Six Benefits To Legalize Foreigners Business In The Names Of Locals

KEY POINTS:

The Saudi Ministry of Commerce says there are six benefits to legalizing foreign business in locals’ names.
If foreigners’ business in the name of Saudi nationals is not proved, the punishment is five years imprisonment, a fine of five million riyals, confiscation of assets, and illegal money.

According to newspaper 24, foreigners’ business in the name of Saudi citizens is prohibited by law. Saudi citizens are not legally allowed to do business in the name of foreigners, nor are foreigners permitted to do business in the name of Saudi citizens. Doing such business is both a legal crime.

The Ministry of Commerce has given both Saudi nationals and foreigners time to bring the illegal trade under the law.

What Are The Benefits To Legalize The Business?

The ministry says those who bring such illegal businesses under the law will get six benefits, which are:

1. The Business will continue. No harm to the business

2. The punishments mentioned in the anti-foreign trade law in the name of Saudi nationals will get pardoned. No person will get punishment.

3. Income tax will not be effective.

4. Business holders can also perform other business.

5. Legal permission will get obtained to dispose of the relevant amount.

6. Business will stabilize and grow.

What Is The Punishment For Not Legalizing The Business?

The Ministry of Commerce has said that those who did not violate the law by doing business in the said manner can benefit by reforming by February 16, 2022.

Note: If foreigners’ business in the name of Saudi nationals is not proved, the punishment is five years imprisonment, a fine of five million riyals, confiscation of assets, and illegal money.