Saudi Arabia will exempt small and medium enterprises (SMEs) from commerce fees register for three years as the Kingdom plans to boost the number of startups in the economy. Commercial entities will also need a single subscription only, even if they have multiple branches.
The measure works to correct conditions and raise efficiency, experts told Asharq Al-Awsat, adding that the chambers of commerce supporting SMEs in their first years of establishing projects is an essential factor given some of the financial challenges they may face when launching a project.
Saudi Minister of Commerce Majid Al-Qasabi issued the executive regulations of the commercial chambers law, which provide for exempting the commercial entities from chamber subscription in the first three years, as well as reducing the subscription in the subsequent years.
On his official twitter account, the Minister said, as per the regulations, multiple subscriptions are canceled, adding that only one subscription is needed regardless of the number of branches.
The move aims to support entrepreneurs, as well as SMEs in light of digital transformation.
Al-Qasabi indicated that the chambers of commerce governance rules were approved, along with a mechanism for measuring and evaluating chambers’ performance.
Saleh Al-Rasheed, the governor of the Small and Medium Enterprises General Authority (Monshaat), said that the exemptions and facilities provided by the chambers go to show the state’s support for business entrepreneurs and SMEs and its keenness to make the Kingdom more attractive for investments.
“The Ministry of Commerce strives to support entrepreneurs and SMEs, address their challenges, and reduce their costs,” Shura Council member Fadel bin Saad Al-Buainain affirmed to Asharq Al-Awsat.
Al-Buainain confirmed that the exemption and allowing different branches to share a single subscription will reduce the financial burdens that should be met by enterprises.
According to the Ministry of Commerce and Investment, the exemption will be granted to those wishing to issue a new trade register from the financial equivalent for three years and reduction for subsequent years.
