Law of E Commerce Assignment Report

Running head: LAW OF E-COMMERCE
QUESTION-ANSWERS ON LAW OF E-COMMERCE
Name of the Student
Name of the University
Authors Note

LAW OF E-COMMERCE1
Answer
1.
The term e-commerce itself means ‘electronic commerce’. In recent days, the ratio
jumping off in E-Commerce has risen 45% from the last decades. E-Commerce has become a
new trend in all over the world. E-Commerce provides a dynamic yet comfortable market, where
it promises a fascinating experience and a friendly service.
It is not that very easy to start an online business within the Kingdom as an expatriate.
The first thing to think about when an individual starts an online business in Saudi Arabia is that
the law and culture of Saudi Arabia must be respected. Moreover, the products of the business in
the Kingdom must be lawful and appropriate. Starting an online business involves several
challenges. The first challenge is that physical presence is missing in this business (Makki and
Chang 2015). As per the given scenario, the business which is operated by Ahmed is already
successful. Thus, if he wants to start an online business the following steps need to be followed
by him, which include:
 He needs to choose a unique name for the online business;
 Then he needs to register a domain name for the business which is regarded as the
internet address of the online business;
 He must have registered the business through commercial registration at KSA
 After that he needs to file the business formation papers with the state agency which
deals with business filings and must pay the filing fee;
 He also needs to open a business bank account and if transactions will be processed
through his website, an account with another payment online service needs to be open;

LAW OF E-COMMERCE2
 Then for selling products online, he must pay sales tax and for this purpose must
understand the sales tax and licensing requirements of Saudi Arabia.
 Finally, to run the business he needs to buy web hosting form those companies which
provide domain registration.
If the store name of Ahmed has already been taken by someone, then he must by
following the provisions of the Gulf Cooperation Council Trademark Law, 2016 make an
objection by writing an application to the appropriate authority, namely the Saudi Intellectual
Property Authority which deals with the trademark disputes in Saudi Arabia (Alfadhel 2015).
2.
A new Electronic Commerce Law (E-Commerce Law) has been introducing by the Saudi
Ministry of Commerce and Investment (‘MOCI’) which came into effect from 9th October 2019.
It emerges a new stage in the Kingdom’s digital transition path and also considered to be a part
of Saudi Vision 2030 to diversify and boost the economic performance of the Kingdom of Saudi
Arabia (‘KSA’). The law of E-Commerce extends to anyone who sells products and services
through an online store or an online platform or website open to KSA customers. The E-
Commerce Act has established the sector of E-Commerce by allowing service providers to offer
their goods and services directly to customers, whether or not they have commercial registration
at KSA. In this way, the E-Commerce Law aims at stimulating and improving e-commerce
operations and controlling relationships between all service providers and customers. According
to the E-Commerce Act, service providers must, through an electronic agreement between the
manufacturer and the customer, provide customers online terms and conditions of use.
Information on the exchange, products and services and the overall amount, including all costs,
taxes and other related payments, shall also be made available to the service provider. Besides,