Business Setup in Saudi Arabia through the Ministry of Investment:
For foreign companies wishing to establish and register a business in Saudi Arabia through the Ministry of Investment, this has become one of the easiest and fastest ways to set up a company in Saudi Arabia. This is due to the updates made to the Ministry of Investment’s regulations in 2017, which facilitated the entry of foreign investors by enabling them to obtain a MISA license.
Foreign companies seeking a 100% foreign-owned commercial license in Saudi Arabia must submit certain documents that comply with the requirements based on the type of license requested. For instance, a service license or industrial license in Saudi Arabia requires the following:
- A commercial registration valid for one year, attested by the Saudi Embassy or Apostille.
- The company’s Articles of Association, attested by the Saudi Embassy or Apostille.
- The company’s audit reports (total income is not a determining factor), attested by the Saudi Embassy or Apostille.
A service license allows businesses to engage in commercial activities providing services within Saudi Arabia, such as contracting, Information Technology, education, and healthcare services. However, the investor is not permitted to engage in retail, wholesale, or trading activities unless they obtain a commercial license from the Ministry of Investment, which has different requirements than the service license.
Commercial License in Saudi Arabia:
A commercial license allows the investor to engage in trade, retail, wholesale, or e-commerce activities. It also enables the foreign company to import, export, and issue product certificates or register them with accredited entities in Saudi Arabia, such as the Saudi Food and Drug Authority (SFDA). To obtain a commercial license, the following conditions must be met:
- Three commercial registrations from three different countries, attested by the Saudi Embassy or Apostille.
- The parent company’s Articles of Association, attested by the Saudi Embassy or Apostille.
- The parent company’s audit reports, attested by the Saudi Embassy or Apostille.
- An investment of 30 million SAR for the first year if the company is 100% foreign-owned.
- An investment of 300 million SAR for the first five years, including the first year.
It is important to note that the required investment for the first year, amounting to 30 million SAR, means that the company’s account activity, assets, or goods must total or exceed 30 million SAR during the first year. It does not mean that this amount must be deposited into the company’s bank account in Saudi Arabia. Similarly, for the first five years, the same principle applies: the account activity, goods, or assets must total 300 million SAR.
Real Estate License in Saudi Arabia:
The real estate license in Saudi Arabia allows foreign investors to establish a company or branch in the Kingdom to engage in real estate investment activities. Foreign investors can Setup a company in Saudi Arabia without the need for a Saudi partner in the real estate sector, provided they meet the following conditions:
- A commercial registration valid for one year, attested by the Saudi Embassy or Apostille.
- The company’s Articles of Association, attested by the Saudi Embassy or Apostille.
- The company’s audit reports (total income is not a determining factor), attested by the Saudi Embassy or Apostille.
- The company’s capital for the project or entry into Saudi Arabia must be 30 million SAR, including the value of the land or property, as well as construction or finishing costs, or other related expenses.
Industrial License in Saudi Arabia:
This license is designated for companies wishing to Setup a factory in Saudi Arabia and engage in industrial activities. It is similar to the service license in terms of requirements, conditions, and regulations. Foreign investors can enter Saudi Arabia and establish an industrial company without the need for a Saudi partner. Regarding import and export for the industrial sector, particularly machinery and equipment for the foreign company in Saudi Arabia, no additional fees or taxes apply, except for a 5% customs duty. Additionally, the owner of an industrial company in Saudi Arabia is permitted to sell its products within and outside the Kingdom if the product is manufactured by their company in Saudi Arabia.
Professional or Consulting License in Saudi Arabia:
This license is intended for companies offering professional and consultation services, such as law, accounting, legal services, administrative or industrial consulting, or mining consultancy in Saudi Arabia. It is linked to the professional license, which requires a Saudi partner holding the same license in the same field or business activity the foreign investor wishes to invest in. The conditions are as follows:
- A commercial registration valid for one year, attested by the Saudi Embassy or Apostille.
- The company’s Articles of Association, attested by the Saudi Embassy or Apostille.
- The company’s financial statements (total income is not a determining factor), attested by the Saudi Embassy or Apostille.
- A Saudi partner with a minimum ownership share of 25% in the company.
- The Saudi partner must hold a license in the same professional field.
Consultancy License for Engineering Offices in Saudi Arabia:
This activity is permitted for foreign investors wishing to establish a consultancy firm in the field of engineering in Saudi Arabia. Foreign companies can obtain this license without the need for a Saudi partner. There are specific conditions that a foreign company must meet in order to obtain an engineering consultancy license from the Ministry of Investment in Saudi Arabia. These conditions are as follows:
- The company must have four commercial registrations in four different countries in the same field, attested by the Saudi Embassy or Apostille.
- The company’s financial statements for the most recent year, attested by the Saudi Embassy or Apostille.
At Motaded, we help businesses thrive in Saudi Arabia. Whether you’re a local entrepreneur or a foreign investor, we’re here to guide you. From launching a sole establishment to navigating LLC company formation or company registration, we make it easy.
What We Do
Navigating the business setup in Saudi Arabia can be complex, but we simplify it. We handle the details so you can focus on growth. Our expertise cuts through the red tape, making your setup process smooth and stress-free.
Our Services – Tailored for Your Success in Saudi Arabia
- Comprehensive Business Setup Solutions: We handle everything—from understanding capital requirements to managing the business setup process in KSA.
- Market Entry Strategies: Tailored plans to help you enter the Saudi market confidently. Our experts provide tailored strategies for market entry into the Kingdom of Saudi Arabia, ensuring a smooth and successful launch of your operations.
- Licenses and Permits: We help you secure all necessary business licenses in Saudi Arabia, including commercial, industrial, and consulting licenses, customized to suit your business needs.
- Support for Foreign Investors: Complete support for foreign investors, from company registration to obtaining investment licenses.
- PRO and GRO Services: Leave the paperwork to us. Our PRO and GRO services manage all regulatory and administrative tasks, including visa processing and ensuring compliance with Saudi government regulations.
- Operational Support: From opening a bank account in Saudi Arabia to handling tax compliance, we provide the support you need to run your business seamlessly.
Beneficiary group
- business setup in Saudi Arabia depends primarily on what business activity you want to invest in in Saudi Arabia, so you must specify the business activity you intend to open in detail. For example, will it be a commercial, service, production, consulting, or other company? You can learn about the business activity from here.
- as well as benefiting from our time and experience that has extended to 12 years