How to Get Business License in Saudi Arabia for Foreigners?
How to get business license in Saudi Arabia is a common question for companies aiming to tap into the Kingdom’s fast-growing economy, powered by strategic initiatives like Vision 2030. Entering the Saudi market successfully requires a thorough understanding of local regulations, starting with securing the correct type of business license. For legal advisors and professionals guiding clients through market entry or ongoing operations, having a clear grasp of the licensing framework is essential.
The process of how to get business license in Saudi Arabia involves navigating multiple government entities, fulfilling requirements that differ based on the business structure.
المحتويات
How to Get Business License in Saudi Arabia?
Obtaining a commercial license in Saudi Arabia requires following certain requirements and procedures that vary depending on the nature of the business activity you plan to engage in. The Saudi government offers different types of business licenses, including service licenses, industrial licenses, trading licenses, and more. Generally, the process involves the following steps:
- Choose the right license: Select the most suitable license based on your business activity and objectives. For example, if you plan to offer services like IT solutions or consultancy, a service license would be the right choice.
- Meet the requirements: Fulfill the specific conditions for the chosen license, such as the minimum capital requirement, having a business presence outside Saudi Arabia for a certain period, and complying with industry regulations.
- Submit the application: Prepare all necessary documents and submit them to the Ministry of Commerce.
- Obtain approval: Wait for the review and approval of your application to ensure compliance with local laws and regulations.
- Start operations: Once approved, you can officially start your business under the issued commercial license.
Read also: How to Start a Business in Saudi Arabia in 2025?
If you’re seeking comprehensive legal support to ensure a strong business foundation, Etqan Law Firmis your ideal partner. We offer a wide range of services, from company formation and contract drafting to dispute resolution and arbitration, ensuring a legally secure environment for your business growth.
Benefits of Obtaining a Business License Saudi Arabia for Foreigners
Saudi Arabia offers several unique advantages that make it an attractive destination for both local and international investors, including:
- Access to a Growing Market: Saudi Arabia has a large and expanding market with high demand for various goods and services, creating ample business growth opportunities.
- 100% Foreign Ownership: Many licenses allow full foreign ownership, giving international investors complete control over their ventures.
- Strategic Location: Positioned at the crossroads of three continents, Saudi Arabia is a prime hub for trade and global market access.
- Strong Government Support: The Saudi government offers incentives, subsidies, and initiatives to make business setup and growth easier.
- Diverse Business Sectors: The economy covers sectors such as oil and gas, healthcare, tourism, and technology, all offering promising investment opportunities.
Check out: How to Start Business in Saudi Arabia for Foreigners?
Types of Business Licenses in Saudi Arabia
The Saudi Arabian government provides eight types of business licenses for foreign companies looking to establish operations in the Kingdom. These licenses include: service license, entrepreneurial license, industrial license, agricultural license, real estate license, trading license, mining license, and professional license. Each license comes with its own set of requirements, benefits, and costs.
1- Service License
This license allows foreign companies to provide a wide range of services in Saudi Arabia, such as restaurant management, marketing agencies, IT solutions, web and app development, and other general services. Foreign companies can hold 100% ownership of a service company in Saudi Arabia.
Requirements:
- The company must be established outside KSA for at least one year (not a sole proprietorship).
- Minimum capital requirement of SAR 25,000.
2- Entrepreneurial License
Designed specifically for startups, this license offers various advantages, including reduced fees, simplified regulations, and access to government support programs.
Requirements:
- A patented idea, VC-backed project, or a support letter from a government entity (MISA, PIF, CODE, KAUST, TDF).
- Endorsement letter and MISA pre-approval.
3- Industrial License
This license enables foreign companies to set up manufacturing facilities in Saudi Arabia with full foreign ownership rights.
Requirements:
- The company must have been established outside KSA for over one year (not a sole proprietorship).
- Minimum capital requirement of SAR 25,000.
4- Agricultural License
This license allows foreign companies to engage in agricultural activities such as farming and livestock production, with 100% foreign ownership permitted.
Requirements:
- The company must be established outside KSA for at least one year (not a sole proprietorship).
- Minimum capital requirement of SAR 25,000.
5- Real Estate License
Granted to foreign real estate development companies when the total project cost (land + construction) is no less than SAR 30 million, with investments located outside the cities of Mecca and Medina. It is recommended to contact MISA directly for detailed requirements regarding this license.
6- Trade License (Commercial License)
This license allows foreign companies to import and export goods in Saudi Arabia, with 100% ownership allowed for foreign investors.
Learn about: Your Guide to Trade License Saudi Arabia in 2025
Conclusion
How to get business license in Saudi Arabia is more than just a process — it’s about being prepared and meeting every legal and regulatory requirement to ensure your business operates smoothly in the Kingdom. Partnering with experienced corporate lawyers, such as Etqan Law Firm, can help you navigate every step from structuring your business and managing paperwork to submitting your application and ensuring ongoing compliance.
The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: +966550600204, +966551020060.
Additionally, feel free to visit our branches located at:
- Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
- Riyadh: King Abdulaziz Street, across from the Kingdom Tower
- Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.
FAQ
1. How much does it cost to get a license in Saudi Arabia?
The cost of obtaining a commercial license in Saudi Arabia varies depending on the type of business activity, license category, and municipality. For Saudi nationals, costs can be around SAR 200 (excluding additional fees like Chamber of Commerce membership and municipal fees).
2. Can a foreigner start a business in Saudi Arabia?
Yes, a foreigner can start a business in Saudi Arabia, but they must first obtain a Foreign Investment License from the Ministry of Investment (MISA). This license allows foreign investors to own 100% of their business in many sectors. However, certain activities (e.g., trading) may require a higher minimum capital or a local partner.
3. How to be a consultant in Saudi Arabia?
To work as a consultant in Saudi Arabia, you typically need to:
Obtain a professional license (Consulting License) from the Ministry of Commerce or MISA (for foreigners).
Have relevant qualifications or experience in your consulting field (e.g., IT, business, legal, or financial consulting).
Register a legal entity (company or establishment) and comply with all commercial registration requirements.
Join professional bodies or associations if required by your field.
4. How much is a business license in Saudi Arabia for foreigners?
The cost for foreigners is generally higher due to additional fees for the Foreign Investment License (MISA). On average, it can be SAR 2000, depending on the type of license (service, industrial, trading, etc.). This excludes costs like commercial registration, Chamber of Commerce membership, and other administrative fees.
