Can an Expat Run a Business Under a Saudi’s Name? Saudi Arabia Clarifies
National Anti-Concealment Program clarifies that an expat managing a business under a Saudi's name is illegal commercial concealment (Tasattur).
Saudi Arabia’s National Program for Combating Commercial Concealment has clarified a common question about expatriates running businesses under a Saudi citizen’s name.
The authority confirmed that any arrangement where a non-Saudi manages a business using a Saudi’s commercial registration constitutes illegal commercial concealment (Tasattur)—even if the Saudi citizen receives a fixed monthly fee.
What Constitutes Tasattur?
The clarification addressed a scenario in which a non-Saudi wants to open and manage a business using a Saudi friend’s commercial registration (CR).
According to the official program, this is “one of the clearest forms” of commercial concealment prohibited under Saudi law.
The authority explained that allowing a non-Saudi to conduct business for their own account using a commercial registration or licence belonging to a Saudi citizen constitutes commercial concealment.
The rule applies whether the Saudi citizen receives financial compensation or allows the arrangement without any payment.
Penalties for Commercial Concealment
Saudi Arabia imposes serious penalties for commercial concealment.
Depending on the violation and final court ruling, consequences can include:
- Fines of up to SAR 5 million.
- Imprisonment for up to five years.
- Confiscation of illicit funds.
- Deportation of a convicted non-Saudi after completion of the sentence and payment of applicable financial obligations.
Legal Alternatives for Expatriates
Saudi Arabia provides legal pathways for foreign investors to establish and operate businesses in the Kingdom.
Foreign investors who meet the applicable requirements can establish businesses through the official investment, commercial registration and licensing procedures. The requirements vary depending on the investor and the type of business activity.
Expatriates considering starting a business should therefore use the appropriate legal investment and licensing channels rather than operating through another person’s commercial registration.
Sources
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