Types of Business Licenses Offered by the Ministry of Investment Saudi Arabia (MISA) to Foreign Investors

You want to expand your business into the Kingdom of Saudi Arabia, but you know nothing about the procedures. Don’t worry! The business setup in Saudi Arabia is not a hard nut to crack. All you need is proper guidance about the available license options. We will provide you with detailed information through this blog.

Move forward to the next step with Al Taasis.

Foreign Direct Investment on the Rise in Saudi Arabia

Foreign investment is at its peak in Saudi Arabia, reaching a historical high in Q1 2022 with a record-breaking number of new licenses. Saudi Arabia marks the seventh consecutive quarterly rise, the first quarter witnessing 9,383 new foreign investment licenses.

The Number of Newly Issued Foreign Investment Licenses (quarterly)

9383, new licenses issued in Q1 2022 (total)
19x increase compared to Q1 2021
350% quarterly increase in licenses

Get an Investor License in Saudi Arabia

The Ministry of Investment caters to local and international investors equally with the same rights and obligations. The Ministry of Investment, along with the Ministry of Foreign Affairs and the Ministry of Commerce, has accelerated the issuing of investment licenses as per international best practices.

List of Business Licenses Offered by MISA

Regional Headquarters License

Audiovisual Media License

License for Scientific and Technical Office

Printing and Publishing License

Professional License with Shareholder

License for Serving Agents and Providing Workers Services

Services License

A service activity license covers the following activities:

Constructions
Administrative Investment
Information Technology
Tourism
Training
Health
Insurance and Re-Insurance
Education
Advertising and Media
Logistic Services
Organising Exhibitions
Catering and Food Services
Financial Services
Aviation and Handling Services

Required Documents

1. You will provide these:

a) A copy of the commercial registration of the shareholding partner certified by the Saudi Embassy.
b) A copy of the national identity, if one of the partners is a natural person holding the nationality of one of the GCC countries (in case his data is not registered in the ABSHAR system).

2. You will provide the foreign company’s financial statements for the last financial year certified by the Saudi Embassy.

Rules and Restrictions

- 1. There should be consistency between the total percentage of the Saudi shareholder(s) and the capital as per the financial limits stated for the type of activity.
- 2. Premium residence holders have an exemption for the above documents.
- 3. If one of the partners was previously licensed by the Ministry of Investment, it must be mentioned in the partners’ data while filling out the electronic application.
- 4. The applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies while filling out the electronic application.
- 5. In case the license is a health activity, the following shall be required:
  - – The legal entity must be a company.
  - – The health facility must have accreditation from a recognised health organisation.
  - – Have at least three years of experience in the country of the establishment.

Industrial License

You can get industrial licenses for heavy and light industries and transformative industries.

Required Documents

1. You will provide these:

- - a) A copy of the commercial registration of the shareholding partner certified by the Saudi Embassy.
  - b) A copy of the national identity if one of the partners is a natural person holding the nationality of one of the GCC countries (in case his data is not registered in the ABSHAR system).

2. You will provide the foreign company’s financial statements for the last financial year certified by the Saudi Embassy

Rules and Restrictions

1. If one of the partners was previously licensed by the Ministry of Investment, it must be mentioned in the partners’ data while filling out the electronic application.

2. Premium residence holders have an exemption from providing the above documents.

3. The applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies during the electronic application submission.

4. The licensee must rehearse the Ministry of Industry and Mineral Resources to obtain an industrial license and the General Presidency of Meteorology and Environmental Protection to acquire an environmental approval.

License for a Scientific and Technical Office

This license is for the foreign companies that distribute their company products through Saudi agents across the Kingdom and intend to open an office for providing scientific and technical services to agents, distributors and consumers of their products.

Required Documents

You will provide:

- - 1. A copy of the commercial register of the participating entity authenticated by the Saudi Embassy.
  - 2. A copy of the agency authorising the agent or distributor.

Rules and Restrictions

- - 1. The scientific and technical office will be required to conduct market feasibility studies on the company’s activity and prepare reports for the main centre. An annual summary of its activities must be submitted to the Ministry of Investment.
  - 2. The office is prohibited from performing any contracts, commercial activities, or investments in the Kingdom directly or indirectly. It is also prohibited from charging fees for training Saudi technicians.

