Business Set Up in Saudi Arabia

Overview

Business Setup in Saudi Arabia through the Ministry of Investment

For foreign companies wishing to establish and register a business in Saudi Arabia, the Ministry of Investment provides one of the easiest and fastest pathways. Since the regulatory updates in 2017, foreign investors have been able to obtain a MISA license, which significantly streamlined entry into the Saudi market.

 

General Requirements for Foreign-Owned Licenses

Foreign companies seeking a 100% foreign-owned license must submit documents that vary depending on the type of license requested. For example, a service license or industrial license requires:

  • A commercial registration valid for one year, attested by the Saudi Embassy or Apostille.
  • The company’s Articles of Association, attested by the Saudi Embassy or Apostille.
  • The company’s audit reports (total income is not a determining factor), attested by the Saudi Embassy or Apostille.
 

Types of Licenses

1. Service License

  • Allows businesses to provide services in Saudi Arabia (e.g., contracting, IT, education, healthcare).
  • Does not permit retail, wholesale, or trading activities unless a separate commercial license is obtained.
 

2. Commercial License

  • Enables trade, retail, wholesale, and e-commerce activities.
  • Allows import/export and product certification with entities such as the Saudi Food and Drug Authority (SFDA).
  • Requirements:
    • Three commercial registrations from three different countries, attested.
    • Parent company’s Articles of Association, attested.
    • Parent company’s audit reports, attested.
    • Investment of 30 million SAR in the first year (via account activity, assets, or goods — not necessarily a bank deposit).
    • Investment of 300 million SAR over the first five years.
 

3. Real Estate License

  • Permits foreign investors to establish a company or branch for real estate investment.
  • No Saudi partner required.
  • Requirements:
    • Commercial registration valid for one year, attested.
    • Articles of Association, attested.
    • Audit reports, attested.
    • Minimum capital of 30 million SAR, including land/property value and construction or finishing costs.
 

4. Industrial License

  • For companies wishing to establish factories and engage in industrial activities.
  • No Saudi partner required.
  • Benefits:
    • Import/export of machinery and equipment with only a 5% customs duty.
    • Permission to sell products inside and outside the Kingdom if manufactured locally.
  • Requirements similar to the service license.
 

5. Professional or Consulting License

  • For companies offering professional services (law, accounting, legal, administrative, industrial, or mining consultancy).
  • Requires a Saudi partner holding the same license in the same field.
  • Conditions:
    • Commercial registration valid for one year, attested.
    • Articles of Association, attested.
    • Financial statements, attested.
    • Saudi partner with at least 25% ownership and a license in the same profession.
 

6. Engineering Consultancy License

  • For foreign companies establishing engineering consultancy offices.
  • No Saudi partner required.
  • Conditions:
    • Four commercial registrations in four different countries in the same field, attested.
    • Most recent financial statements, attested.

Service snapshot
Beneficiary group

Beneficiary group

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

Service Duration

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 business setup Process in Saudi Arabia.

Get a company in Saudi Arabia without any Saudi partner and with a percentage of 100% within 3 working days for a Ministry of Investment license

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.

Steps to Obtain
1

Consultation

Choose the right license based on the nature of your business.

2

Prepare Documents

The documents being the article of association, the commercial registration and last year's audit reports and they all have to be attested by the Saudi embassy or Apostille

3

Submit Application

Submit all necessary forms and documents.

4

Approval & Payment

Pay the applicable fees and wait for the license approval.

5

License Issuance

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

FAQs

Frequently Asked Questions (FAQs)

What is the duration to obtain a Service License in Saudi Arabia?

The process usually takes 2 to 4 weeks

What are the basic requirements for Setting up a business in Saudi Arabia?
  • Commercial registration certificate
  • Articles of association
  • Financial statements for the last year (note that the total for the company does not matter)
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.

Beneficiary Group

Beneficiary Group

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

Service Duration

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.