The provisions of these terms apply to practitioners of the car leasing activity and the activity of leasing intermediaries through applications or websites.
1. The license to conduct the activity is limited to establishments only, and it is not permissible to engage in the activity without obtaining the license, or after its expiration or cancellation, or during the period of its suspension.
2. The practice of electronic car leasing is limited to leasing vehicles owned by the establishment only.
3. The practice of electronic leasing brokerage is limited to leasing vehicles owned by Saudi individuals only.
1. To obtain a license for conducting the activity, the establishment must submit a claim through the approved channels of the authority and fulfill the following requirements:
1- A Commercial Register limited to the activity that is valid, and it is permissible to combine more than one transport activity or a supporting activity in the same register.
2- A certificate of trademark registration for the technical system used in providing the service.
3- A valid social insurance certificate.
4- A valid Zakat and Income certificate (if more than one year has passed since the issuance of the Commercial Register).
5- Availability of the technical system for the establishment and its connection and integration with the authority's platform.
6- Appointment of a responsible or authorized person to communicate with the authority, and specifying the means of communication with them.
7- A financial guarantee in the name of the authority in the amount of (250,000) two hundred and fifty thousand Riyals, and the president may exempt this for entrepreneurial activities or establishments operating in business incubators only once.
8- Connection to any electronic systems specified by the authority.
9- Provision of the minimum required to conduct a car leasing activity, which should not be less than (100) one hundred cars, provided that the cars are owned by the establishment, or through leasing contracts, provided that the establishment is the actual user of the cars.
10- Without prejudice to Article (9), the car must be new and not previously registered in the Kingdom when it is put into service in the activity.
2. The car leasing activity is exempt from the provisions of paragraph (g), and the leasing intermediary activity is exempt from the provisions of paragraph (t) and paragraph (y).
3. The establishment must fulfill all conditions and requirements for issuing the license within a period of (90) days - at most - from the date of submitting the claim, otherwise, the claim will be considered canceled.
4. Subject to the provisions of paragraph (1) of this article, the license to practice the activity shall be issued after the payment of the financial fee and any financial penalties (if any) in the name of the establishment and for a period of one year.
The licensing conditions stated in paragraphs (e, z, h, t) of (1) of Article (4) are essential for its validity. In the event of a breach of any of these conditions, the license shall be suspended, and the activity shall not be carried out until the condition is fulfilled, without prejudice to the authority's right to impose the prescribed financial fine for that condition.
Subject to the provisions of paragraph (1) of Article (Four), the License shall be renewed upon request from the licensee for a similar duration and after the payment of any financial penalties (if applicable), in accordance with the following regulations:
1. Submission of the renewal application and fulfillment of all its conditions within the period preceding the expiration date of the License by (90) ninety days; otherwise, the License will be canceled after the payment of any financial penalties, if applicable.
2. The operational lifespan of the registered vehicles shall remain in effect.
3. Submission of a valid Saudization certificate and payment of the financial fee (if applicable).
The activity of the leasing intermediary is exempt from the provisions of paragraph (2) of this Article.
Subject to the provisions of paragraph (1) of Article (4), a Waiver of the License with the same number and expiration date may be granted, in accordance with the following requirements:
1. Prior approval from the Authority on the Waiver request.
2. The transferee must meet all the conditions required for licensing to practice the activity.
3. The License must be valid at the time of submitting the Claim and until the transfer of the License to the name of the transferee is completed.
4. The transferor remains responsible for the License before the Authority until the transfer of the License to the name of the transferee is completed.
5. Payment of any financial penalties recorded against the transferor and the transferee (if any).
6. Payment of the financial fee (if any).
7. The transferee must not engage in the activity until the License is issued in their name.
8. The existing facilities must comply with the provisions of these conditions, as well as the relevant instructions.
9. Completion of the Waiver procedures within (60) sixty days from the date of the Authority's approval of the Waiver; otherwise, the Claim will be considered null and void.
1. An application for the cancellation of the License may be submitted after the payment of financial penalties (if any), and in accordance with the following controls:
1- Validity of the Zakat and Income Certificate.
2- Payment of the financial fee (if any).
2. The License shall be canceled after the payment of financial penalties (if any) in the following cases:
1- Liquidation of the company, whether by agreement of the partners, expiration of its term, or by judicial ruling.
2- Death of the owner of the sole proprietorship.
3- Expiration of the License without renewal.
4- Waiver of the License without obtaining prior approval from the authority.
3. Notwithstanding the provisions of paragraph (2/b) of this article, the heirs of the deceased owner of the sole proprietorship may, within (90) ninety days from the date of death, request to rectify the legal status of the establishment to continue practicing the activity, provided that the legal agent of the heirs undertakes to comply with the provisions of this Regulation during the rectification period.