The anti-concealment law has been a significant concern by foreign investors regarding their business future. It has been a part of the national program to combat commercial concealment by the Ministry of Commerce. Before, foreign entities used to partner with a Saudi national in concealed either to conduct business mutually or to benefit from his presence since non-Saudis were not allowed to engage in commercial activities solely. Lately, the Saudi government opened the country for international investors through the Ministry of Investment. The ministry offers several investment licenses to foreign companies, including those in the market earlier. In addition, the premium Iqama was introduced, giving non-Saudi individuals the privilege to operate their establishment or partner with a Saudi national. This article will provide some crucial tips on securing your investor license and complying with the anti-concealment law.
The Anti-concealment law poses severe penalties to any Saudi or non-Saudi practicing Tasattur. Violations can result in fines of up to five million riyals and imprisonment for five years. However, it also promised generous rewards for anyone whistleblowing or leading a business run by a concealing foreigner. While this raises significant concerns to current companies, especially those who already made their name in the market, the government offered a corrective period for non-Saudi companies to rectify their commercial status in exchange for avoiding liability.
To benefit from the correction period, several actions need to be settled as follows:
The Ministry of Commerce suggested three scenarios that determine the partnership between the foreigner and his Saudi partner.
As MISA license is reserved to foreign companies apart from individuals, the ministry listed Saudi presence and minimum capital on particular activities. On the other hand, it allowed entities looking to rectify their status within three years to meet the minimum capital requirement from requirements and exempted international presence in certain activities. Following key points of the investor license:
As we highlighted on most tips to comply with the anti-concealment law, making the right decisions would prevent unwanted scenarios. Finding a ground to partner with the Saudi party is crucial to avoid any possible complications. Second, maintain a medium-sized class in Monshaat and avoid practicing any of the restricted activities. Finally, secure a MISA license and maintain its validity.
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