Legal News Until 29/02/2024

latest legal news in local newspapers:

Bin Arafa Group for Legal and Legal Consultants is keen to inform you of the most important news related to your business, labor and commercial activities and the legal updated information correlated with it. We provide you with the latest legal news published in the local newspaper this week which may affect your business. We illustrate Herein below the latest news:

 

Directory of services for foreign companies wishing to open regional headquarters in the Kingdom.

The Ministry of Commerce revealed that it provides electronic services to foreign companies wishing to open a regional headquarters after obtaining a license from the Ministry of Investment, and these services are issuing the regional headquarters as a branch of a foreign company, establishing the regional headquarters as a foreign company, issuing, amending and renewing the commercial register, and reserving the trade name.
These services can be provided electronically through its electronic branch as well as through the Saudi Business Center platform.

 

The Zakat, Tax and Customs Authority invites businesses to submit VAT returns for January this year.

The Authority has called on businesses subject to VAT whose annual supplies of goods and services exceed SAR 40 million to submit their January tax returns no later than February 29.
The Authority urged establishments to expedite the submission of their tax returns through its website, or submit and pay through the Authority’s application, in order to avoid the fine for late submission of the return within its specified period, at a minimum of 5% and a maximum of 25% of the value of the tax that the taxpayer was required to declare.

 

Approval of the issuance of tax rules for regional headquarters in the Kingdom of Saudi Arabia.

um Al-Qura newspaper published the tax rules for regional headquarters, which aim to determine the provisions related to tax incentives granted to regional headquarters.
According to the rules, regional headquarters that meet the qualification criteria issued by the competent authority shall be granted the following tax incentives:
• Zero percent income tax on eligible income.
• Zero percent withholding tax on payments made by the regional headquarters to non-resident persons, according to the following: dividends, payments to related persons, payments to unrelated persons for services necessary for the regional headquarters activity.
Tax incentives from these rules shall be granted to the Regional Headquarters on activities eligible by the Competent Authority for a renewable period of 30 years, and the period of granting tax incentives to the Regional Headquarters shall commence from the date of obtaining the Regional Headquarters License to carry out Eligible Activities until the date of any of the following: The expiration of a period of 30 years, the entity ceases to be a regional headquarters for any reason.
The requirements of the rules the regional headquarters must meet all of the following actual economic conditions:
1. The regional headquarters shall have a valid license issued by the competent authority,  and shall not practice activities other than those within the scope of this license.
2. The regional headquarters shall have appropriate assets, including a building suitable for the exercise of its activities in the Kingdom.
3. To direct and manage the activities of the regional headquarters, including the holding of meetings of the Board of Directors in the Kingdom of the regional headquarters through which strategic decisions of the regional headquarters are made.
4. The regional headquarters shall incur operational expenses in the Kingdom suitable for the exercise of the activities of the regional headquarters.
5. The regional headquarters shall generate revenues resulting from qualified activities in the Kingdom.
6. The regional headquarters must have at least one director residing in the Kingdom.
7. The Regional Headquarters shall have a sufficient number of full-time employees during the tax year, commensurate with the activities of the Regional Headquarters.
8. The staff of the regional headquarters shall have the necessary knowledge and experience to enable them to perform their tasks and responsibilities.
In the event that the regional headquarters does not meet any of the actual economic requirements during the validity of the license period, the authority notifies the regional headquarters of the violation attributed to it and grants it a corrective period of 90 days from the date of notification, and in the event of non-correction, a fine of 100 thousand riyals will be imposed, provided that the violation is corrected within 90 days from the date of inflicting the fine, and in the event that the violation is not corrected within 90 days of the fine, or in the event that the regional headquarters repeats the same violation. Within 3 years from the date of imposing the fine, a fine of 400 thousand riyals will be imposed, provided that the violation is corrected within 90 days from the date of the fine.
In the event that the regional headquarters continues to violate after imposing the fine, the Authority, in coordination with the competent authority, may suspend the tax incentives.

