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Many people in Saudi Arabia want to start their own online business, especially in the field of e-commerce.
But the same question always comes up: "Can I start my store without a commercial registration?"
In this blog, we will explain the whole picture and provide practical steps to help you get started in a systematic and convenient manner.
1. Can you open an online store without a commercial registration?
The current system in Saudi Arabia requires every online store to be officially registered.
However, this doesn't mean you have to obtain a commercial registration from the first day. There are other systematic methods you can use to start, such as the freelance work permit, which is an excellent and easy alternative to the commercial registration and will be very useful when starting your project.
2. What is a freelance work permit?
The freelance work permit is issued by the Ministry of Human Resources and Social Development and is intended for anyone who works independently or runs their own business from home.
This document is free and can be obtained electronically in minutes. Once you obtain it, you can:
• Officially document your store
• Open a bank account in the name of the business
• Use electronic payment gateways such as Mada, Tamara, and others
• Deal with shipping companies without any problems
• Attend exhibitions or government initiatives dedicated to business owners
3. What Happens If You Start Without Any Documentation?
If you decide to start your store without a commercial registration or freelance work permit, you will face many difficulties, such as:
• Payment gateways refusing to register
• Difficulty dealing with shipping companies
• Inability to open a commercial bank account
• Inability to protect your trade name
• Possible violations from the Ministry of Commerce
It is best to start your project with yourself documented, whether with a document or an official record.
4. Issuing Documents Has Become Easy and Fast
The great thing about it is that everything is electronic these days.
You can obtain a freelance work permit from the "Freelance Work" website within minutes.
If you're ready to obtain a commercial registration, you can also do so from the Ministry of Commerce website for a small fee starting at 200 riyals per year.
There's no longer any complexity like before, and starting your own business has become easier than ever.
5. What's the difference between a freelance document and a commercial registration?
A freelance document is the best option for startups, small businesses, or those working from home.
A commercial registration, on the other hand, is more suitable if you intend to expand your business or work with major companies and suppliers.
A freelance document is free and quick to issue, while a commercial registration requires a small annual fee and gives you broader powers, such as registering your trademark and opening branches in the future.
Simply put: If you're just starting out, the document is sufficient. If your business expands, you can easily transfer to the commercial registration at that time.
6. When is the right time to obtain a commercial registration?
If your store begins to grow, you have steady sales, and you need to expand your delivery service or start dealing with larger companies, then it's appropriate to obtain a commercial registration.
However, for a start, a freelance document is sufficient and covers most of your needs.
Yes, you can start your online store without a commercial registration, provided you properly document yourself. The best option for you to start with is the "Freelance Document."
Documentation gives you credibility, protects you from any legal issues, and helps you grow your store in an organized manner.
And don't forget, if you need help building your online store or documenting it, you can contact the Sahal team, and we'll be with you from the very first step!
You can create your store easily