Real Estate License

This license is provided to foreign companies in the property field if:

- - The total cost of the project, including both land and construction, is not less than 30 million Saudi riyals.
  - The investment is established outside the cities of Mecca and Medina.

Required Documents

1. You will provide these:

- - a) A copy of the commercial registration of the shareholding partner certified by the Saudi Embassy.
  - b) A copy of the national identity if one of the partners is a natural person holding the nationality of one of the GCC countries (in case his data is not registered in the ABSHAR system).

2. You will provide the applicant’s foreign company’s financial statements for the last financial year certified by the Saudi Embassy.

Rules and Restrictions

- - 1. There should be consistency between the total percentage of the Saudi shareholder(s) and the capital as per the financial limits stated for the type of activity.
  - 2. Premium residence holders have an exemption for the above documents.
  - 3. If one of the partners was previously licensed by the Ministry of Investment, it must be mentioned in the partners’ data while filling out the electronic application.
  - 4. The applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies while filling out the electronic application.
  - 5. In case the licensed business is related to property investment projects, the amount of the project to be constructed shall not be less than (30,000,000) Saudi Riyals for land and building outside the scope of Mecca and Medina.

Commercial License

Realising the importance of commercial activities, the Kingdom facilitates foreign investors to perform activities in the wholesale trade and retail trade in the Saudi market according to specific guidelines and conditions. You have two options for the commercial license:

- - 1. 100% foreign commercial license
  - 2. Commercial license with Saudi shareholder

100% Foreign Commercial License

Foreign investors can get this license to carry out activities in wholesale trade, retail trade and e-commerce in the Kingdom of Saudi Arabia.

Required Documents

- - 1. You will provide a copy of the commercial register in at least (3) regional or international markets of the participating entity authenticated by the Saudi Embassy.
  - 2. Your financial statements for the company’s last financial year certified by the Saudi Embassy.

Rules and Restrictions

- - 1- Only foreign companies with a regional or international presence at least in (3) markets can avail of this license.
  - 2- If one of the partners was previously licensed by the Ministry of Investment, it must be mentioned in the partner’s data while filling out the electronic application.
  - 3- The minimum capital required to practice wholesale and retail trade activity, according to the Ministry of Investment for foreign companies with a 100% ownership percentage, is (30) million Saudi Riyals.
  - 4- During the first five years, the company shall comply with meeting the following standards:
    - Achieving the localisation rates as determined by the Ministry of Labour and Social Development by developing and implementing a plan to locate them in senior management posts and to ensure their continuation.
    - Training (30%) of Saudi employees annually.
  - 5- The company shall comply to achieve one of the following options:
- - Investment of no less than 300 million Saudi Riyals (including 30 million Saudi Riyals as the cash capital of the company) over five years starting from the date of obtaining the investment license.
  - Investment of no less than 200 million Saudi Riyals (including 30 million Saudi Riyals as the cash capital of the company) over five years starting from the date of obtaining the investment license, in addition to achieving one or more of the following requirements during the first five years:

The Standard	Minimum Requirement
Manufacturing	30% or more of the company’s products distributed locally shall be manufactured in the Kingdom of Saudi Arabia
Research and development programs	5% or more of total sales shall be allocated to the establishment of research and development programs in the Kingdom
Logistics and distribution	The establishment of a unified centre to provide those services and provide after-sales services

Commercial License with Saudi Shareholder

Foreign investors can get this license to carry out activities in wholesale trade, retail trade and e-commerce in the Kingdom of Saudi Arabia with a Saudi shareholder.

Required Documents

You will provide these documents:

- - 1. A copy of the commercial registration of the shareholding partner certified by the Saudi Embassy and a copy of the national identity, if one of the partners is a natural person holding the nationality of one of the GCC countries (in case his data is not registered in the ABSHAR system).
  - 2. Your financial statements for the company’s last financial year certified by the Saudi Embassy.

Rules and Restrictions

- - 1. Saudi shareholder with a share of not less than 25% of the company will be mentioned in the investment license.
  - 2. Premium residence holders have an exemption from providing the above documents.
  - 3. If one of the partners was previously licensed by the Ministry of Investment, it must be mentioned while filling in the partner’s data in the electronic application.
  - 4. The applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies in the electronic application.

