Government Fee Recovery Initiative

Government Fee Recovery Initiative

The Kingdom of Saudi Arabia is keen to support entrepreneurs by providing them with an appropriate incentive environment that ensures their continuity in the labor market and contributes to increasing local production in accordance with Vision 2030.

The Refund Initiative is considered one of the important government initiatives concerned with supporting emerging enterprises through the government fee recovery service.

This service is provided to establishments that comply with the requirements set by the Authority, and the support includes specific government fees and specific economic activities.

Government Fee Recovery Initiative

What is the government fee refund service?

It is an initiative presented by the General Authority for Small and Medium Enterprises to stimulate the growth of small and medium enterprises by recovering government fees paid according to specific conditions and controls.

The Recovery Initiative aims to:

• Reducing operational burdens on emerging enterprises.
• Assisting the facility in starting its business and ensuring its continuity.
• Increasing the contribution of small and medium enterprises to the local economy and entering global markets.

How do I benefit from facility support?

A facility that started its activity from 2024 to 2026 can benefit from the facility recovery initiative. Disbursement of dues to eligible establishments will begin between 2027 and 2028.

The government fee recovery initiative goes through three stages:

• Registration period: This is the period during which applications for registration in the initiative are received and continues until 12-31-2026.
• Maturity period: This is the period of reviewing the entity’s data and determining its eligibility for disbursement.
• Refund period: This is the period for disbursing financial amounts to the eligible facility.

What economic activities fall within the recovery initiative?

Activities that fall within the facility recovery initiative are classified into three groups:

• Group (A): Activities include manufacturing chemical materials and products, manufacturing machinery and equipment, manufacturing furniture, manufacturing paper products, manufacturing pharmaceuticals, and others.
• Group (B): Includes sports and entertainment activities, architecture and engineering, marketing, communications, programming and broadcasting, agriculture, animal production, fishing, and others.
• Group (C): Includes cultural activities, libraries and museums, wholesale and retail trade, security and investigation activities, real estate activities, electricity, gas and steam supply, private education and building construction, etc.

Government Fee Recovery Initiative

What conditions must the facility meet to benefit?

Conditions that must be met by the facility to benefit

• Having a valid and up-to-date commercial register.
• Having a valid and up-to-date facility size certificate.
• The license to practice the activity must be valid.
• The facility must be fully owned by Saudi citizens, with the exception of some activities identified by the initiative.
• It must not have been 3 years since the establishment began practicing commercial activity.
• The establishment’s start date for carrying out its commercial activity shall not be before 1-1-2024.
• The facility achieves the localization rates approved by the Ministry of Human Resources and Social Development.
• Ownership of shares and stocks of micro, small and medium enterprises shall not be less than 60% of the company’s total ownership.
• Institutions must obtain a license to carry out their activities if required.
• Applications for registration in the initiative are submitted electronically through the website of the General Authority for Small and Medium Enterprises.
• Applications for registration in the Government Fee Refund Initiative will not be accepted after 12-31-2026.

What fees are included in the facility recovery initiative?

• The company’s articles of association were published only once.
• Issuing and renewing the facility’s commercial register.
• Transforming an organization into a company.
• Subscription to the facility’s Chamber of Commerce and its renewal.
• Licenses issued by the municipality that enable the establishment to carry out its activities.
• Saudi Post subscription for the facility.
• Registering one trademark for the facility.
• Register one patent.
• Issuing and renewing licenses for economic activities.
• 80% of the financial compensation fees for a foreign worker without his companions annually.

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What are the penalties for violating the provisions of the Recovery Initiative Regulations?

An entity that provides misleading information or documents, conceals material information that must be disclosed, or uses a trick to obtain support shall be punished with the following penalties:

• Depriving the violating facility of benefiting from a recovery initiative.
• Requesting the facility to return support amounts spent unlawfully.
• Suspend the registration application and refer the application to the competent authorities for consideration.

How to recover government payments?

An entity can verify its eligibility for government support under the Government Fee Recovery Initiative by following these steps:

• Log in through the facility’s account on the Authority’s website or through the unified national access.
• Select the required facility through the “My Facilities” list.
• Submit a registration application and fill in the required data.
• Agree to the terms and conditions and then submit the application.
• The application is processed and the facility’s data is verified and meets the required conditions by the Authority’s specialists.
• The facility’s application is registered and the application is completed.
• Government support amounts are disbursed.

Government Fee Recovery Initiative

It is important to seek the assistance of a lawyer specializing in commercial cases to ensure that the necessary licenses are obtained from the competent authorities to practice commercial work and adhere to the controls and conditions specified for each activity.

A commercial lawyer from Abdul Majeed Al Rashid Law Firm and Legal Consultations provides a variety of legal services, including drafting and reviewing commercial contracts and agreements, writing legal memoranda and defenses, providing specialized legal advice to companies and merchants, representing clients before judicial committees and bodies, attending court sessions on behalf of clients, and other services.

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