No business in Saudi Arabia can run without a Saudi business licence, it’s the key to operating legally and building trust from day one, getting a licence is your first step — but it doesn’t have to be hard, we help you make it simple.
What is a Saudi Business Licence?
A Saudi business licence is your official permission to start and run a business in Saudi Arabia — legally and confidently, it’s the government’s way of saying: “You’re good to go.”
Without it, your business can’t open a bank account, sign contracts, or even market your services properly, it’s not only paperwork but also it’s the backbone of doing business the right way.
Types of Saudi Business Licences
You’ll need the right licence. Depending on what you want to do, there are different types, here’s a simple breakdown:
1.Commercial Licence: Planning to trade, sell products, or run a business, whether in stores or online? This one’s for you.
2.Industrial Licence: Got a factory or involved in manufacturing? This licence covers everything from production to machinery and factories.
3.Professional Licence: If you’re a consultant, designer, or freelancer, this licence lets you legally offer your services in Saudi Arabia.
4.Foreign Investment Licence (MISA): For foreign investors who want 100% ownership of their company in Saudi Arabia, the MISA licence is what you’ll need.
5.Service Licence: Want to run a service-based business like a restaurant, marketing agency, or IT service? This one lets foreign companies offer a wide range of services in Saudi Arabia.
6.Entrepreneurship Licence: Perfect for startups, this licence gives you perks like simplified rules, lower fees, and access to government support.
7.Agricultural Licence: If you’re into farming or livestock, this licence lets you operate in Saudi Arabia's agricultural sector.
8.Real Estate Licence: If you’re working on a real estate development project that’s over 30 million SAR (and outside Makkah and Madinah), this is your go-to licence.
9.Mining Licence: Interested in mining? This licence is for foreign companies in the mining business.
Picking the right licence is key, it determines everything from your company setup to legal responsibilities.
Not sure which one’s right for you? That’s where we come in. Let us help you figure it out from the start.
Read also: How to Obtain a Commercial License in Saudi Arabia Easily.
Comparison Saudi Business Licences: What’s Best for You?
Starting a business in Saudi Arabia? You’ll need to pick the right licence, each type has its own requirements and costs, here’s a quick comparison to help you decide which one fits your business:
Commercial Licence
If you’re thinking about opening a shop, starting an online store, or getting into trading, the Commercial Licence is the one you’ll need. It usually costs between 2,000 and 5,000 SAR per year, depending on the type of business you’re running.
You’ll have to set up a legal entity inside Saudi Arabia, and in some cases, you’ll also need a Saudi partner—unless you’re eligible for 100% foreign ownership.
Industrial Licence
Planning to run a factory or do any kind of manufacturing? Then you’re going to need an Industrial Licence, this licence covers businesses that produce goods or work with machinery.
It usually costs around 5,000 to 10,000 SAR per year, to get it, you’ll need to show a solid business plan and proof that you’ve set up actual production operations.
Professional Licence
If you’re offering services like consulting, freelancing, or design, the Professional Licence is what you’ll want, it starts at about 1,000 SAR, but the fee can vary depending on your field.
You’ll need to show your qualifications or experience, and in some professions like engineering, you might need a Saudi partner too.
Foreign Investment Licence (MISA)
For investors who want to fully own their business in Saudi Arabia, the Foreign Investment Licence from MISA is the key, it lets you have 100% ownership without needing a local partner.
This licence usually costs between 10,000 and 15,000 SAR, though bigger investments might pay more, you’ll need to submit a detailed business plan and proof of your foreign investment, like capital investment or a support letter from MISA.
Service Licence
Thinking of opening a restaurant, a marketing agency, or an IT company? The Service Licence is designed for businesses that offer services.
It costs around 5,000 to 8,000 SAR per year, depending on what you do, to qualify, you’ll need to show proof of your business activity and have a physical office or location set up.
Entrepreneurship Licence
Starting a new company or a startup? The Entrepreneurship Licence could be your best option, it’s made for startups that are less than five years old and comes with lower fees—usually between 1,000 and 3,000 SAR, plus, you might be able to access government support programs to help you grow.
Agricultural Licence
If you’re looking to get into farming or livestock production, you’ll need an Agricultural Licence, this licence costs about 3,000 to 6,000 SAR per year.
You’ll have to show proof of your agricultural activities and meet land and equipment requirements depending on the size of your operation.
Real Estate Licence
Planning a real estate development or property investment? You’ll need a Real Estate Licence, this licence usually costs between 10,000 and 15,000 SAR or more, depending on the size of your project.
Mining Licence
If you’re thinking of getting into mining activities, you’ll need a Mining Licence, the cost ranges from 7,000 to 12,000 SAR or more. To qualify, you’ll need to show proof of your mining operations and secure special permits for land use and environmental approval.
