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Types of business licenses in Saudi Arabia

The Saudi Arabian government provides foreign companies and individuals with eight varieties of business licenses to pursue opportunities within the country.

• Service license – Foreign companies are permitted to engage in diverse service-oriented activities within Saudi Arabia, spanning sectors such as restaurants, marketing agencies, IT services, and web or app development. Importantly, these companies have the flexibility to possess 100% ownership of service-based enterprises in the Kingdom.

• Entrepreneur license – The entrepreneurial license caters specifically to startups, providing them with advantages such as simplified regulatory processes, lowered fees, and eligibility for various government support initiatives.

• Industrial license – A foreign entity is permitted to establish manufacturing facilities in Saudi Arabia through the acquisition of an industrial license. The regulations allow foreign companies to possess full ownership, enabling them to own 100% of an industrial company within the country.

• Agricultural license – Agricultural licenses in Saudi Arabia enable foreign companies to participate in various agricultural pursuits, including cultivation and livestock farming. These licenses grant foreign entities the ability to fully own agricultural companies within the country, allowing for 100% ownership.

• Real estate license – This service caters to international real estate development firms when the combined expenditure for land and construction exceeds 30 million Saudi riyals. The project must be located outside the urban areas of Mecca and Medina. For specific information regarding licensing requirements, it is advisable to reach out directly to MISA.

• Trading license – A trading license in Saudi Arabia grants foreign companies the authorization to engage in the import and export of goods. Furthermore, foreign entities have the privilege of full ownership, with the ability to possess 100% of a trading company in the country.

• Mining license – Foreign corporations are granted the authority to partake in mining operations within Saudi Arabia through the issuance of a mining license. Such licenses empower foreign entities to possess full ownership, up to 100%, of a mining company in the country.

• Professional license – Foreign professionals are permitted to practice their profession, including law, taxation, consultancy, engineering, architecture, and other advisory services, in Saudi Arabia through the acquisition of a professional license. Additionally, they are authorized to fully own professional companies within the country, with ownership reaching 100%.

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