Business Set Up

Overview

A Service License is essential for businesses looking to set up operations in consultancy, IT, legal services, marketing, and other professional sectors in Saudi Arabia. This license is a key requirement for both local and international firms planning to establish a presence in the Kingdom. It facilitates foreign business registration in Saudi Arabia and the registration of businesses offering intangible goods or services.

Beneficiary Group

• Entrepreneurs and Small-to-Medium Enterprises (SMEs)
• International firms expanding their service operations and looking into foreign business registration in Saudi Arabia

Service Duration

The approval process for a Service License typically takes between 2 to 4 weeks, depending on the completion of necessary documentation and compliance with regulatory requirements.

Objectives

• Encourage the growth of the service sector to boost Saudi Arabia's economy in alignment with Vision 2030 .
• Support the development of professional and knowledge-based services in Saudi Arabia, with an emphasis on business setup in KSA .
• Facilitate foreign investment by offering incentives and a streamlined process for setting up business operations in Saudi Arabia .
• Promote innovation and attract global expertise to Saudi Arabia's diverse and growing market.

Advantages

• Legal recognition to operate within Saudi Arabia’s expanding service sector.
• 100% foreign ownership is permitted for service-oriented businesses in certain free zones.
• Access to Saudi Arabia’s fast-growing market with numerous opportunities across various sectors.
• Eligibility for government incentives like tax exemptions, business registration in Saudi Arabia , and simplified regulations.
• The ability to obtain investor visas and work permits for employees.
• Access to Saudi Arabia’s robust infrastructure and proximity to global markets.
• Favorable investment climate , supported by ongoing developments as part of the Vision 2030 program.

Requirements for a Service License

• Application Form : Complete the required forms for company registration in Saudi Arabia .
• Business Plan : Provide details on services, target market, and financial projections.
• Proof of Identity : Submit passport copies for foreign investors or national IDs for local applicants.
• Lease Agreement : Provide evidence of physical business premises or a virtual office contract in Saudi Arabia, which is essential for starting a business in Saudi Arabia .
• Regulatory Approvals : Obtain additional approvals if operating in sectors like legal, IT, or consulting.
• Financial Records : Show evidence of sufficient funds to operate the business.
• Articles of Incorporation : Submit legal documentation proving company establishment.

Steps to Obtain a Service License

1. Consultation : Choose the right license based on the nature of your business.
2. Prepare Documents : Gather all required documents, including proof of identity, a detailed business plan, and regulatory approvals for foreign business registration in Saudi Arabia .
3. Submit Application : Submit all necessary forms and documents.
4. Approval & Payment : Pay the applicable fees and wait for the license approval.

License Issuance : Once approved, you can start your business operations in Saudi Arabia , including hiring employees and signing contracts.

Frequently Asked Questions (FAQs)

What is the duration to obtain a Service License?

The process usually takes 2 to 4 weeks

What are the primary requirements?

You will need a business plan, application form, identity documents, proof of address, and any relevant regulatory approvals for your business sector.

Can foreign companies apply?

Yes, foreign companies can apply for a service license and register a foreign company in Saudi Arabia.

Do I need a physical office to apply for a Service License?

Yes, proof of a business address is required, which can be through a lease or virtual office agreement.

Can I apply for a Service License remotely?

Yes, documents can be submitted online, though some physical verification may be required during the process.

What sectors are eligible for a Service License?

Eligible sectors include consultancy, IT, marketing, legal services, and others related to business setup for foreigners in Saudi Arabia.

What incentives are available for businesses with a Service License?

Businesses with a service license may benefit from tax exemptions, streamlined processes, access to investor visas, and government-backed initiatives supporting foreign investment in Saudi Arabia.

What are the next steps after obtaining the license?

After obtaining the license, you can start hiring employees, signing contracts, and conducting business in Saudi Arabia legally.

How much does it cost to obtain a Service License?

Costs vary depending on the type of business, with applicable government fees during the application process.