How the Saudi General Investment Authority Simplifies Your Investment Journey

The Saudi General Investment Authority, plays a vital role in promoting and facilitating investment opportunities across the Kingdom of Saudi Arabia. As the main regulatory body, it is responsible for issuing investment licenses that enable both local and foreign investors to establish and grow their businesses within the country. MISA also ensures that all investments comply with the relevant laws and regulations, creating a secure and transparent environment for business activities.

For investors, understanding the detailed requirements for obtaining, maintaining, and renewing an investment license is crucial to successfully navigating the Saudi market and maximizing their potential for growth and success.

Requirements for Issuing a License from Saudi General Investment Authority

1. Completion of the auditing process for the application submitted through the National Program to Combat Commercial Concealment platform in Saudi Arabia.
2. Submission of proof of financial revenues amounting to at least 2 million SAR, either through an accredited financial statement or by demonstrating a workforce of 50 or more employees according to the social insurance certificate.
3. The commercial registration of the establishment requesting correction must have been issued before the start date of the corrective campaign.
4. Residents in the Kingdom must provide a no-objection letter from their Saudi sponsor.
5. In case of a foreign partner, they must hold a valid resident ID under the sponsorship of the establishment requesting the correction.

Application Procedure for Obtaining the Investment License

After obtaining an approval number from the Committee for Handling Violations of the Concealment Law, the following steps should be taken:

1. Visit the official website of the Ministry of Investment.
2. Log in to the electronic services portal and create a new account.
3. Complete the investment license application form according to the type of activity.
4. Attach all required documents related to and supporting the type of activity.
5. Pay the issued invoice after approval to proceed with the license issuance.
6. Proceed to the Ministry of Commerce to complete the remaining procedures for the establishment contract or amended contract and commercial registration.

Read also: What is The Limited Liability Company Saudi Arabia?

Steps to Obtain an Investment License for Foreigners

A lawyer specializing in foreign investment in Saudi Arabia explains the necessary steps for a foreigner to obtain their own investment license. These steps include:

1. Registering on the Ministry of Investment’s official website.
2. Applying for the investment license service.
3. Entering the basic information related to the application, including selecting the license duration, type, and business activity.
4. Registering the partners’ details, whether individuals or legal entities.
5. Providing contact information of the applicant.
6. Reviewing all entered data for accuracy.
7. Approving the application, followed by the issuance of a payment invoice.
8. A primary identification number is created upon submission of the application.
9. After paying the invoice electronically or via bank cards, the license will be sent electronically to the applicant’s email.

Therefore, it is essential to seek assistance from an experienced lawyer in Riyadh, such as experts from Etqan Law Firm, who have extensive expertise in company formation procedures in Saudi Arabia. They can advise you on the requirements for establishing a branch of a foreign company and forming partnership companies for foreigners. You may also be interested in information regarding company formation in Saudi Arabia for Gulf nationals.

Check out: Saudi Company Register: What Is The Best Process?

Renewal of the Investment License – Saudi Investment Authority

Once an investment license is issued to initiate a business in Saudi Arabia, renewing it becomes essential to continue operations. The Saudi Investment Authority offers a renewal service that allows investors in economic cities to extend their licenses for one year or up to five years for strategic establishments.

This service is available to business sector investors and developers, provided they have already completed the initial investment license issuance and have registered their property ownership or lease agreements with the main developer.

Key Requirements for License Renewal

1. Full compliance with all applicable regulations in the economic cities and across Saudi Arabia.
2. The investor must have a clean legal record and good commercial reputation.
3. The entity’s record must be free from any operational, legal, or financial violations.
4. Renewal must be initiated within 90 days before the license expiration date.
5. Ownership or lease contracts must be documented with the Economic Cities Authority.
6. All required approvals and permits related to the business activity must be secured.
7. Completion of all relevant governmental registrations and documentation, such as Saudization certificate, commercial registration, Zakat and tax certificate, and social insurance registration.
8. If a company representative is assigned, legal authorization (either a notarized power of attorney or a chamber-certified delegation) must be provided.
9. Authorized signatories must validate post-establishment decisions through the chamber of commerce.

Investment License Renewal Fees

• The renewal fee for the first year is SAR 10,000.
• For subsequent years, the renewal cost increases to SAR 60,000 annually.
• The initial license issuance fee is SAR 2,000 per year, for up to 5 years.
• Payment must be made within 60 days from the invoice date; otherwise, the service will be canceled, and a new application will be required.

Steps to Register with the Saudi General Investment Authority

1. Visit the Saudi general investment authority
2. Submit the Investor Registration Application if you meet the eligibility criteria.
3. Attach all required documents to your application.
4. The authority will review your request and verify that all documents are complete.
5. The licensed applicant will be notified of the submission through the online portal.
6. A final decision will be sent to the applicant, along with a notification of either approval or rejection.

Services Offered by the Saudi General Investment Authority

The Saudi arabian general investment authority sagia​ is a versatile government body offering several critical services, including:

• Advisory Services: The Ministry offers expert consultations tailored to different sectors, helping companies address business needs through localized solutions based on global and regional expertise.
• Government Support: The Ministry acts as a liaison between investors and Saudi government entities, ensuring smooth communication and service delivery through business centers that simplify and accelerate the start and continuity of operations.
• Market Research: The Ministry provides comprehensive market studies for local sectors and identifies investment opportunities. It promotes these through an Investment Guide, helping both new and existing investors evaluate and turn opportunities into tangible projects.

Learn about: What are The Types Of Companies In Saudi Arabia?

Conclusion

Navigating the licensing process through the Saudi general investment authority is a fundamental step for successful investment in the Kingdom. Whether you are a local entrepreneur or a foreign investor, meeting the regulatory requirements, submitting accurate documentation, and adhering to renewal protocols ensures smooth business operations. Engaging experienced legal professionals can further simplify the process and help unlock the full potential of Saudi Arabia’s dynamic investment landscape.

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: +96656113776, +966541110440, +966504315333.

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