Massar

  • +966 11 2291125
  • info@massaraa.com

Business License in Saudi Arabia

A Comprehensive Guide to Business Licenses in Saudi Arabia

Embark on your journey to business setup in Saudi Arabia with Massar Business Solutions. Acquire your Saudi business licenses from the Ministry of Investment of Saudi Arabia (MISA – previously SAGIA) with ease and confidence. Our streamlined process simplifies licensing procedures, ensuring regulatory compliance and operational efficiency. Stay ahead of the curve with our expert insights, guiding your business towards success in the dynamic Saudi market.

Navigating government departments can be complex, but with Massar Business Solutions, it doesn’t have to be. Our comprehensive licensing services cover all aspects of acquiring, renewing, or canceling business licenses in KSA. We alleviate the burden of fines and costs, ensuring uninterrupted business activities in Saudi Arabia. Whether you’re a local enterprise or a foreign investor, our licensing specialists provide tailored solutions to expedite the licensing process, saving you time, resources, and compliance risks.

Our licensing solutions cater to businesses of all sizes and industries, addressing the diverse needs of our clients. Whether you require a commercial, industrial, professional, or construction license, our consultants possess the expertise to navigate the complex licensing landscape in Saudi Arabia. We ensure swift acquisition of licenses and permits, enabling legal operations and enhancing overall business performance in the Saudi Arabian market. Trust Massar Business Solutions to be your partner in achieving licensing success in Saudi Arabia.

Types of Business Licenses in Saudi Arabia

There is a large variety of business licenses available in Saudi Arabia. These include Commercial, Professional, and Industrial licenses that target different business sectors. Discover the appropriate license for your business activity to achieve success in Saudi Arabia’s flourishing economy.

Service Licence

Foreign companies can now offer a wide range of services in Saudi Arabia, such as construction, technology, education, healthcare, tourism, and more. Foreign investors are permitted to fully engage in the Saudi market, enabling them to expand and broaden their business operations.

Service Licence Requirements in Saudi Arabia

  • The business should have been established outside of KSA for more than 1 year.
  • A minimum capital of SAR 25,000 is required.
  • A copy of the commercial registration of the shareholding partner should be certified by the Saudi Embassy.
  • The foreign company's financial statements of the previous year should be certified by the Saudi Embassy.

Entrepreneurial license

Created specifically for startups, the Entrepreneurial Licence provides a variety of advantages such as simplified regulations, lower fees, and access to government support programmes. This Saudi business licence creates a favourable environment for entrepreneurs and innovators, empowering them to drive growth and development.

Requirements for Obtaining an Entrepreneurial Licence in Saudi Arabia

  • The entrepreneur should present either a patented idea, have VC backing, or a support letter from a government entity such as MISA, PIF, CODE, KAUST, TDF, etc.
  • An endorsement letter from a startup incubator would be beneficial.

Industrial license

An industrial licence is granted to foreign investors looking to establish their manufacturing plant in Saudi Arabia. Establishing industrial ventures in the kingdom now allows for 100% foreign ownership, opening up new possibilities. This business licence in Saudi Arabia facilitates strategic investments and promotes dynamic growth within the industrial sector of the Saudi economy.

What you need to obtain an Industrial Licence in Saudi Arabia

  • The business must have been established outside of KSA for more than 1 year.
  • A minimum investment of SAR 25,000 is required.
  • A copy of the commercial registration of the shareholding partner must be certified by the Saudi Embassy.
  • The foreign company's financial statements of the previous year must be certified by the Saudi Embassy.

Agricultural license

Having an agricultural licence enables foreign companies to participate in business activities pertaining to farming and livestock production in Saudi Arabia. International businesses have the opportunity to fully own their operations, which contributes to the growth and progress of the food production sector in the kingdom. Attaining food security and reaching an 85% localization target in processed food products are crucial objectives within the framework of Saudi Vision 2030. These goals present numerous growth opportunities.

What are the requirements for obtaining an agricultural licence in Saudi Arabia?

  • The business should have been established outside of KSA for more than 1 year.
  • A minimum investment of SAR 25,000 is required.
  • A copy of the commercial registration of the shareholding partner should be certified by the Saudi Embassy.
  • The financial statements of the previous year have been certified by the Saudi Embassy, indicating their reliability for a foreign company.

Real Estate License

This business licence in Saudi Arabia is specifically for foreign real estate development companies interested in undertaking projects in Saudi Arabia that have a total value of more than 30 million Saudi riyals in terms of land and construction costs. Typically, it is advisable to choose a real estate investment that is situated beyond the urban limits of Mecca and Medina. The typical processing time for licences is 1-2 days.

What are the requirements for obtaining a real estate licence in Saudi Arabia?

  • Certified copy of the commercial registration of the shareholding partner, authenticated by the Saudi Embassy.
  • Financial statements of the previous year certified by the Saudi Embassy for a foreign company.

Trading license (Commercial license)

Saudi Arabia provides a Trading or Commercial License to foreign investors under two categories: to pursue business activities in wholesale or retail either in partnership with a Saudi shareholder or independently with 100% foreign ownership. This Saudi business license permits foreign companies to trade in goods in both wholesale and retail markets in Saudi Arabia.

Requirements for Foreign Investment in Saudi Arabia For 100% foreign ownership

  • The foreign company must have branches in at least 3 different countries, excluding Saudi Arabia.
  • An initial investment of at least SAR 30 million in the first year
  • A total investment of SAR 170 million over the next 5 years in the Saudi company

Trading license (Commercial license)

Saudi Arabia provides a Trading or Commercial License to foreign investors under two categories: to pursue business activities in wholesale or retail either in partnership with a Saudi shareholder or independently with 100% foreign ownership. This Saudi business license permits foreign companies to trade in goods in both wholesale and retail markets in Saudi Arabia.

Requirements for Foreign Investment in Saudi Arabia For 100% foreign ownership

  • The foreign company must have branches in at least 3 different countries, excluding Saudi Arabia.
  • An initial investment of at least SAR 30 million in the first year
  • A total investment of SAR 170 million over the next 5 years in the Saudi company

25% Saudi partnership

  • A minimum capital investment of SAR 26,666,666 is required within the first year.
  • Foreign investors must hold shares valued at no less than SAR 20 million.

For 100% GCC-National Owned Companies

  • The minimum capital required is SAR 50,000.
  • All other rules are identical to those for Saudi nationals.

Mining license

Foreign companies have the opportunity to invest in and engage in mining activities within Saudi Arabia through the Mining Licence. With this business licence in Saudi Arabia, investors have the opportunity to fully own and operate mining enterprises in the country, opening up new possibilities for international firms. This permit provides an opportunity for foreign entities to delve into Saudi’s thriving mining industry, which holds immense potential valued at $1.3 trillion.

Requirements for Mining License in Saudi Arabia

  • The business should have been established outside of KSA for more than 1 year.
  • A minimum investment of SAR 25,000 is required.
  • A copy of the commercial registration of the shareholding partner should be certified by the Saudi Embassy.
  • The foreign company's financial statements of the previous year should be certified by the Saudi Embassy.

Professional license

Establish businesses delivering professional services such as law, taxation, consultancy, engineering, and architecture in Saudi Arabia with the Professional Licence. Foreign professionals have the opportunity to run and operate professional companies with complete ownership rights. They have the chance to delve into the expanding possibilities offered by Saudi’s rapidly advancing economy.

Requirements for Professional License in Saudi Arabia For 100% foreign ownership

To enable 100% foreign ownership

  • The foreign company must have branches in at least four different countries.
  • The share capital of one branch should amount to 10 million SAR.
  • The foreign company should possess over seven years of experience in this field