Commercial License in Saudi Arabia | Foreign Commercial License - Al Taasis

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Commercial(Trade) License
in Saudi Arabia

Obtaining a commercial license is an essential step for any business looking to operate in Saudi Arabia. The license grants businesses the legal authority to conduct commercial activities within the country and provides various benefits, including access to government services, protection of intellectual property rights, and the ability to apply for tenders and contracts. Please read our blog to learn about Import-Export Business in Saudi Arabia.

Trade Sector
in Saudi Arabia at a Glance

  • KSA is located at the crossroads of Europe, Africa and Asia
  • With 13 ports on the Arabian Gulf and the Red Sea, KSA facilitates 13% of global trade.
  • The Saudi ports contribute to the access of 70% of imports and 95% of its exports through 291 docks.
  • Free trade agreements with the Greater Arab Free Trade Area (GAFTA), the European Free Trade Association (EFTA) and Singapore.

Significance of Trade Sector in Saudi Arabia

The trade sector in Saudi Arabia presents a wealth of opportunities for businesses, making it an excellent destination for investment and growth.

Major Contributor to Saudi Economy

Saudi Arabia is the largest economy in the Middle East and North Africa (MENA), with well-developed infrastructure and abundant natural resources. The trade sector is a major contributor to the country's economy, with a strong focus on domestic and international trade.

Supportive Government

The government makes it an attractive business destination with various measures to promote and support the trade sector. The trade sector in Saudi Arabia offers a vast range of opportunities for businesses in industries such as retail, wholesale, import-export, and e-commerce.
Please read our blog to learn about Government Entities and Online Portals Dealing with importing and Selling in Saudi Arabia.

Growing Population

With a young and growing population, the country presents a massive market for consumer goods, making it a great place for businesses to invest and grow.

Ideal Location for Trade

The country's strategic location provides easy access to other markets, a fast-growing region of over 424 million consumers, making it an ideal hub for regional trade. Saudi Arabia shares land borders with Iraq, Jordan, Kuwait, Oman, Qatar, the United Arab Emirates, and Yemen, while its coastal borders are shared with Bahrain, Egypt, Eritrea, Iran, and Sudan.
Strategically located at the crossroads of Europe, Africa and Asia, Saudi Arabia is the epicentre of global trade routes and the heart of a fast-growing region of over 424 million consumers.

Free Trade Agreements

The Kingdom has signed free trade agreements with:

  • The Greater Arab Free Trade Area (GAFTA)
  • The European Free Trade Association (EFTA)
  • Singapore

Commercial Licensing Requirements in Saudi Arabia

Realising the importance of commercial activities, the Kingdom facilitates foreign investors to perform activities in the Saudi market’s wholesale trade and retail trade according to specific guidelines and conditions. With the support of Al Taasis, obtaining a commercial license can be a straightforward process, providing businesses with the legal authority to operate in the country and access to a range of benefits.

You have two options for the commercial license:

100% Foreign Commercial License
View Requirements

100% Foreign Commercial License

Foreign investors can get this license to carry out wholesale, retail, 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
    Contact us to obtain your Commercial License fast.
Commercial License with Saudi Shareholder
View Requirements

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. The investment license will mention Saudi shareholders with a share of at least 25% of the company.
  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.
Obtain Your Commercial License in Saudi Arabia Al Taasis Obtaining a commercial license can be complex and time-consuming, but it can be smooth and straightforward with the proper support. Our team of experts can assist you in obtaining a commercial license, providing you with all the information and guidance you need to get started. From company registration to business growth, we have got you covered. Contact us to obtain your Commercial License fast.
Contact us to obtain your Commercial License fast.