Legal News Until 25/02/2024

latest legal news in local newspapers:

Bin Arafa Group for Legal and Legal Consultants is keen to inform you of the most important news related to your business, labor and commercial activities and the legal updated information correlated with it. We provide you with the latest legal news published in the local newspaper this week which may affect your business. We illustrate Herein below the latest news:

Approving the rules of using the name of Saudi Arabia and the names of cities, regions and public places in the commercial name

The minister of Commerce issued this year the rules and conditions for the use of the name of Saudi Arabia and the names of cities, regions and public places in the commercial name, and included the following:

  1. The commercial name should not be identical or similar to the name of one of the government entities or projects, and the like.

  2. The name of Saudi Arabia, the name of the city, region or public place should not be the essential element or the main component of the commercial name.

  3. The commercial name should not resemble a world-famous trademark, or resemble a registered or famous trademark in the Kingdom, unless the trademark is owned by the applicant.

  4. The owner of the trade name undertakes not to defame or offend the reputation of the kingdom, cities, regions or public places with the trade name.

Companies that bear the name of Saudi Arabia or the names of cities, regions or public places when expanding or merging are excluded from these rules.

In addition, the registration of the trade name, including the name of the holy cities of Makkah and Madinah, is excluded from these controls, in respect of which The Associated controls were issued in accordance with the Royal Decree No. (9311) and the date of 8 /2 /1444

Finally, the concerned department receives applications for registration of trade names bearing the name of (Saudi Arabia) or the names of cities, regions or public places, and studies them to consider accepting or rejecting them in accordance with these rules.

Issuing a Fal real estate license for individuals and establishments

This year, the General Real Estate Authority has introduced the real estate platforms licensing service with the “FAL” license for real estate brokerage and marketing, and a new feature that allows the manager of a real estate brokerage facility to register his facility based on his authority in the commercial register without requesting an electronic agency, within the electronic services of the real estate brokerage system.

The authority explained that this service allows the legal representative of the platform to request a license for his electronic real estate platform with the “FAL” license for brokerage and real estate marketing for real estate platforms, and it also requires the platforms that were licensed before the brokerage system came into force to re-license, and request a license to use this service according to the real estate brokerage system.

We also point out that the “FAL” real estate license is a license granted by the General Authority for real estate to individuals and establishments whose field of interest is to practice brokerage activities and real estate services in Saudi Arabia, where the FAL real estate license is granted to practitioners of activities that fall under the brokerage and real estate services system.

The FAL license in the kingdom of Saudi Arabia consists of five practitioner licenses and a sixth license for real estate advertising, which are as follows:

1-FAL brokerage and real estate marketing license: FAL brokerage and real estate marketing license enables to mediate the completion of any real estate transaction between the two parties in exchange for a commission, for individuals and companies in Saudi Arabia, as well as the marketing of real estate, whether through advertising means or direct marketing in offices, exhibitions and others.

2-FAL license for property management: the FAL license for property management in Saudi Arabia is a special license for establishments that enables the establishment to manage the financial and administrative affairs of any property in the kingdom on behalf of others, as well as there is a FAL license for Facilities Management, which is a special license for establishments that authorizes the establishment to manage the technical affairs of any property in Saudi Arabia on behalf of others, also a FAL license to manage and organize auctions, which is specialized in establishments, it is a license that enables the establishment to take over the functions of displaying real estate for sale at public auctions, including electronic real estate auctions in Saudi Arabia.

3-FAL real estate consulting and analysis license: the FAL real estate consulting and analysis license is a license that enables enterprises and individuals to provide real estate analysis, consulting and opinion related to the real estate sector to the public through any media or to a beneficiary of the service.

4-Real estate advertising license: the real estate advertising license in Saudi Arabia is a license granted to advertise real estate, regardless of the practitioner’s actual license, it is a license granted to publish visual, audio, read and electronic advertisements regarding real estate, for the purpose of disposing of real estate, whether through television, radio, roads, printed newspapers, electronic platforms, social media and other means.

Conditions for obtaining a real estate brokerage license for individuals and establishments:

Terms of the real estate brokerage license “FAL ” for individuals:

* Saudi National.

* 18 years old.

* The full-fledged license applicant must not have been convicted of a crime that violates honor or honesty.

* Passing the qualification program for each activity.

* Fulfillment of the financial remuneration for the license, except for the license to practice marketing and real estate advertising.

Terms of the real estate brokerage license “FAL ” for offices and establishments.

