Starting a new business or expanding your work in Saudi Arabia? then you want to know how to get a Saudi Arabia license easily and without going in circles, it isn’t as complicated as many people think, but it needs clear steps and tips from people who’ve done it before.
What Is a Saudi Arabia license and Why You Need One?
If you’re planning to start a project in Saudi Arabia or even expand your work to the Saudi market, the most important thing to understand is that you must have a Saudi Arabia license, which is an official government-issued business permit.
This license gives you the legal right to practice your commercial activity inside the kingdom, whether it’s trade, services, manufacturing, or any other type of business.
Definition and Purpose of the License
The commercial license in Saudi Arabia is an official license issued by government authorities in the kingdom, which contains all the details related to your commercial activity: company name, type of activity, place of work, and license duration.
Having this license is very important so you can work legally, open bank accounts, sign contracts, and obtain other licenses if needed later.
Simply put, this license is like the “identity card” of your company in Saudi Arabia, and without it, you can’t work officially or gain the trust of clients and partners.
Types of Business Licenses in Saudi Arabia
Business licenses in Saudi Arabia vary according to the type of company and nature of activity, and the most common types are:
- Limited Liability Company (LLC): This is a company with several partners, and the responsibility of each partner is limited to their capital only. This type is very common because it gives legal protection to the partners and allows for greater expansion.
- Sole Proprietorship: This is when the business owner is the only person responsible for the company. It is the easiest and fastest type of company to establish, but it means you are legally responsible for everything in the business.
- Foreign Entities: If you are a company or investor from outside Saudi Arabia and want to enter the Saudi market, you will need to register as a foreign company and obtain a special license for foreign entities. This allows you to open a branch or partnership with Saudi parties.
In short, choosing the type of license that suits you depends on the size of your company, the nature of your activity, whether you work alone or with partners, or if you are a foreign investor.
Who Can Apply for a Saudi Arabia license from the UAE?
If you're in the UAE and thinking about starting a business in Saudi Arabia, you're probably asking: "Can I even apply for a Saudi Arabia license?"
The truth is, there are certain categories of people who are allowed to apply for this license, and each category has a few simple conditions. Let’s understand the topic together.
UAE Citizens
If you're an Emirati and want to start a business in Saudi Arabia, then things are very simple. The Kingdom treats Gulf citizens, including Emiratis, almost like Saudi citizens when it comes to business.
That means you can establish your company and get a Saudi Arabia license without needing a Saudi partner, which really simplifies the procedures.
Also, you can practice many business activities freely and open branches of your Emirati company in Saudi Arabia without major restrictions.
Foreign Investors Residing in the UAE
If you're not Emirati but living in the UAE (meaning you have a residency permit), you can still apply for a Saudi Arabia license, but the conditions here are a bit different.
You’ll need to:
- You should have a registered company or commercial license in the UAE.
- Prove that you're serious about expanding into Saudi Arabia.
- Contact the “Saudi Ministry of Investment” and submit a clear business plan.
Usually, they’ll ask for some documents like your UAE trade license, passport, and details about your business activity.
If everything is okay, you’ll get approval and can start setting up your business there easily.
GCC Nationals
Besides Emiratis, other Gulf citizens (like from Kuwait, Bahrain, Qatar, Oman) can also apply for a Saudi Arabia license without complications.
Saudi Arabia gives them almost the same privileges as its own citizens, as part of Gulf agreements aimed at encouraging investment and economic integration.
So, if you're from any GCC country, you can start your business in Saudi Arabia without a Saudi partner and get the license very easily, whether your business is industrial, commercial, or service-based.
Step-by-Step Process to Apply for a saudi arabia license
If you're planning to start your business in Saudi Arabia, there are a few steps you need to follow in order. The good news is, things are much easier now than before — and almost everything is online. Let’s go through the steps together:
Choose Your Business Activity and Legal Form
The first thing you need to do is decide exactly what you want to work in. Is your company going to do commercial, industrial, or service-related work?
Then you choose the legal structure of your business:
Is it a sole proprietorship? A partnership? Or maybe a branch of a foreign company?
This step is important because each business type and activity has its own specific requirements.
Reserve Your Company Name
Once you've chosen your activity, you need to reserve a name for your company.
The name has to be unique, not used before, and shouldn’t include anything illegal (like religious or political references).
You can reserve the name online through the Ministry of Investment’s website, and the reservation is temporary while you complete the rest of the steps.
Submit Your Application via MISA or SAGIA
Previously, the responsible authority was called SAGIA, but now it’s the Ministry of Investment (MISA).
On their official website, you create an account and fill in all your company details, then submit your application to get the investment license.
Make sure to include full details like your chosen activity, capital, partners (if any), and business plan if required.
Upload Required Documents
After submitting the application, you’ll need to upload some key documents, we will discuss in detail and you scan and upload all these online — no need to go anywhere in person.
Required Documents to Apply for a saudi arabia license
If you want to get a business license in Saudi Arabia, whether you’re living in the UAE or you have a foreign company and want to expand into Saudi, there are some documents you need to prepare, let’s go through them step by step.
