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Business Licenses in Arabia

The Saudi Arabia Vision 2030 initiative has led to a business-friendly environment in the country that supports innovation and entrepreneurship. It has widened opportunities for local and foreign entrepreneurs.

Before starting a business venture in Saudi Arabia, the entrepreneur has to obtain  one or more of the business licences mentioned below.

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    How can Helpline Group assist with obtaining Business Licenses in Saudi Arabia?

    With over 25 years of experience and commitment to deliver swift and accurate services, the Helpline Group in Saudi Arabia is in the forefront of company formation services in the Country. 

    Passionate about their work and with in-depth knowledge of Saudi Arabian laws and regulations, our team of professionals make your journey to start a company of your choice hassle-free and successful.

    Company Formation in Saudi
    Types of Business Licenses in the Kingdom of Saudi Arabia
    • Service License:  It allows foreign companies to provide a wide range of services in Kingdom of Saudi Arabia including construction, technology, education, restaurants, IT, etc.
    • Entrepreneurial License:  This is basically meant for start-ups and offers a number of benefits such as streamlined regulations, reduced fees, and access to government support programs.
    • Industrial License:  This licence empowers foreign companies to establish manufacturing facilities in the country with 100% ownership.
    • Agricultural License: With this license, foreign companies can take up agricultural activities like farming, and livestock production.  It permits 100% foreign ownership.
    • Real Estate License: For foreign real estate companies investing above SAR 30 million.
    • Trading License (Commercial License): A commercial license endows businesses with legal authority to conduct commercial activities in Saudi Arabia. It provides benefits like access to government services, protection of intellectual property rights, and the right to apply for contracts and tenders. It facilitates important import and export activities for foreign companies. 100% foreign ownership is permitted. 
    • Mining License: It allows foreign companies to take up mining activities;100% foreign ownership is permitted.
    • Professional License:  This license can be used by foreign professionals to practice in areas like law, taxation, consultancy, engineering, architecture, and advisory services. The 100% ownership of a professional company is permissible.
    • Entrepreneur License: This license is granted for taking up specific activities like marine consulting, engineering consulting, and mining consulting. To obtain this license there is a need for a local partner with at least 25% ownership and substantial experience in the field. The investor also must have at least 7 years of experience in the industry.

    Out of the above mentioned types of business licences the steps needed to obtain an Entrepreneur License in Saudi Arabia are mentioned below.

    Steps to get an Entrepreneur License in Saudi Arabia

    Acquiring an Entrepreneur License is carried out through a well-defined procedure. The key entrepreneur license procedures include the following;

    1. Eligibility Requirements: It is mandatory for foreign business owners to interact and work together with a Kafil (Local Saudi Sponsor). Entrepreneurs ought to meet some eligibility criteria before they can receive their licenses. These include the following:
      • They must be at least 21 years old in order to apply.
      • They must be registered with legal residency in Saudi Arabia either through an investor visa or a different type of residency permit.
      • Validation for their business idea, whether it takes the form of a patent, venture capital backing, or letters of support from government entities such as MISA or KAUST.
    1. Opportunities Assessment and Market Feasibility: The initial step in assessing an opportunity is submitting an opportunity application via OQAL, an investment network that links investors and entrepreneurs. After that, the application is sifted and filtered to determine its eligibility and basic merit potential. An initial assessment follows, where experts give detailed scrutiny of the business idea. Qualified applicants are invited to a committee interview, where they pitch for only 5 minutes and later get questions from the committee for up to 10 minutes. Finally, selected entrepreneurs participate in pitching events where they present their ideas to prospective investors.
    2. Submission of Business Plan: A business plan proposed by the entrepreneur indicating his strategy and market analysis and prospects with respect to revenue and other finances. The plan must be in line with the Vision 2030, such as tech-and eco-friendly start-ups.
    3. Financial Documentation: Proof of financial stability is required for an Entrepreneurial License. Applicants will have to provide proof that they are financially stable, showing enough available capital to start up and run the business.
    4. MISA Application: Entrepreneurs must file an application for a license under MISA, which looks at the company’s financial capability, business plan, and viability in the market. Entrepreneurs will receive a business license once the application is approved, allowing them to do legal business in Saudi Arabia.
    5. Registration and Compliance: Once an Entrepreneur License is issued, firms need to register with various government agencies and adhere to sector-specific regulations.
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    Why Helpline Group?

    With over 25 years of experience and 10 branches worldwide, Helpline Group is your premier partner for company formation in Saudi Arabia with expert business setup solutions. With a global reach, we have 300+ professionals to provide comprehensive guidance throughout the process. Count on us to provide fast and precise support, ensuring a smooth and successful journey for company formation in Saudi Arabia. Get in touch with us today!
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    Office no: 28, first floor, Raden Commercial center. Al muruj, Olaya street, Riyadh 12281, Saudi Arabia
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