The New Investment List aims to encourage foreign investment in Saudi Arabia under Vision 2030. One important step on this journey is obtaining the correct business license from the Ministry of Investment (MISA). This license is essential for legally setting up and running your company in sectors ranging from services to manufacturing, mining, agriculture, and real estate.
In this article, we will talk about how to apply for a business license in Saudi Arabia. We will talk about the different types of business licenses in various sectors, the application process, and requirements.
Types of Business Licenses in Saudi Arabia
To operate a business in Saudi Arabia, you need to obtain the appropriate business license from MISA. The agency regulates license eligibility, capital requirements, ownership rules (including allowing up to 100% foreign ownership in many sectors), and license fees. Applications and renewals are processed mainly through MISA’s e-services platform.
There are 8 primary business license categories designed to cover a wide range of industries and business activities:
Professional License
| Purpose | Requirements |
|---|---|
| For specialized professional services such as legal, engineering, architecture, consulting, and other advisory roles. | – Proof of professional qualifications or certifications relevant to the service. – Registered office/address in Saudi Arabia. – Minimum capital typically starts at SAR 25,000.Full disclosure of shareholders and company structure. – Compliance with Saudi professional licensing regulations and membership in relevant professional bodies may be required. – Annual license fee payment starting at SAR 2,000 plus Ministry of Investment service fees. |
Entrepreneurial (Startup) License
| Purpose | Requirements |
|---|---|
| Designed to support startups and innovative businesses with reduced procedural hurdles. | – Proof of innovation or endorsement from an accredited incubator, accelerator, university, or government entity. – Business must be less than 5 years old. – Simplified capital requirements, often lower than other licenses. – Application via special MISA startup channels, with streamlined documentation. – Annual license fee typically SAR 2,000 for up to 5 years, with progressive service fees afterward. – Participation in government startup support programs may be mandatory. |
Service License
| Purpose | Requirements |
|---|---|
| Appropriate for companies offering services like IT, marketing, restaurants, hospitality, software development, and general consultancy. | – Minimum capital requirement normally starts from SAR 25,000. – Business premises or virtual office address within Saudi Arabia. – Detailed documentation on service scope and business activities. – Compliance with Saudization (employment of Saudi nationals) regulations. – Full foreign ownership is allowed in many cases. – Payment of annual license fees and Ministry service subscription fees. |
Trade (Commercial) License
| Purpose | Requirements |
|---|---|
| Enables trading activities including importing, exporting, wholesale, and retail operations. | – Minimum capital starts at SAR 100,000, but varies depending on the nature of trade. – Local warehouse or office presence required. – Trade name reservation and commercial register application. – Compliance with Saudi Customs regulations and import/export controls. – Partnership with local investors is optional but can reduce capital requirements. – Payment of license and subscription fees on an annual basis. |
Industrial License
| Purpose | Requirements |
|---|---|
| For companies involved in manufacturing, assembling, and industrial production. | – Significant minimum capital requirement, typically SAR 500,000 or more, depending on industry. – Approval through the Saudi Industrial Development Fund (SIDF) or Industrial Licensing Committee. – Compliance with environmental, health, and safety regulations. – Requirement to submit technical feasibility and environmental impact studies. – Physical industrial plant or factory location within Saudi Arabia. – Annual license fees plus Ministry of Investment subscriptions. |
Mining License
| Purpose | Requirements |
|---|---|
| For businesses focused on exploration and extraction of minerals, metals, and geological resources. | – Application through the Ministry of Industry and Mineral Resources. – Submission of exploration, feasibility, and environmental studies. – Industrial safety and sustainability compliance. – Capital adequacy proof tailored to mining scale. – Detailed project plan and land usage documentation. – Regular license and service fee payments. |
Agricultural License
| Purpose | Requirements |
|---|---|
| Covers farming, livestock production, aquaculture, and related agricultural activities. | – Land ownership or lease agreements supporting agricultural projects. – Compliance with Saudi Ministry of Environment, Water, and Agriculture regulations. – Minimum capital may vary but generally starts around SAR 100,000. – Proof of technical expertise or agricultural planning. – Licenses for specific agricultural products or livestock types may be required. – Annual license fees and service subscriptions to MISA. |
Real Estate License
| Purpose | Requirements |
|---|---|
| For property development, real estate investment, and large-scale construction projects. | – Minimum project investment thresholds, often exceeding SAR 30 million in land and construction costs. – Projects must be outside the holy cities Mecca and Medina. – Detailed project plans, environmental and feasibility studies. – Proof of land ownership or long-term lease rights.Compliance with the Saudi Real Estate Development Fund and municipal authorities. – Payment of license fees and subscriber fees annually. |
How to Start a Company in Saudi Arabia
To be eligible to apply for any of the business licenses above, you need to establish a legal entity in Saudi Arabia. This involves obtaining a trade name, obtaining a Commercial Registration (CR), and other registrations with government agencies.