For UAE-Based Applicants
If you're a person living in the UAE (whether you’re a citizen or a foreign investor with residency), you’ll need:
- Copy of your passport: It must be valid and with no issues.
- UAE residency visa: Also needs to be valid.
- UAE trade license (if you own a business): To prove you already have an existing operation in the UAE.
- Bank statement or funding proof: To show you can finance the business you're planning to open in Saudi.
- Simple business plan: To explain the idea, the activity, and your goals.
For Foreign Companies Expanding to KSA
If you have an existing company outside of Saudi (like in the UAE or another country) and want to open a branch there, the documents needed include:
- Commercial license of the parent company: Needs to be translated and notarized.
- Articles of association: Also must be translated and notarized.
- Board resolution: Approving the opening of a branch in Saudi Arabia, and authorizing a specific person to follow up the process.
- Head office information: The address and contact details.
- Financial statements: Like balance sheets or profit reports, if requested.
Translation and Notarization Tips
To make sure your documents are accepted without delays, follow these points:
- Use certified translation: Not just any translation — it has to be done by a certified legal translator or agency.
- Chamber of Commerce attestation: Some documents like licenses or contracts may need to be certified by the Chamber of Commerce in your country.
- Saudi Embassy attestation: You may also be asked to have your papers attested by the Saudi embassy in your country or the Ministry of Foreign Affairs.
- Submit scanned copies: Everything is uploaded online now via the Ministry of Investment platform, so make sure your scans are clear and high-quality.
Read more about: How to Obtain a Transportation and Storage License in Saudi Arabia
Saudi Arabia license Costs and Government Fees
When you want to start any business in Saudi Arabia, the first thing you need to keep in mind is the cost.
It’s not just about submitting papers — there are some basic fees and also extra costs that might come up along the way, So let’s understand everything together.
Estimated Fee Range
What are the government fees you’ll need to pay to get a saudi arabia license?
- First, the issuance fee of the license from the Ministry of Investment (MISA) usually ranges between 2,000 to 5,000 SAR per year, depending on the type of business you’re opening.
- If your activity is industrial or a large commercial one, the fees can go up to 10,000 SAR or more.
- There are also yearly renewal fees, so you’re not just paying once. You need to consider this in your budget for the whole time your business is operating.
The cost varies from one business activity to another, so it’s important to ask or check the “Invest Saudi” platform depending on the activity you’re planning to start.
Extra Costs (Legal, Translation, etc.)
Besides government fees, there are some other costs you should plan for:
- Legal Translation: All your documents that aren’t in Arabic or official English need certified legal translation. This might cost you between 200 to 1,000 AED per file depending on the size.
- Attestation and Certification: Some documents need to be certified by the Chamber of Commerce, Ministry of Foreign Affairs, and the Saudi Embassy. These can cost around 1,000 to 2,000 AED in total depending on the number of documents.
- Legal Consultancy or Service Offices: If you hire a lawyer or office to help you with the procedures, it might cost you between 3,000 to 7,000 AED or more, depending on the service.
- Bank account setup, trade name reservation, etc.: These depend on the bank or authority you’re dealing with, but you should budget for them too.
Common Mistakes to Avoid in the Application Process
Honestly, a lot of people make small mistakes when applying for a Saudi Arabia license, and these mistakes can delay their application or even cause it to be rejected, Let me tell you the most common ones so you can avoid them:
Choosing an unclear business activity
Many people pick a general or vague activity, and that makes the government ask for more clarifications or reject the application. You need to choose a specific, clear activity that fits the type of business you want to start.
Missing or badly translated documents
Some documents must be legally translated and certified. Some people forget things like commercial registration or required attestations, which slows down everything.
Choosing a company name similar to another
If the name you choose is too similar to an existing business, the system may reject it and you’ll have to start over. So, pick a unique and clear name.
Delaying payment of government fees
Some people think they can submit the application and pay later, but the truth is your request won’t move forward until you pay the full required fees.
Using expired or outdated documents
If you submit documents with expired data (like an old passport or expired residency), your application will be rejected right away.
Motaded: The perfect partner to assist investors in Saudi Arabia
Our team provides you with all the support you need to establish your company in Saudi Arabia easily and quickly.
From legal consultations, choosing the license, preparing documents, facilitating registration procedures, to following up on the application until you get the license.
Contact us now and start your investment with confidence.
Contact through:
- [email protected]
- +966 53 979 7197
FAQs About “Saudi Arabia license”
How do I apply for a Saudi Arabia license?
You choose your business activity, reserve the company name, submit the application on the official website, upload the required documents, pay the fees, then wait for the final approval.
Can I operate remotely with a Saudi Arabia license?
Yes, but you need to have a partner or legal representative in Saudi Arabia and an official address there.
Is it possible for a foreigner to start a business in Saudi Arabia?
Yes, foreigners can set up businesses in Saudi Arabia with full ownership rights and no limitations.
How many types of licenses are available in Saudi Arabia?
Saudi Arabia offers 8 different types of business licenses through the Ministry of Investment (MISA, formerly SAGIA). Each license has its own set of requirements, such as service, entrepreneur, trade, and industrial licenses