The Commercial License
Saudi Arabia’s dynamic economy welcomes global entrepreneurs. To operate legally, you’ll need a commercial license, which serves as your official permit for business activities in the Kingdom.
Who Needs a Commercial License?
Any entity, foreign or domestic, intending to engage in commercial activities within Saudi Arabia requires a commercial license. This encompasses a wide range of business endeavors, including:
- Trading: Importing, exporting, and wholesaling of goods.
- Services: Providing professional, technical, or consulting services.
- Manufacturing: Establishing factories or workshops for production.
- Retail: Operating shops, stores, or online businesses.
- Restaurants & Cafes: Setting up food and beverage establishments.
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Types of Commercial Licenses
Depending on your business structure and activities, you can choose from various commercial licenses
Commercial License
Ideal for most businesses, for import, export, trade, and services.
Industrial License
Necessary for setting up factories or workshops for industrial production.
Craft License
Issued to businesses involved in traditional crafts and artisanal production.
Branch License
Required to establish a branch office of a foreign company in Saudi Arabia.
The Licensing Process
The Ministry of Investment (MISA) oversees the commercial licensing process. While specifics may differ based on your chosen license type, the general steps involve
Company Registration
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Establishing a legal entity in Saudi Arabia, such as a Limited Liability Company (LLC).
License Selection
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Identifying the appropriate commercial license type for your business activities.
Documentation
3
Submitting required documents, including business plans, feasibility studies, and ownership information.
Fees & Approvals
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Paying processing fees and obtaining necessary approvals from relevant authorities.
License Issuance
5
Receiving your official commercial license after successful completion of the process.
