When we talk about shop license fees, we are talking about the amount we have to pay to local authorities to obtain legal permission to operate the business. The size and nature of these fees vary based on the laws and regulations of each region and municipality, and it may seem that paying these fees represents an additional financial burden on small and medium business owners.
But the truth is that it is a necessary investment to ensure compliance with laws and regulations and to provide a safe and prosperous business environment for buyers and sellers alike, so in this article we will learn in some detail about what these fees are.
Shop license fees
It is a permit that allows business owners to practice their activity in the sale and purchase of products and services, as well as import and export them. This license is necessary for the establishment and operation of any commercial shop, whether it is a small store or even a chain of large stores.
How much does it cost to obtain a shop license in Saudi Arabia?
There are generally no specific fees for obtaining a business license, but they are calculated according to the type of business you are doing, so this means that the fees will vary from city to city and from one business to another.
Note
To obtain accurate information about the fees for the business license in your area, you can visit the local authorities’ Balady platform, which usually provides a fee calculator to help you calculate the amount required on the basis of your business information. So you just need to enter all your data correctly and accurately, and the system will calculate the appropriate fees for you.
How much is the fine for the expiration of the license to open a shop and not renew it?
When a man does not pay the fees for a commercial shop license and the license expires and is not renewed on time, the shop owner must pay financial fines imposed by the authority responsible for granting licenses. In this context, I will review for you the fines imposed when the license to open the shop expires and it is not renewed:
A fine of 200 riyals for the expiration of the shop license for those who delay the renewal from one day to one year.
400 riyals: This is a fine for the expiry of the shop license for those who are late in renewing from one to two years.
The fine for the expiry of the shop license is 500 riyals for those who are late in renewing for two years or more.
Note
It is important that shop owners commit to renewing their licenses and paying shop license fees in a timely manner to avoid paying these fines. In addition to financial fines, failure to renew the shop license may result in other consequences, such as closing the shop or withdrawing the license permanently, so it is recommended to follow the dates of license renewal and adhere to the required procedures to avoid potential problems.
Where can I get a shop license?
When you want to obtain a shop license, you can do so by taking advantage of the National Single Sign-On, and here are the simple steps to obtain a shop license:
- Log in via National Single Sign-On: Log in to the National Single Sign-On website for business service.
- Start the service: Once on the site, click on “Start Service” to start the process of applying for a shop license.
- Select Region: Select the area where you would like to obtain a shop license.
- You can choose the area that matches your business.
- Choose Secretariat: After selecting the region, select the secretariat to which the selected region belongs, as there is a list of different secretariats to choose from.
- Select Municipality/Service Centers: After selecting the municipality, choose the municipality or centers that provide shop licensing services.
- Click on the requirements and procedures for the service: Before starting to fill out the application, it is recommended to read the requirements and procedures for the shop license service.
- Enter the applicant’s details: Enter your personal data and the necessary contact information.
- Click on “Next.” After completing the applicant’s details, click on the “Next” button to proceed to the next step.
- Enter activity details: Enter the details of the business you want to obtain a license for.
- Click “Next”: After entering the activity data, press the “Next” button to move on to the next step.
- Enter the order data: Enter more required details according to the form provided.
- Click “Next”: After entering the order details, click on the “Next” button to move on to the next step.
- Enter attachments: In this step, you may be asked to upload the necessary attachments, such as identity documents and the necessary licenses.
- Submit the request. After you have entered all the required information and uploaded the attachments, click on the “Send Request” button.
Note
Upon completion of these steps, you may also need to make the payments required to complete the license application, as you can pay the shop license fees through the SADAD system, which can be accessed through this link.
Steps to issue a shop license in the Kingdom of Saudi Arabia
Now that you know the fees for a shop license, if you are wondering about the steps to issue a new shop license in Saudi Arabia, here are the basic steps on how to do it:
Access the official website of the National Nafath platform.
You must enter the official website of the National Nafath platform, which provides electronic services for businesses in Saudi Arabia.
Log in to your own account.
After accessing the platform, log in to your own account, but if you do not already have one, you must create a new one.
Access to the “Professional Licenses” service
Once logged in after paying the shop license fee, look for the “Professional Licenses” service in the main menu.
Choose from simplified services.
On the Professional Licenses page, you will find several options; search for “Simplified Services” and choose this option from them.
Issuance of a simplified license
After accessing the simplified services, find the “Issue Simplified License” option and click on it.
Choose the secretariat and municipality.
You will see a list of the various secretariats and municipalities in the Kingdom. So choose the secretariat or municipality to which the area to which you wish to issue your license belongs.
Submit the application and fill in the data.
Submit the application by filling in all the required data for the shop, such as type of activity and geographical location, and then make sure that all information is provided correctly and completely.
Upload the required documents and submit the application.
You must upload all the required papers and documents with the application, and once the data is complete and the papers are uploaded, send your application to the concerned municipality.
Previews and Reports
The municipality will send an inspector for inspection after paying the license fees for a commercial shop and submitting reports related to your shop in order to evaluate the shop and ensure that it complies with the specified conditions and requirements.
Approval of the application and payment of the invoice
After inspection and fulfillment of the required conditions, your application will be approved by the municipality, and an invoice will be issued that you must pay.
Payment of fees and printing of the license
Pay the required shop license fees, follow the procedures to pay them, and remember that once you have paid the fees, you will be able to print your trade license.
Start the work
It is worth noting that, after receiving your trade license, you can start working in your shop without any problems.
Conclusion
We shed light on an issue that concerns many shop owners, namely: shop license fees, as it is a controversial issue and deserves to be seriously discussed. Although fees are an essential part of business legislation, some voices believe that they impose an excessive burden on entrepreneurs and hinder the growth of the commercial sector. Therefore, we call for reconsidering these fees and evaluating them carefully in order to ensure that they reflect the current economic reality and encourage investment and economic growth; they provide the project with legal legitimacy, contribute to the protection of consumers, and provide a suitable work environment, in addition to promoting economic growth, so if you face any problem, do not be shy to ask for help; the Qoyod program is available for you around the clock.
The program offers all its customers: electronic invoice systems as well as point-of-sale systems, stores, customers, etc. And so forth, making it the best affordable accounting software.
Now that you know what the shop license fee is, try Qoyod now for free and for 14 days. It is an accounting software that exists to help SMEs be on top.
Join our inspiring community! Subscribe to our LinkedIn page and Twitter to be the first to know about the latest articles and updates. An opportunity for learning and development in the world of accounting and finance. Don’t miss out, join us today!
