HomeCommercial License

A commercial license in Saudi Arabia is crucial for businesses, enabling legal operations and access to the vibrant market. It opens opportunities for international investors to participate in the Kingdom’s economic diversification initiatives, fostering growth and collaboration in energy, technology, and infrastructure sectors.

Commercial License

Securing a commercial license is a prerequisite for enterprises establishing a presence in Saudi Arabia. This licensure confers the legal authorization for business operations within the nation and bestows various advantages. These include eligibility for government services, safeguarding intellectual property rights, and the opportunity to participate in tenders and contracts.

Booming Industrial Segments in the Kingdom’s Trade Landscape
  • Situated at the convergence of Europe, Africa, and Asia, Saudi Arabia is a pivotal nexus with its extensive network of 13 ports along the Arabian Gulf and the Red Sea. 
  • These ports play a vital role in facilitating 13% of global trade. 
  • Saudi Arabia’s ports are instrumental in enabling access to 70% of its imports and handling 95% of exports through a comprehensive infrastructure of 291 docks. 
  • The nation has forged free trade agreements with key entities such as the Greater Arab Free Trade Area (GAFTA), the European Free Trade Association (EFTA), and Singapore, further enhancing its global trade connections.
The importance of the trade sector in Saudi Arabia 
  • Saudi Arabia, the economic powerhouse of the Middle East and North Africa, owes its prosperity to a thriving trade sector. 
  • The government actively supports this industry, making the country attractive for retail, wholesale, and e-commerce businesses. 
  • With a youthful population and strategic location at the crossroads of significant continents, Saudi Arabia offers a prime consumer goods market and an ideal hub for regional trade.
  • Additionally, the Kingdom has secured free trade agreements with entities like GAFTA, EFTA, and Singapore, solidifying its position as a global trade player.
Commercial License with Saudi Shareholder
Rules and Restrictions
  • A commercial license mandates Saudi shareholders with a minimum of 25% ownership in the company.
  • Premium residence holders are exempt from the 25% Saudi shareholder requirement.
  • Partners with prior Ministry of Investment licenses must disclose this information in the electronic application.
  • The application must include data on Saudi national identity, premium residence, residence, or commercial registration for participating Saudi companies.
100% Foreign Commercial License
Rules and Restrictions
  • Foreign companies with a regional or international presence in at least three markets can apply.
  • Partners with previous Ministry of Investment licenses must be mentioned in the application.
  • Foreign companies with 100% ownership need a minimum capital set by the government for wholesale and retail trade.
First five years obligations
  • a. Localization: Comply with the Ministry of Labour’s localization rates in senior management.
  • b. Training: Conduct annual training for 30% of Saudi employees.
Investment options
  • Option 1: Invest significantly over five years, including a substantial amount as cash capital.
  • Option 2: Invest a substantial amount over five years, including a portion as cash capital, and fulfill criteria related to manufacturing, research and development, or logistics.
Acquire Your Commercial license in Saudi Arabia seamlessly with Helpline Group

With an impressive history of 25 years, Helpline Group is a reliable business consultancy in Saudi Arabia, specializing in proficient guidance and support for obtaining commercial licenses. Our broad international presence includes 10 branches worldwide, supported by a dedicated team of over 300 professionals, guaranteeing adept consultancy and steadfast support for all your business requirements.