RIYADH: Small and medium enterprises (SMEs) will be exempted from commerce fees register for three years in Saudi Arabia as the kingdom plans to boost the number of startups in the economy.
Startup costs for commerce fees register decreased by 96 percent for companies and from 33 percent to 75 percent for enterprises for the first five years, according to media reports.
The reports, citing the ministry of commerce, said the exemption will be granted to those wishing to issue a new trade register from the financial equivalent for three years and reduction for subsequent years.
Fees will start in the fourth and fifth year, the reports added, but at a reduced rate of SR500 ($133) for entrepreneurs and SR200 for entrepreneurs with a capital of less than SR375,000 and whose employees do not exceed five.
This initiative is likely to reduce the startup cost of business for both entrepreneurs and SMEs, and the exemption will save SMEs money.