Wednesday, 17 February 2016

Is it legal to run home based Business in Saudi Arabia?

There are a lot of expatriates running home based business in Saudi Arabia. People are running beauty parlors, tuition and coaching centers, babysitting arrangement and selling of different products through social media like facebook groups. If you have joined some groups on facebook related to your city in Saudi Arabia, you must have found many advertisements selling different kind of things there. I find them too annoyed as they reserve a lot of space on my Newsfeed. Having said all this, have you ever thought if this business is legal in Saudi Arabia? I have tried to uncover it in the below link.

Let’s start from the coaching and home based tuition centers, one needs to get permission to start it from Ministry of Education. In order to start buying and selling at home, you need to get a license from Ministry of Commerce and Industry. Home Based business managed by expatriates in Saudi Arabia has become an industry which is out of control of the government. People have been buying and selling clothes and other related material from there, sending their kids for coaching and getting themselves beautified from there. We find them cheaper as they don’t have to pay extra cost of rent and other operating cost so they can afford to reduce its price. These are many benefits of trading with home based businesses but are they really legal?

It is absolutely illegal to run home based business in Saudi Arabia by expatriates. Expatriates should not be involved in this kind of business if they really want to spend their time peacefully. In case, if somebody complaints about it to the Jawazat or labor office, you will be in deep trouble. If you are caught running home based business in Saudi Arabia, minimum punishment will be;

  1. A fine of SR 25,000 or more as per the size of the business
  2. Immediate detention of the individual running the home based business
  3. Detention of the sponsor of the home based business if the individual running the business is dependent
  4. Deportation with a 5 years ban

I would advise everyone to not to play with the system. Rules and regulations have been made for our safety. When we are living in a country, it is our duty to obey the rules. I don’t think one should risk his career to add some additional income in your portfolio.

Other Laws of Saudi Arabia
  1. SR 3,000 fine per Employee, if salary is not paid on time
  2. SR 2,000 for keeping worker’s passport and SR 50,000 fine for selling visas
  3. SR 25,000 fine if you are not wearing safety equipment in Saudi Arabia
  4. SR 1,000 Fine on Woman caught not wearing Hijab
  5. Male Doctors are banned to see Female Patients


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