Five conditions for a foreigner to partner with a Saudi or own an establishment

The first and second requirements are that the establishment’s total revenues should be over $10.66mln, or the number of employees should exceed 50

  
Downtown Riyadh Saudi Arabia. Image used for illustrative purpose.

Downtown Riyadh Saudi Arabia. Image used for illustrative purpose.

Getty Images

RIYADH The Ministry of Commerce has set five conditions for a foreigner to enter into a partnership with a Saudi investor or own a facility, in accordance with the corrective period for violators of the anti-tasattur regulation.

The first and second requirements are that the establishment’s total revenues should be over SR40 million, or the number of employees should exceed 50, according to the Undersecretary of the Ministry of Commerce Ayidh Al-Ghwainem.

The third of these conditions is that the commercial register should have been issued before the date of the corrective period, and the fourth is the right to set forth in providing the capital, gradually, for a period of three years, and the fifth of these conditions is the approval of the Saudi sponsor.

Al-Ghwainem explained that submitting an application to correct the cover-up (Tasattur) violation does not require the consent of the two parties.

In other words, one of the parties can submit a request for rectification, whether to become a partner or the owner of the facility or to obtain a privileged residence permit (Iqama) for small entities, and the corrective period has waived the requirement for the international presence of the beneficiary enterprise.

He said that the platform for correcting the status of violators of the anti-cover-up regulation is independent of all government and monitoring regulations.

Hence, all the information provided to the platform enjoys total privacy and confidentiality. The information provided by applicants for correction of their status is not shared with any party.

According to the Economic Journal, there is a specialist team to deal with the anti-cover-up regulation violators’ status

Al-Ghwainem said that the regulation has entered the correction period. Hence, a person who applies for correcting his status, has the right to enjoy immunity.

However, immunity does not mean continuing practicing cover-up (Tasattur), but rather continuing until full rectification of the situation and completion of the corrective period, noting, "the reports on cover-up (Tasattur) are still in place."

 

© Copyright 2021 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Policy