License for Transport

International companies that wish to provide public land transport services can get this license. There are various investment options in public transport services, namely:

- - 1. License to practice bus public transportation within cities
  - 2. License to practice metro public transportation within cities
  - 3. License to practice other transport.

Consulting License for Engineering Offices

Foreign companies that wish to provide engineering consultation services inside the Kingdom with 100% possession can get this license.

Required Documents

- - 1. You will provide copies of the commercial registrations of the participating entity in the same field in four countries authenticated by the Saudi Embassy.
  - 2. Your financial statements for the company’s last financial year certified by the Saudi Embassy.

Rules and Restrictions

- - 1. The foreign company or its related companies shall be licensed in the same field at least in four countries.
  - 2. The company shall have at least ten years of experience.
  - 3. The applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies during the electronic application submission.

Entrepreneur License

Entrepreneurs who wish to establish pilot projects accredited by Saudi universities or business incubators can get this license.

Required Documents

- - 1. You will provide the Board of Directors’ decision to get a license, stating the invention type, its sponsors and the powers. Additionally, a copy of the national identity if one of the partners is a natural person holding the nationality of one of the countries of the Gulf Cooperation Council; and a copy of the national identity if one of the partners has the Saudi nationality/ Iqama and passport for the license applicant.
  - 2. Obtain a letter of support from the supervising authority (Saudi universities or business incubators) within the Kingdom, including the name of the project, the required activity, ownership data and contact information for the supervising authority.

Rules and Restrictions

- - 1. If one of the partners was previously licensed by the Ministry of Investment, it must be mentioned while filling in the partners’ data during the electronic application.
  - 2. Authorised Saudi universities or business incubators shall approve the license applications.
  - 3. If the applicant is a resident of the Kingdom, the Saudi sponsor should submit a letter of no objection.
  - 4. The license duration is one year and is renewed annually for the first five years with the approval of the supervising authority.
  - 5. The applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies during the electronic application submission.

Consulting License for Technical & Economic Communication Offices

This license is provided to economic and technical Offices associated with countries wishing to have a license.

Required Documents

- - 1. You will provide a resolution addressed to the Ministry of Investment from ministries, governmental bodies and competent authorities to open a technical and communication office in the Kingdom.
  - 2. You will submit a letter from the Ministry of exterior addressed to the Ministry of Investment requesting the issuance of the license for opening an Office of Economic and Technical Communication with a detailed work plan for the businesses and services to be provided within the Kingdom.

Rules and Restrictions

- - 1. The office may study markets and prepare reports for concerned bodies in the countries that want to have licenses. The office shall submit an annual summary of its businesses to the Ministry of Investment.
  - 2. The office is prohibited from executing any contracts, businesses, or investments in the Kingdom, directly or indirectly.
  - 3. Ministry of Investment has the right to revoke the license or not renew it whenever it deems the office’s role is beyond the authorised purpose.

License for Serving Agents and Providing Workers Services

Foreign companies can get this license to engage in domestic labour placement services and temporary employment agency activities for home services in the Kingdom.

Required Documents

- - 1. You will provide a copy of the commercial registration of the shareholding partner certified by the Saudi Embassy and a copy of the national identity if one of the partners is a natural person holding the nationality of one of the GCC countries (in case his data is not registered in the ABSHAR system)
  - 2. Your financial statements for the three last financial years of the company certified by the Saudi Embassy.

Rules and Restrictions

- - 1. The obligation to submit a performance evaluation certificate from the authority supervising the activity of exporting the activity in the country of dispatch indicating the applicant’s historical record and the legal notes, if any.
  - 2. The obligation to submit a certificate issued by the supervisory authority in the investor/investor country that no final judgment was issued against any of the natural partners for a crime involving dishonour or breach of trust, or any of the violations related to the provisions governing child protection or combating trafficking in persons, unless he is considered.
  - 3. Commitment to the undertaking that any of the partners have not previously obtained a license to export labour or was a partner in a company practising this activity and its license has been revoked by a decision or a court ruling unless at least five years have passed since that.</li.
  - 4. Commitment to acknowledge and read and abide by the regulations and instructions in the Kingdom and the regulations and instructions governing the recruitment activity in the Kingdom.
  - 5. If one of the partners was previously licensed by the Ministry of Investment, it must be clarified when filling in the partners’ data while submitting the electronic application.
  - 6. The commercial registration of the entity requesting the license must have experience of at least three years to practice the activity.
  - 7. The applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them and the commercial registration data for the participating Saudi companies during the electronic application submission.

