Commercial concealment (tasattur): the risk every owner must avoid

Commercial concealment — known as tasattur — is when a person who isn't legally allowed to run a business does so under the name or licence of someone else, usually a Saudi citizen.

What it looks like

• A non-Saudi effectively owning and running a business registered in a Saudi's name.
• Profits going to someone who isn't a registered owner.
• Bank accounts, contracts or decisions controlled by someone outside the registered ownership.

The penalties

The Anti-Concealment Law provides for heavy penalties, including large fines, possible imprisonment, closure of the business, and deportation for non-Saudi offenders. Those who knowingly lend their name are penalised too.

Legal alternatives

• Foreign investors can register with the Ministry of Investment and own a business directly in many activities.
• Partnerships can be structured properly through a company with documented ownership.

Protect yourself

• Make sure the registered owners are the real owners and decision-makers.
• Keep business money in the business account, with clear records of who receives profits.

If your current structure doesn't reflect real ownership, get advice on correcting it.