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Rules of municipal licensing tightened
Published in The Saudi Gazette on 13 - 03 - 2017

A new bylaw issued by the Ministry of Municipal and Rural Affairs makes it mandatory on all gas stations and car service centers to renew their operating permits annually.
The period of validity of municipal license for operating any institution that poses a public health hazard risk, including car service centers and gas stations, will be limited to one year, according to the new executive bylaw for municipal licensing, the Saudi Press Agency reported on Saturday.
The period of validity of the license for opening any other shops will be one to three years while for the license for construction firms will be three years, SPA said.
Minister of Municipal and Rural Affairs Abdullatief Al-Asheikh approved the executive bylaw and the requirements for municipal licenses for different activities. The licensing process is linked to the ministry›s web portal called «Baladi.»
The municipality can revoke the license of any firm in case it does not start the concerned commercial activity within 12 months of obtaining the permit or for not renewing it as per regulations.
The license will be revoked if the holder repeatedly violates the regulations more than three times, fails to rectify the violations or delays payment of fees and fines even after warning notices were served.
A license can also be cancelled following a request from the concerned government agency that supervises the activity or the holder of license after her clears all arrears in fees and fines.
According to the bylaw, a Saudi citizen above the age of 18 or any foreign investor can apply for the municipality license to open a shop if they have obtained a commercial license to start the business.
The applicant should own the property where the shop is located or should have concluded a rental contract with the property owner for a minimum period of one year.
Other conditions for the municipality license include the approval from the concerned government agency, Civil Defense and payment of fees and fines if any. The application must be submitted online through the Baladi portal or at the coordination office for the purpose.
There is also a provision in the bylaw to form committees to examine complaints or grievances with regard to the application of any provisions of the bylaw and this will be in line with an order issued by the minister.


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