* A valid Commercial Register, including the activities to be licensed.

* The responsible manager must be fully competent and not convicted of a crime against honor or honesty.

* The responsible manager should be qualified to practice the activity as determined by the authority.

* Payment the financial fees of the license, except for the license to practice marketing and real estate advertising.

UQNNEWS Published the Implementing Regulations of the Private Sector Participation Law modified the decision of the board of Directors of the National Center number (1 /4/ 2023) date 18 /6/ 1445 – 31 /12/ 2023.

The regulation included the principles of allocation, where it required the executives and the relevant team when exercising its functions and powers in allocation projects to take into account the following:

1 – fairness: that the treatment of all competitors from the private sector be objective and impartial.

2-transparency: to implement allocation projects transparently, and to enable competitors, private parties and government agencies to access information related to the allocation project at all stages.

3-the effectiveness of contracts: the provisions of the contract concluded in accordance with the provisions of the law shall be the basis for determining the rights and obligations of contractors, and the main reference governing the relationship between them.

4-planning: allocation projects should be put forward and implemented according to pre-prepared plans and studies, enabling the public and private sectors to prepare and prepare for them and provide the necessary resources before submitting these projects for implementation.

5-feasibility: privatization projects should achieve the development feasibility of the government, and the economic feasibility of the public and private sectors.

The regulation also specified the minimum value of the allocation project and the criteria for applying the system to allocation projects according to the following:

1-non prejudice to the controls contained in the system to consider any project related to infrastructure or public service as an allocation project; any project related to infrastructure or public service is not considered an allocation project subject to the provisions of the system unless the value of the project reaches the minimum.

2-the minimum amount of the Asset Transfer Project (50.000.000) shall be fifty million riyals, calculated based on the estimated value estimated by the executive body of the assets to be transferred ownership.

3-the minimum amount of the public-private partnership project (200.000.000) shall be two hundred million riyals, calculated based on the total nominal value expected for the duration of the project estimated by the executive after calculating each of the following elements independently and achieving the minimum in any of them:

* Capital and operating expenses, plus government-owned assets in respect of which the private sector is granted any rights (including transfer of ownership), if any.

* Possible financial obligations arising from the general treasury of the state.

* Financial revenues expected to be received by the government.

4-the executive body may include more than one project of a similar nature in its scope and contractual structure, in order to achieve the minimum value of the allocation project.

5-if the minimum stipulated in this article is not achieved and the concerned authority considers continuing to put forward the project related to infrastructure or public service, the relevant laws and regulations shall be applied to put forward that project.

Legal News Until 15/02/2024

latest legal news in local newspapers:

Bin Arafa Group for Legal and Legal Consultants is keen to inform you of the most important news related to your business, labor and commercial activities and the legal updated information correlated with it. We provide you with the latest legal news published in the local newspaper this week which may affect your business. We illustrate Herein below the latest news:

Issuance of the Official Communications Regulation and maintain order of Documents and Information

Um Al-Qura newspaper published the list of official communications and maintain order of documents and their information, and it turned out that the regulation aims to develop controls that regulate and document incoming and outgoing correspondence, as it included Article Eight of the same regulation, provided that the sections of the message are taken into account within the framework according to the following: (subject, addressee, greeting, preamble, presentation and discussion, result, termination, sender, supply), and commitment to the content of this article is of importance in order not to be returned to its source for modification, or rejection by the reciepnt.

 

New guide to raise the safety of agricultural products and stopping food poisoning

The Ministry of Environment, Agriculture, Water and Living Resources has issued a guide to the quality and safety of agricultural products in the Kingdom, and the Ministry will commit to working with it after the final approval.

The guide aims to conform agricultural products to the standard specifications of quality and safety approved in the Kingdom, ensure the safety of their safe access to the consumer and free from (microbial, chemical and physical risks), and support the control work on those products in farms and public benefit markets through the development of standards and specifications and the governance of control and calibration operations, and issued a guide that includes information on agricultural products and the permissible limits of pollutants according to specifications and standards. The decision indicated that the required quality includes nutrition elements (ingredients, vitamins… appearance, smell, taste, color, size, shape and texture)”, quality of storage, transportation to markets, consumption, processing and safety when ingested does not pose harm to human health.

