Starting a business in Saudi Arabia requires obtaining the appropriate licenses to ensure legal compliance and operational success. The Kingdom offers various types of business licenses, each tailored to different business activities and industries. Here, we provide a detailed guide on the types of business licenses available in Saudi Arabia, their requirements, and the application process.
Types Business licenses in Saudi Arabia
1. Industrial License
This license is issued by the Ministry of Industry and Mineral Resources. You need to have either a business that is registered outside of KSA and has been in operation for at least 1 year, a minimum investment of SAR 25,000, a copy of the commercial registration for the shareholding partner certified by the Saudi Embassy, and the previous year’s financial statements for the foreign company certified by the Saudi Embassy.
Other Saudi Arabia Business License Requirements
- Detailed project proposal
- Feasibility study
- Environmental impact assessment
- Proof of financial capability
Application Process
- Submit an online application via the Ministry’s portal.
- Provide all required documentation.
- Await inspection and approval.
2. Professional License
A professional license is designed for individuals and firms offering professional services, including consulting, legal, medical, and engineering services. The license is issued by the Ministry of Commerce. Requirements for 100% foreign ownership: branches in four countries, one with a share capital of 10 million SAR, and 7+ years of experience in the field.
Other Requirements
- Proof of qualifications and experience
- Office lease agreement
- Professional liability insurance
Application Process
- Submit an application with relevant qualifications and documents.
- Undergo a review by the respective professional body.
- Obtain the license upon approval.
3. Service License
This includes service licenses such as construction, technology, tourism, education, etc. It allows for complete foreign ownership, allowing investors to expand as well as diversify their business operations within the Kingdom.
- A business should have been formed outside Saudi Arabia at least for one year.
- An amount of SAR 25000 is the minimum for capital.
- A certified copy of the commercial registration document from one of the Shareholder partners
- The financial statements prepared by any foreign firm for its previous year
For instance, let us consider tourism license. It is a type of service license that is necessary to operate in a tourism sector such as travel agencies, tour operators, and hospitality services. It issued by the Saudi Commission for Tourism and National Heritage.
Requirements
- Business plan focused on tourism
- Proof of financial capability
- Office lease agreement
4. Trading License
A Trading License in Saudi Arabia gives foreign corporations the statutory ability to import and export products across the Kingdom borders. With such permission, firms will be able to 100% control their trading activities.
Requirements
- An established presence in the worldwide market.
- At least three branches elsewhere other than Saudi Arabia
- SAR 30m capital in the first year
- SAR 170m capital investment in next 5 years
For 25% Saudi Partnership
- SAR 26,666,666 capital and foreign investment not less than 20 million SAR
- No branches required
- Companies that choose this route do not have to invest SAR 170 million over a period of five years
100% GCC-National Owned Companies
- They may have complete ownership of a Saudi entity.
- The smallest amount of capital that is required for companies owned by GCC nationals is just SAR 50,000 which becomes available to several businesses.
Other Requirements
- Business plan
- Office lease agreement
- Shareholder details
Application Process
- Prepare company documents such as Financial documents, Branch documents and Proof of Capital
- Fee payment and submit the application to MISA
- Obtain the license and register the business with the local authority
5. Mining License
The mining industry in Saudi Arabia is a great chance for multinational corporations intending to mine minerals. An international corporation can use a mining license to explore, extract and refine minerals found in the Kingdom.
Requirements
- The company is established outside the Kingdom for more than one year.
- The organization is a well established entity and not a sole proprietorship.
- The minimum capital investment must be 25000 SAR
Application Process
- Collect all the necessary documents, i.e, proof of establishment outside Saudi, Financial and Capital documents
- Submit the application to Ministry of Industry and Mineral Resources or Saudi Arabian Mining Company
- Pay fees
- Obtain license after approval
Helpline Group provides legal, compliance, attestation, and business setup services. Due to dedicated service, customer satisfaction, and expertness within a continuous changing business climate, our growth happened at incredible rates.
