What is a Commercial license?

Commercial license considers the importance of commercial activities in the Kingdom of Saudi Arabia and the pursuit the Kingdom to facilitate the entry of foreign entities to perform an activity in the wholesale trade and retail trade in the Saudi market.

Commercial license with Saudi shareholder

This Service is provided to foreign entities that are interested in the activity of wholesale and retail trade in the Kingdom of Saudi Arabia with a Saudi shareholder.

Documentations:

1. A copy of the commercial registration of the shareholding partner certified by the Saudi Embassy or a copy of the national identity, if one of the partners is a natural person holding the nationality of one of the GCC countries, or a copy of the national identity if one of the partners is holding the Saudi nationality and a statement issued by “ABSHAR” System to prove the profession; or a copy of the commercial registration for Saudi companies.
2. Financial statements of the last financial year of the applicant company and certified by the Saudi Embassy.

Rules and Restrictions:

1. The existence of a Saudi shareholder in the investment license with a share of not less than 25% of the company.
2. Premium residence holders are exempted from the above documents.
3. In case that one of the partners was previously licensed by Ministry of Investment, it must be clarified when filling in the partners’ data while submitting the electronic application.

Service Fees:

1. Payment of license fee of two thousand (2000) Saudi Riyals annual for 5 years as maximum.
2. Payment of ten thousand (10,000) Riyals as subscription for the first year to obtain services from Ministry of Investment investors’ relations centers. Afterward, the fees is applied as subscription fees for services in the following years (SR 60,000).
3. Service fees shall be paid within (60) days from the date of bill issuance. In case of the payment’s delay within the identified period, the service will be cancelled and the applicant have to apply again.

100% foreign commercial license

This Service is provided to 100% foreign entities that are interested in the activity of wholesale and retail trade and e-commerce in the Kingdom of Saudi Arabia.

Documentations:

1. A copy of the commercial register in at least in (3) regional or international markets of the participating entity authenticated by the Saudi Embassy.
2. Financial statements of the last financial year of the applicant company and certified by the Saudi Embassy.

Rules and Requirements:

Service Fees:

1. Payment of license fee of two thousand (2000) Saudi Riyals annual for 5 years as maximum.
2. Payment of ten thousand (10,000) Riyals as subscription for the first year to obtain services from Ministry of Investment investors’ relations centers. Afterward, the fees is applied as subscription fees for services in the following years (SR 60,000).
3. Service fees shall be paid within (60) days from the date of bill issuance. In case of the payment’s delay within the identified period, the service will be cancelled and the applicant have to apply again.

Next reading: Temporary license & its performance for foreign companies in KSA

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