Civil Transactions Law

A promise whereby one or both parties undertake to conclude a contract in the future shall be binding only if the essential issues of the contract to be concluded, the period for which it must be concluded and the conditions thereof are met at the time of the promise, including any formal conditions required by the statutory provisions of that contract.

 

Legal News Until 08/02/2024

 

“The Ministry of Commerce invites companies to amend the Memorandum of Association in line with the new Companies Law through the Business platform”

The Ministry of Commerce invited existing companies that were established before the entry into force of the new Companies Law on January 19, 2023, to amend their Memorandum of Association in line with the new Companies Law, and the Ministry clarified to companies that the amendment of the Memorandum of Association is through the (Business Platform) of the Saudi Center for Economic Business, according to Royal Decree No. (M/132) dated 1/12/1443 AH, which stipulated that all existing companies must amend their status in accordance with the new system

 

“Ministry of Finance and National Debt Management Center Launch First Savings Product for Individuals”

 The Ministry of Finance and the National Debt Management Center launched the first government-backed savings product for individuals, under the name “Sah”, which is derived from the initials of the phrase “government sukuk”

The Ministry explained that the launch of the “Saha” product comes within the initiatives of the Financial Sector Development Program (one of the programs of Saudi Vision 2030) aimed at raising savings rates among individuals by motivating them to deduct part of their income periodically and allocate it to saving, in addition to increasing the supply of savings products, enriching financial culture and raising awareness of the importance of saving and its benefits to plan future goals

As explained by the National Debt Management Center, these sukuk fall within the program of local sukuk denominated in Saudi riyals, which will be offered on a monthly basis according to the announced calendar of issues for the “Sah” product, indicating that “this initiative represents an incentive for the private sector to cooperate and participate in the development and launch of a number of savings products for specific goals for different categories of individuals, whether through banks, fund managers, financial technology companies and others

The Ministry also stated that the Shariah-compliant savings product “Sah” provides attractive returns, and announced that it will be offered through the digital channels of a number of financial institutions, namely: NCB Capital, Al Jazeera Capital Markets Company, Alinma Investment Company, Alawwal Investment Company, and Al Rajhi Capital Company

The subscription period for the first version of the Saha product is scheduled to begin at the beginning of February

“Legal Information”

The difference between (dismissal of the lawsuit) and (disregard of the lawsuit)

The difference between the:

The dismissal of the lawsuit: is a judgment that the plaintiff is not entitled to the subject matter of the lawsuit, as it is related to the subject matter of the lawsuit

As for the disregard of the lawsuit: it is a judgment that the lawsuit is not entitled to be considered due to a formal reason that prevents the continuation of the consideration of the case, such as the lack of specific jurisdiction of the court or the failure to write the case in full details. Once that cause has disappeared, the case may be considered

legal news until 01/02/2024

latest legal news in local newspapers:

Bin Arafa Group for Legal and Legal Consultants is keen to inform you of the most important news related to your business, labor and commercial activities and the legal updated information correlated with it. We provide you with the latest legal news published in the local newspaper this week which may affect your business. We illustrate Herein below the latest news:

 

Seasonal discounts have become electronic

The Ministry of Commerce has made it possible for enterprises to obtain licensing of making discount electronically on the Ministry’s website as of February 8, 2024.

 

 

New regulation on internal Hajj and Umrah service Law

A NEW AMENDMENT of the jurisdiction concerning issues herein with the disputes of the objections to the cost of Hajj and Umrah services established by the Ministry and the consequent impairment of the performance of Hajj and Umrah, A NEW AMENDMENT has been established that the jurisdiction to be subject to the Sharia courts.

 

AN LEGAL INFORMATION

Civil Transactions law

The Civil Transactions Act states that in the case of avoidance or invalidity of the contract, the contractors shall revert to the situation in which they were prior to the contract. This means that the contract shall be considered only in special provisions such as the dispute settlement clause and the confidentiality clause, and it is also stipulated that if the contract was partially null and void, the contract’s effect shall not  extend to the remainder of its provisions except that invalid clauses was the reason to one of the parties to enter into the contract in  this situation, such party shall have the right to submit to the court request to consider the whole contract void.