Be aware of the following:
- Prices may vary significantly depending on the licence type and business activity.
- All licences require a legal entity in Saudi Arabia, with some requiring a Saudi partner or full foreign ownership.
- Choosing the Right Licence depends on the type of business you wish to operate.
Why Do You Need a Business Licence in Saudi Arabia?
Getting a licence isn’t just a formality, it’s what allows you to start your business without headaches, here’s why it matters:
- It protects you from trouble: If you start your business without a licence, you could face fines, have your activity shut down, or run into legal issues, the licence protects you from all that.
- It makes people take you seriously: Banks, clients, and even partners won’t deal with you if your business isn’t licensed, the licence ensures everything runs smoothly from day one.
The Best Company to Help Investors get Saudi business licence
Getting a Saudi business licence can be a complex process, but with the right partner, you can make it much easier, Motaded here to guide you every step of the way.
Whether you’re an entrepreneur just starting out or a seasoned investor, we offer the expertise and support you need to get your business up and running smoothly.
Here’s why Motaded is the right choice for you:
- Free Initial Consultation: Get personalized advice and a clear roadmap for your business journey.
- Expert Document Preparation: We handle all the paperwork to ensure everything is accurate and compliant.
- Government Application Submission: We submit all your applications to the authorities, so you don’t have to.
How to Get a Business Licence in Saudi Arabia?
Thinking of starting your business in Saudi Arabia? The first thing you need to do is get a Saudi business licence, don’t worry, it’s not as complicated as it sounds! It’s just about following clear steps.
1. Decide What Your Business Will Do
Before you get any paperwork done, you need to figure out what kind of business you want to run:
- A restaurant? A clothing store? An online service? A mobile app?
- Will you be importing? Manufacturing? Offering services?
Each type of business has different requirements and licenses, so it’s important to choose wisely from the start.
2. Choose the Right Legal Structure
Now, you need to decide on the legal structure for your business:
- Are you going solo, or will you have a partner?
- Is it a branch of a foreign company?
This choice impacts things like legal responsibility, capital, taxes… so it’s not something to take lightly.
3. Register Your Business Officially
Once you’ve collected all details, you can make registration:
- If you’re a foreign investor, you’ll need to apply for a license from the Ministry of Investment (MISA).
- Then, you’ll register your company with the Ministry of Commerce and get your commercial registration.
You’ll need to submit some documents such as passport, partner details, business type, location, etc., but if you know what you’re doing, it’s pretty straightforward.
4. Local License and Any Extra Approvals
Now that your company is registered, you’ll need to get the local business licence so you can actually start operating:
- You need a physical location (office, shop, workshop) with a clear rental agreement.
- You’ll submit business and location details.
- You’ll also need to comply with safety and environmental standards.
If your business involves food, health, education, etc., you’ll also need additional approvals from other authorities.
What Documents Do You Need to Start Your Business in Saudi Arabia?
Starting a business in Saudi Arabia is a big step, but don’t worry – preparing the right documents is simpler than it seems, here’s what you need to get your business license:
1. ID or Passport:
First up, you’ll need to prove who you are, if you’re Saudi, your national ID will do the job, while if you’re a foreigner, your passport is what you’ll need.
2. Business Plan:
A business plan is like your roadmap, it’s where you lay out what your business is about, who your customers are, and how you plan to grow. It doesn’t have to be long or fancy, just clear enough to show you have a solid idea.
3. Company Address:
Next, you’ll need a place to call the “home” of your business, which could be an office, a retail shop, or even a home office, the point is, it should be a real address where you’ll be doing your business.
4. Necessary Approvals (If Needed):
Depending on the type of business, some extra approvals might be required. For example, a restaurant might need health department clearance, or a healthcare business might need some additional certifications, make sure to check if you need any special permissions before you start.
Read also: Al-Ula: A Gateway to Investment Opportunities in Saudi Arabia.
FAQs about Saudi business license
Do I need to live in Saudi Arabia to start a business there?
Nope! You don’t have to be living in Saudi to set up a company, you can do it from abroad.
How long does it take to get a business license?
It usually takes a few weeks, depending on the type of business and how fast your documents are ready.
Can foreigners own 100% of a business in Saudi Arabia?
Yes, they can! Foreigners can own the whole business, but you need to get your license from the Ministry of Investment (MISA).
Is setting up a company expensive?
It depends on your business type and the services you choose.
Can someone else handle the whole process for me?
Absolutely, that’s what companies like Motaded do, they walk you through the steps, deal with government stuff, and make sure your setup is 100% legal and smooth.
What happens after I get my license?
After getting your business licence , you’re officially allowed to start working! Next steps include opening a bank account, hiring staff (if needed), and launching your services.
So, don't hesitate if you need any help, you can contact us through:
- Email: [email protected]
- Or phone us at ( +966 53 979 7197 )