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All you need to know about Iqama
Saudi Arabia’s Iqama, also known as a residence permit, is an essential document for expatriates residing and working in the Kingdom. Issued by the Ministry of Interior, it serves as the official form of identification and enables access to a wide range of services and legal rights. In this guide, J K Management Consultancy walks you through the essentials of Iqama from its purpose and benefits to its connection with business setup, validity, cost, and transfer rules.
What is Iqama?
Iqama is a mandatory residence permit issued to expatriates in Saudi Arabia who enter on work or dependent visas. This card is required for legal residency and is essential for carrying out day-to-day activities such as:
- Opening a bank account
- Applying for a driver’s license
- Getting a mobile SIM card
- Accessing healthcare and other public services
Iqama Types
For labor-class workers.
For individuals holding a professional degree.
For household helpers, like drivers, maids etc.
For the families of expats.
For foreign government employees.
For individuals intending to do business in Saudi Arabia.
premium residence.
How is Iqama related to business setup?
For foreign investors or entrepreneurs, Iqama is a critical requirement in the process of starting a business in Saudi Arabia. Known as Business Iqama, this permit allows foreign nationals to manage and operate their businesses within the Kingdom legally.
If you’re planning to establish a company, you’ll need to appoint a General Manager who must obtain their Iqama. Without it, you cannot open a company bank account or fulfill regulatory procedures. The appointed manager must travel to Saudi Arabia to complete the Iqama process in person.
How do companies issue Iqama to employees?
Employers are responsible for initiating the Iqama process for their employees. If an employee leaves the country temporarily, their Iqama should be securely held by the employer. For final exit visas, the original Iqama must be submitted along with the exit visa application to the authorities.
In case of loss or damage, a replacement Iqama can be issued and will carry the same expiration date as the original.
Iqama Issuance – Key Requirements
To apply for Iqama, several documents and conditions must be fulfilled by both the employer and employee. These may include:
- A valid employment contract
- A medical fitness certificate
- Proof of health insurance
- A valid work visa or permit
Coordination with the Ministry of Interior is necessary, and staying updated with policy changes is crucial for a smooth application.
Validity and Renewal of Iqama
An Iqama is typically valid for one year and must be renewed annually. Renewal should be done at least three days before expiry. Failure to renew on time leads to penalties:
- First-time delay: fine equal to renewal fee
- Second-time delay: fine doubles
- Third-time delay: possible deportation
If the Iqama of a company’s general manager is not renewed, it may result in the suspension of government services and freezing of the company’s bank accounts.
Iqama also extends coverage to the employee’s spouse and minor children. However, children above 18 must apply for their own visas and pay the necessary fees.
Iqama Cost in Saudi Arabia
The cost of Iqama can vary depending on the type of permit, profession, and other factors. It’s advisable to stay updated with the latest fee structures by consulting reliable sources or reaching out to J K Management Consultancy for expert support.
Iqama Transfer Guidelines
An Iqama transfer becomes necessary when an employee changes employers. This process requires approval from both the existing and new sponsors and is subject to several government regulations. The ease of transfer largely depends on your current employer’s policies.
Need Help with Iqama Services or Business Setup in Saudi Arabia?
Whether you’re an entrepreneur or a working professional, our team at J K Management Consultancy is here to guide you through every step of the Iqama process.
