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:
- 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.
- Financial statements of the last financial year of the applicant company and certified by the Saudi Embassy.
Rules and Restrictions:
- The existence of a Saudi shareholder in the investment license with a share of not less than 25% of the company.
- Premium residence holders are exempted from the above documents.
- 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:
- Payment of license fee of two thousand (2000) Saudi Riyals annual for 5 years as maximum.
- 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).
- 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:
- A copy of the commercial register in at least in (3) regional or international markets of the participating entity authenticated by the Saudi Embassy.
- Financial statements of the last financial year of the applicant company and certified by the Saudi Embassy.
Rules and Requirements:
Service Fees:
- Payment of license fee of two thousand (2000) Saudi Riyals annual for 5 years as maximum.
- 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).
- 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
Arnifi is digital first Corporate service provider helping companies enter the Middle East region, starting with UAE and Saudi Arabia markets. Founded and backed by professionals from Amazon, Souq and other large companies operating in KSA – the team understands what it takes to succeed as a startup in both UAE and Saudi Arabian markets, apart from going through the setup process multiple times.
Arnifi will provide a truly digital experience to entry and scale up of companies both UAE and Saudi Arabia. The Arnifi promise is simple, yet revolutionary, use technology and a great team to provide transparency, efficiency and great customer experience in the whole process.
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