Licensing of Audiovisual Media

This license is for foreign companies wishing to engage in broadcasting and other audio-visual media activity in the Kingdom

Required Documents

- - 1. You will provide a copy of the commercial registration of the shareholding partner certified by the Saudi Embassy and a copy of the national identity if one of the partners is a natural person holding the nationality of one of the GCC countries (in case his data is not registered in the ABSHAR system).
  - 2. Your financial statements for the company’s last financial year and certified by the Saudi Embassy.

Rules and Restrictions

- - 1. In case one of the partners was previously licensed by the Ministry of Investment, it must be mentioned while filling in the partners’ data during the electronic application.
  - 2. Premium residence holders are exempted from the above documents.
  - 3. Commitment to implement all the organised commitments of the activity, including the standards and percentages of Saudization approved by the Ministry of Labor and Social Development
  - 4. The applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies during the electronic application submission.

Licensing of Printing and Publishing

This license is provided to foreign companies that wish to conduct various activities in the printing and publishing field.

Required Documents

- - 1. You will provide a copy of the commercial registration of the shareholding partner certified by the Saudi Embassy and a copy of the national identity if one of the partners is a natural person holding the nationality of one of the GCC countries (in case his data is not registered in the ABSHAR system).
  - 2. Your financial statements for the last three financial years of the company certified by the Saudi Embassy.
  - 3. You will provide copies of the commercial registrations of the participating entity in the same field in 3 international countries authenticated by the Saudi Embassy.

Rules and Restrictions

- - 1. In case one of the partners was previously licensed by the Ministry of Investment, it must be mentioned while filling in the partners’ data during the electronic application.
  - 2. The applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies during the electronic application submission.
  - 3. Commitment to implement all the organised commitments of the activity, including the standards and percentages of Saudization approved by the Ministry of Human Resource and Social Development.
  - 4. The foreign company shall be licensed in the same field at least in 3 countries.
  - 5. The company shall have at least three years of experience in the same field.

Professional License with Saudi Shareholder

This license is provided to foreign companies wishing to practice professional activities in the Kingdom with a Saudi partner.

Required Documents for Professional Partners:

- - 1. You will provide a copy of the commercial registration of the participating foreign establishment, authenticated by the Saudi Embassy (the commercial registration shows the company’s professional activity).
  - 2. Your financial statements of the company’s last financial year and certified by the Saudi Embassy (if the company was not licensed by the Ministry of Commerce with a previous professional activity.)
  - 3. You will provide a copy of the national identity if one of the partners is a natural person (individual) holding the nationality of one of the GCC, or a copy of the national identity if one of the partners has Saudi nationality and a statement issued by “ABSHAR” System to prove the profession. You will also provide a copy of the professional license for each partner from the competent authority in the Kingdom.

For Non-Professional Partners:

- - 1. You will provide a copy of the commercial registration of the shareholding partner certified by the Saudi Embassy and a copy of the national identity if one of the partners is a natural person holding the nationality of one of the GCC countries (in case his data is not registered in the ABSHAR system).
  - 2. Your financial statements for the company’s last financial year certified by the Saudi Embassy.

Rules and Restrictions

- - 1. The existence of a professionally licensed Saudi partner with a share not less than 25%, according to the minimum limits specified by the type of activity.
  - 2. The percentage of shares of non-professionals, whether Saudi or Gulf or holders of distinctive residence or non-professional companies, does not exceed 30%.
  - 3. The non-Saudi professional company participating or contributing to the company should have a distinguished reputation in the field of the free profession.
  - 4. The non-Saudi professional company participating or contributing to the professional company should have one or more representatives who have a license to practice the profession that replaces the activity of the professional company from the competent authority in the country of the non-Saudi professional company or his country, in every profession in which the company participates or contributes professional.
  - 5. The non-Saudi professional company provides expertise and technical knowledge to the professional company and trains Saudis.
  - 6. Obtaining the approval of the competent authority in the Kingdom in cases where this is required.
  - 7. In case one of the partners was previously licensed by the Ministry of Investment, it must be mentioned while filling in the partners’ data during the electronic application.
  - 8. The applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies during the electronic application submission.