- Choose Your Business Activity and Legal Structure: Decide on the type of activity (e.g., service, trade, industrial, real estate). Select an appropriate legal form such as LLC, joint stock company, branch, or sole proprietorship.
- Reserve Your Trade Name: Use the Ministry of Commerce (MoC) online portal to search and reserve a unique trade name. Ensure the name complies with Saudi naming regulations and does not infringe on trademarks. Obtain approval for the trade name, which is necessary before submitting your license application.
- Prepare the Required Documentation: this typically includes:
- Passport copies of shareholders and authorized representatives.
- The proposed Articles of Association (AoA) or bylaws (often notarized)
- Business plan outlining activity scope and operation details.
- Lease or ownership documents of your business premises.
- Proof of initial capital deposit.
- Sector-specific approvals or permits, if applicable.
- Submit Your Application: Apply via the MISA e-Services Portal or the Ministry of Commerce portal.: Upload required documents, fill out company details, and pay application fees. Some licenses may require an in-person interview or additional sector approvals. Emerhub can act as your representative in Saudi Arabia to help you submit your application if MISA requires an in-person interview.
- Obtain a Commercial Registration: The CR is the official document evidencing your company’s legal existence. Register your business address and finalize sector-specific licenses, if needed.
- Register with Relevant Authorities: to operate your business legally in Saudi Arabia, you need to register with the following government agencies:
- General Authority for Zakat and Tax (GAZT) for tax purposes.
- Register your employees with the General Organization for Social Insurance (GOSI).
- Ministry of Human Resources and Social Development, if applicable.
- Open a Corporate Bank Account: Submit your CR, MISA license, and relevant documents to open a corporate bank account. Bank due diligence processes may take 1 to 3 weeks.
To establish your company as seamlessly as possible, Emerhub can provide you with end-to-end support throughout the entire process. With our local market knowledge in emerging markets, we can assist you in establishing a legal entity in Saudi Arabia and obtaining the necessary licenses for operation. We can act as your representative and liaise with MISA and help ensure you have everything you need for a smooth application process.
Ready to expand into Saudi Arabia? Talk to our local experts with a free consultation by filling out the form below!
FAQs About Business License in Saudi Arabia
Business licenses in Saudi Arabia are primarily issued by the Ministry of Investment of Saudi Arabia (MISA). A MISA license authorizes foreign companies to legally enter and operate in the Saudi market across various sectors including services, trade, industrial activities, real estate, entrepreneurship, and mining.
Yes, you often need multiple licenses or permits to operate legally in Saudi Arabia. The primary business license from MISA or Ministry of Commerce (for local companies). Depending on the sector, additional permits may be required. For example, industrial companies need clearance from the Ministry of Industry and Mineral Resources and environmental permits.
Food-related businesses must obtain health and safety approvals from relevant authorities. Trading companies may require import/export licenses from customs. Real estate developers often need municipal permits and approvals from the Real Estate Development Fund. Compliance with labor, social insurance, tax registrations, and Saudization policies further requires registrations beyond the initial license.
Yes, startups can benefit from special licensing in Saudi Arabia through the Entrepreneurial (Startup) License. This license is tailored for innovative, tech-driven startups and offers several distinct advantages compared to regular business licenses.
Key benefits include:
- Access government-backed incentives, support programs, and premium residency options (if applicable).
- Reduced licensing fees, especially in the first few critical years.
- Flexibility to establish a company without large initial capital or the need for an existing parent company.
- Streamlined application process.
Yes, there are notable restrictions on real estate investment licenses in Saudi Arabia. Here are some restrictions to keep in mind:
You must obtain a real estate license which requires certified commercial registrations and financial statements, and adherence to transparency requirements.
- Ensure that your real estate projects meet a minimum investment threshold of SAR 30 million, which covers both land acquisition and construction costs.
- Foreign investment in real estate is restricted outside the holy cities of Mecca and Medina, which remain off-limits to foreign real estate ownership due to their religious significance.
- Under recent reforms introduced in 2025, you can own property in designated zones but it must be development-focused, with projects expected to be operational within five years of acquisition.
