QUESTIONS & ANSWERS

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The product shall be manufactured in the Kingdom of Saudi Arabia in accordance with industrial license for the products of industrial enterprises, and percentage of local inputs shall be no less than 40% of its basic components. It is noteworthy that the maximum added products shall be three types of products as maximum in the same certificate.

This can be done by presentation of application for professional consulting license electronically by access to the electronic portal of the Ministry of Commerce with the documents attached thereto. Specialists of the Ministry review the application after approval. The Ministry shall review compliance and obtain the original license. To obtain license, applicant shall be Saudi or GCC citizen, and shall not have public post. He shall hold university certificate in the required specialization and three years of experience.

Trademark is protected after registration for 10 renewable years.

Minimum capital in partnerships is SAR 5000.

Commercial registration can be electronically cancelled through the business gate of the Ministry of Commerce. Insert the list of my registers, and select the register to be removed and confirm final removal of it, then send the application. Afterwards, the cancellation certificate will be electronically printed.

Note: If commercial registration is electronic, removal procedures will be done by verification with the Ministry of Commerce and confirmation that there is no job in the same register to be removed.

Application shall be 18 years old, and shall not be civil servant, with copy of national ID, which shall be authenticated by the Ministry of Foreign Affairs or embassy of Saudi Arabia in the GCC country.

Yes, mortgagee shall be preferred over all other creditors in collection of the value of debt from mortgaged properties.

Presentation of complaint to the General Administration for Control of Commercial Fraud as authority in charge of controlling violations in accordance with the anti-commercial fraud law.

The complaint shall include what is recorded in ownership of trademark such as valid trademark registration certificate and presentation of sufficient evidence to support the case such as purchase invoices, samples of original and fake products and detailed report on it. Differences between the original commodity and imitated commodity shall be preferred.

Saudi partner shall have license for practice of the profession, and foreign partner shall be corporate person (company) that practices this profession for no less than 10 years. Saudi partner’s share in the company’s memorandum of association shall be no less than 25%.

Organization can be transformed to a company electronically. In addition, company can be transformed from a sole person company under limited liability for closed joint-stock entity.

Memorandum of association of the company can be electronically amended by amendment, partners’ resolution and drafting the partners’ resolution or company’s manager in accordance with the capacity of memorandum of association. By this method, necessary amendments can be made, such as increase or decrease of capital or transformation from an entity to another or amendment of trade name or entry or exit of partners.

Trade names can be booked through the business portal and choice of required name. Applications can be inspected by auditors of the Ministry of Commerce. In case of approval, applicant will be granted 60 days for registration in the commercial register.

Discount license can be electronically issued with addition of stores and presentation of applications for authorization of discount since it explains the discount type and commercial register and products to be discounted through which the period of discount is defined and list of products are identified. After payment of governmental charges, license shall be issued on the importance to put it in prominent place in the store during the period of sale.

When commodity is one of the commodities defined by government such as prices of fuel, electricity, cement and barley, and if there is exaggeration in their prices, specific punishment will be imposed on violator.

Agreement between two parties (attendant and mortgagee) whereby the first shall present debt guarantee, and includes amendment and addition of it.

There is a commercial register where commercial real estate mortgage contracts are registered, which are the real estate   mortgages of transferred properties. In case debtor fails to fulfill its declared obligations, issuance of direct enforcement or execution deed may be requested.

Yes, mortgagee shall be preferred over all other creditors in collection of the value of debt from mortgaged properties.