Entrepreneur License in KSA – Process & Benefits

Overview

The term “entrepreneur” has become one of the most talked-about words on the internet in recent years. Many have business ideas, but true entrepreneurs take risks and lay the groundwork. For such individuals, recognition by the authorities is crucial to boost their business ventures. The Entrepreneur License serves as a powerful tool to support investment and encourage foreign investors to expand their businesses. 

Holding an Entrepreneur license in KSA unlocks vast opportunities for investors to grow and scale their businesses. One of the key visions of Saudi Arabia’s Vision 2030 is to promote entrepreneur licenses, particularly for individuals looking to establish small and medium-sized enterprises (SMEs).  As you read further, you will learn about the eligibility criteria, application costs, and the numerous benefits of holding an Entrepreneur License in Saudi Arabia.

Eligibility Criteria to Obtain Entrepreneur License in KSA

There is a list of criteria that an applicant has to meet to obtain the license: 

• The person should be a resident of Saudi Arabia.
• If the entrepreneur is a foreigner, it is important to have a local investor.
• The person has to submit the previous license (if any) as a part of the documentation.
• An endorsement from any trusted entity or licensing authority is mandatory – e.g., a venture capital firm.
• The entrepreneur should have a supporting investor through the Ministry of Investment if they don’t have one other investor from the ministry interest in your business concept will be the backup.
• The applicant should be a minimum of 21 years.
• A detailed business plan and proposal should be prepared for a smooth application process.

How to Apply for an Entrepreneur License?

Obtaining an Entrepreneur License in Saudi Arabia is a straightforward process that can be completed online:  

• Access the “MISA” Platform – Visit this government platform to electronically submit your application.  
• Select a Business Activity – Choose the activity you wish to operate from the list of available options.  
• Choose a Unique Trade Name – Pick a trade name that complies with the new trade name regulations.  
• Make the Required Payment – After applying, pay the determined licensing fees.  
• Receive Your License – Upon approval, your license will be issued electronically, allowing you to begin your business operations immediately.

Documents Required

These documents should be kept handy to smoothly complete the application process:

• Copy of the national ID or residency permit.
• A clear and precise business plan outlining the project’s objectives.
• Approval of the trade name.
• A social insurance certificate (if required).
• A health certificate for projects related to food and health.

Cost Breakdown for Obtaining an Entrepreneur License in KSA

You must pay 2,000 SAR annually to obtain the Entrepreneur License. Additionally, you will need to pay a service fee of 10,000 SAR per year for the services offered by the Investor Relations Center at the Ministry of Investment, starting from the fourth year. After the fifth year, the authorities will reclassify your establishment and include the financial service fees as part of a standard license. You must complete the payment for the Entrepreneur License within 60 days of the invoice issuance date. If you fail to make the payment within this period, the authorities will cancel your license, and you will need to submit a new application.

Benefits of holding an Entrepreneur License in KSA

• No Need for Large Initial Capital or Previous Commercial Experience: Entrepreneurs can launch their businesses without requiring a significant upfront investment or a history of commercial activity.    
• Access to Funding Opportunities: Saudi Arabia offers various financial programs, including government grants and low-interest loans, to help entrepreneurs achieve rapid growth.  
• Support from Business Incubators and Accelerators: Entrepreneurs can take advantage of mentorship, networking, and industry knowledge through business incubators and accelerators.  
• Enhanced Credibility and Trust: Holding an official license boosts the credibility of the business, improving the likelihood of attracting clients and potential partners. 

Arnifi – Your Trusted Partner for Obtaining an Entrepreneurial License and Seamless Business Setup in KSA

Congratulations on making it this far! By now, you surely see the incredible potential and future of setting up a business in KSA, along with the promising profits that await you. Arnifi is excited to partner with you on this journey, helping you navigate the entire process—from securing your entrepreneurial license to managing your business setup and handling licensing renewals. Our dedicated and experienced team is here to guide you through every legal step, ensuring your success at every stage. Let’s build your business in KSA together!
For more info get in touch!

FAQs

What is the use Entrepreneur License in Saudi Arabia?
It is a license that supports investment and helps foreign and local entrepreneurs to establish and grow their businesses.

Who is eligible to apply for the Entrepreneur License?
Residents of Saudi Arabia or foreign entrepreneurs with a local investor and a detailed business plan can apply.

How much does the Entrepreneur License cost?
The annual fee is 2,000 SAR, with an additional service fee of 10,000 SAR starting from the fourth year.

What documents are needed for the application?
A national ID or residency permit, a business plan, trade name approval, and other supporting certificates may be required.

What are the benefits of holding the Entrepreneur License?
Tax advantages, funding opportunities, business support, and enhanced credibility are key benefits.