only thing possible apart from investing in bourse. You have to have tens of millions of Riyals [depends on business nature], a legal attorney, 5-6 years of time etc. The government department that handles it is SAGIA. You may read details here: http://www.sagia.gov.sa/. The minimum tax percentage I have read somewhere on SAGIA is 25%.
----
Apart from above two things, rest everything is illegal and is prosecuted harshly. For example:

1- Working for someone who is not your sponsor (part time or full time). 'Someone' includes any business activity.
2- Tasatur: Having a Saudi as owner of the business but as sleeping partner.
3- and the list the long...


Can A suadi National start the business with some expat partner?

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