Does the online store need a license?

Sahl Sunday,22 Dec 2024

1. Why does an online store need a license?

In the Kingdom of Saudi Arabia, e-commerce is subject to laws and regulations that aim to regulate this vital sector and guarantee the rights of all parties. An online store license enhances customer confidence, protects store owners from legal problems, and ensures compliance with the regulations of the Ministry of Commerce.

2. What are the required licenses?

There are a set of licenses that must be obtained to operate a legal online store, the most important of which are:
• Electronic commercial register: It can be easily obtained through the Ministry of Commerce website.

• Registration on the Maroof platform: It increases the transparency of the store, and it is optional but recommended.

• Tax registration: If your annual sales exceed the minimum subject to value-added tax.

3. Detailed steps to obtain a license

• Create an account on the Saudi Ministry of Commerce website:
Log in to the electronic portal and log in using your national data.

• Choose the appropriate business activity:
Choose the activity that represents your electronic products or services.

Complete the payment process:
Pay the commercial register fees that vary according to the activity and its duration.

• Registration on the Maroof platform:
Optional but gives you an additional advantage to increase customer confidence.

4. Licensing costs
The fees for issuing an electronic commercial registration in Saudi Arabia are symbolic, starting from 200 riyals annually, in addition to the Chamber of Commerce fees that depend on the activity.
5. Benefits of obtaining a license
• Ensure legal continuity: Reduces the risk of sudden closure or ban.
• Increase customer confidence: Customers prefer to deal with licensed stores that provide guarantees.
• Access to professional services: You can benefit from reliable payment gateways and reputable shipping companies.
6. Risks in the event of not having a license
Working without a license exposes you to financial fines, possible closure of the store, and loss of customers. The authorities in the Kingdom take strict measures to ensure compliance with the legislation.

Obtaining a license for your online store is an investment in the credibility and growth of your business. Adhering to the laws gives you a competitive advantage in the Saudi market, which is witnessing a rapid development in the e-commerce sector, and helps you provide a reliable customer experience.