If you're thinking of starting your own business in Saudi Arabia, the first step you need to focus on is getting a trade license. It's not as complicated as many people think, but you just need to do it the right way from the beginning.
What Is a Trade License in Saudi Arabia?
Look, a trade license simply means the paper or official permit you get from the government so you can legally open a business in Saudi Arabia.
Without it, you can’t operate officially whether it’s a small project or a big company.
Why businesses need it (legal, financial, trust)
So why is this license important?
- First, because it lets you work under the law, and you won’t face any fines or legal trouble.
- Second, it opens up many doors for you, like opening a bank account under your business name and dealing with official entities and suppliers.
- And third, it gives trust to people who deal with you—whether they’re customers or partners—because you’re running things in a clear and legal way.
2025 updates from MCI
This year (2025), the Ministry of Commerce announced important updates regarding issuing and renewing the trade license.
Now, there are easier and faster digital steps you can do from home, and they even launched new services through the "Meras" and "Tajer" platforms to help business owners start their projects with less effort and faster results.
Read More About: Key Features of how to start llc in saudi Regulations 2025
Types of Trade License in Saudi Arabia
There’s more than one type of license – each fits a different kind of business, as follows:
Commercial License
This license is for businesses involved in buying and selling goods. A commercial license is a must if you run a physical shop, trade on the internet, or handle import.
It’s perfect for shops like groceries, clothing stores, or electronics businesses.
Professional License
This type is for skilled individuals offering services based on qualifications—like doctors, lawyers, consultants, or designers.
If your work depends on your personal expertise, the professional license is what suits you best.
Industrial License
If your business involves manufacturing or production—like running a factory or workshop—you’ll need an industrial license. It requires approvals from specific authorities such as the Ministry of Industry.
E-commerce or Digital License
Selling through websites or social media? This license is for online businesses.
It supports entrepreneurs working through platforms like Instagram, Snapchat, or dedicated e-stores, backed by initiatives like “Ma’roof.”
Freelance License
Freelancers in fields like writing, photography, programming, or design can apply for this license.
It allows you to work legally as an individual, without needing a full business registration.
How to Apply for a Trade License in KSA
If you’re planning to start your project in Saudi Arabia, you must get the trade license.. and it’s not hard at all, just needs clear steps!
Requirements and Documents
To start, you need to prepare some simple papers:
- National ID or residence permit if you’re an expat.
- Address of the shop or place that will be the business location.
- Select your business name with care—it becomes the public face of your brand.
They might also ask for the commercial registration if you're working in a certain activity, or approval from other authorities if your business needs that.
Step-by-Step Application (via Ministry of Commerce website)
Applying is now very easy, all online through the Ministry of Commerce website, and the steps are:
- Go to the Saudi Ministry of Commerce website.
- Choose "Issue Commercial Registration".
- Log in with your Absher account.
- Fill in the business details: name, activity type, address.
- Review the fees and pay online.
- In a few minutes, the commercial registration and license will be sent to your email.
The whole process takes at most 10 minutes if your documents are ready and everything is correct!
How Motaded Can Help You Speed It Up
If you want to save your time and make sure everything is done right, we can really make it easier for you:
- They prepare all the needed papers.
- They help you choose the right business name.
- They ensure your activity matches the regulations.
- They follow up with the official authorities until your license is ready.
Contact them at:
- [email protected]
- +966 53 979 7197
Start the right way.. and make this company your partner in your first step to success!
Trade License Costs in Saudi Arabia
Do you want to start your project in Saudi Arabia? Let’s speak honestly about money! Getting a trade license isn’t free, but it’s not complicated either... and we’ll explain that step by step here.
Initial Registration Fees
When you start, the first thing you’ll pay is the fee to issue the trade license for the first time. Your payment varies with the sector, scale, and address of the business, yet on average:
- Commercial Registration fees: around 200 to 1,200 SAR.
- Trade License fees: start from about 100 SAR and may go higher depending on the activity.
- Trade name reservation (if you want a unique name): about 100 SAR.
So, you can expect the initial setup payment to be around 300 to 1,500 SAR, or more depending on your case.
Annual Renewal Fees
Every year, you’ll need to renew your trade and commercial registration. These are usually the same as what you paid at first, which means:
- Commercial Registration: around 200 to 1,200 SAR.
- Trade license: ranges depending on activity, but usually 100 to 500 SAR.
If you are in private sectors like restaurants or industrial activities, there might be extra fees related to health or civil defense.
Extra Costs You Should Keep in Mind
Beyond the core charges, a few extra expenses can crop up, such as:
- Chamber of Commerce Fees: paid once you register and renewed yearly, starting from 800 SAR depending on your business activity.
- VAT (Value Added Tax): you need to register with ZATCA if your yearly income exceeds a certain amount.
- Municipality fees or special permits: if your activity requires approval from other authorities (like SFDA or Civil Defense).
Why choose Motaded for your trade license in Saudi Arabia?
When any investor or entrepreneur decides to start their business in Saudi Arabia, they definitely need an expert party to save them time and effort — and here comes the role of them.
Full support from the first step until receiving the license
The company helps the client choose the right type of license for their activity, prepare all the required documents, and submit the application through the Ministry of Commerce website.
All of this is done in an organized and smooth way, without the client needing to waste time on complicated steps or follow up on procedures themselves.
Local experience and direct communication with government authorities
Whoever has experience in the Saudi market and direct connections with government bodies will definitely make the process easier and save a lot of time.
The company has worked with many clients before and was able to simplify all the steps for them in a professional and fast manner.
FAQs
How can I get a Trade License online from the Ministry of Commerce?
You can apply completely online through the Ministry of Commerce website, log in using "Absher," and complete the information so the license is sent to you electronically while you're at home.
Can I open different activities with one license?
Yes, you can register more than one activity under the same license (as long as they are in the same category), and this saves you time and money instead of making more than one license.
Roughly how much time is needed to secure the license?
If all your documents are ready, you get the license in minutes after payment, but some activities might take from one day to a week if they require extra approvals.
Do I need a Saudi partner or can I get the license by myself?
In most activities, you can get it by yourself without a partner, especially if they are not related to restricted activities.
But in some industrial or large commercial activities, a Saudi partner might be required.
What happens if I forget to renew the license?
You will pay a small late fee, and you might face delays in your official procedures and feel things are not moving until you renew it.
Is there a license for e-commerce?
Yes, it's now very easy to get a license for e-commerce if you're selling online, and you can even register with some support platforms like “Ma’roof.”