Agricultural License

This license is provided to establishments that wish to practice agricultural activities.

Required Documents

- - 1. You will provide a copy of the commercial registration of the shareholding partner certified by the Saudi Embassy and a copy of the national identity if one of the partners is a natural person holding the nationality of one of the GCC countries (in case his data is not registered in the ABSHAR system).
  - 2. Your financial statements of the last financial year of the foreign company certified by the Saudi Embassy.

Rules and Restrictions

- - 1. Consistency between the total percentage of the Saudi (shareholder/ shareholders) and the capital according to the financial limits set forth for the type of activity.
  - 2. Premium residence holders are exempted from the above documents.
  - 3. If one of the partners was previously licensed by the Ministry of Investment, it must be clarified when filling in the partners’ data while submitting the electronic application.
  - 4. The applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies during the electronic application submission.

Mining License

This license is provided to establishments that wish to practice mining activities in the Kingdom.

Required Documents

- - 1. You will provide a copy of the commercial registration of the shareholding partner certified by the Saudi Embassy and a copy of the national identity if one of the partners is a natural person holding the nationality of one of the GCC countries (in case his data is not registered in the ABSHAR system).
  - 2. Your financial statements of the last financial year of the foreign company and certified by the Saudi Embassy.

Rules and Restrictions

- - 1. Consistency between the total percentage of the Saudi (shareholder/ shareholders) and the capital according to the financial limits set forth for the type of activity.
  - 2. Premium residence holders are exempted from the above documents.
  - 3. In case one of the partners was previously licensed by the Ministry of Investment, it must be mentioned while filling in the partners’ data during the electronic application.
  - 4. The applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies during the electronic application submission.

Regional Headquarters (RHQ) License

This license is provided to multinational groups wishing to establish their RHQ in the Kingdom as a unit duly established under the laws of Saudi Arabia to support, manage, and provide strategic direction to its branches, subsidiaries and affiliates operating in the MENA region.

Required Documents

- - 1. You will provide a copy of the commercial registration or a commercial license, attested at the level of the Saudi Embassy in the respective country.
  - 2. You will provide copies of at least two commercial registrations or licenses issued in two different countries, excluding the Kingdom of Saudi Arabia and the country where the headquarters of the Multinational Group is located, attested at the level of the Saudi Embassy in the respective countries.
  - 3. You will provide the annual audited consolidated financial statements of the last financial year of the applicant, attested at the level of the Saudi Embassy in the respective country.

Rules and Restrictions

- - 1. The multinational group has a presence minimum in two different countries, excluding the Kingdom of Saudi Arabia and the country where the multinational group’s headquarters is located, either through subsidiaries or branches.
  - 2. The RHQ is established as a separate legal personality in the Kingdom of Saudi Arabia, either as a company or as a registered branch of a foreign company.
  - 3. The RHQ shall not directly conduct commercial operations that generate revenue other than RHQ License activities.
  - 4. The RHQ must commence the mandatory RHQ activities within six months of issuing the License.
  - 5. The RHQ must commence at least three optional RHQ activities within one year of issuing the RHQ License.
  - 6. RHQ employees carrying on mandatory RHQ License activities must have the relevant skills and knowledge developed at the headquarters or another regional headquarters of the Multinational Group; at least three employees must be Executive Director and Vice President.
  - 7. The RHQ must employ at least 15 full-time employees deployed in the conduct of RHQ activities within one year of issuing the RHQ License (including the senior level executives mentioned in point 6 above).
  - 8. The RHQ License is subject to cancellation by the Ministry of Investment in any of the following situations:
    - – Failure to commence the mandatory or optional RHQ License activities or to hire the minimum number of employees within the stipulated periods.
    - – The cessation of any mandatory RHQ activities or a minimum of three optional RHQ activities.
    - – The cessation of satisfying any RHQ License conditions by the RHQ or the Multinational Group.
    - – Violation of any licensing regulation established by MISA constituting ‘Grounds for Cancellation’.