License for Scientific and technical office its requirements in KSA

Overview:

Obtaining a Scientific and Technical Office (STO) License in Saudi Arabia (KSA) is essential for foreign companies that wish to provide technical support, research, and development services without engaging in direct commercial activities. The Saudi Arabian General Investment Authority (SAGIA, now MISA) oversees the licensing process, ensuring compliance with local regulations.

To acquire an STO license, businesses must meet several requirements, including establishing a legal entity in KSA, securing approval from relevant authorities, and demonstrating technical expertise in their respective fields. Additional prerequisites include appointing a local representative, submitting financial statements, and adhering to Saudization policies. The license facilitates knowledge transfer, strengthens industry standards, and supports Saudi Vision 2030’s focus on technological advancement.

This guide explores the eligibility criteria, application procedures, and key compliance measures for obtaining an STO license in KSA, helping businesses navigate the regulatory landscape effectively.

Scientific and Technical office License:

This service is provided to foreign companies that have a Saudi agent distributing the company’s products in the Kingdom, and such companies that wish to open an office to provide scientific and technical services to agents, distributors and consumers of their products.

Documentations:

1. A copy of the commercial register of the participating entity authenticated by Saudi Embassy .
2. A copy of the agency authorizing the agent or distributor .

Rules and Restrictions:

1. The office shall perform market feasibility studies on the type of the company’s activity, and prepare reports of this study for the main center. The office shall submit an annual summary of its activities to Ministry of Investment.
2. The office is prohibited from performing any contracts or commercial activities or investments in the Kingdom, directly or indirectly, while it is also prohibited from earning any fees for training Saudi technicians.
3. Ministry of Investment has the right to revoke the license or not to renew it whenever it deems that the office’s role is beyond the authorized purpose.

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 the 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 failure to make payment within such identified period, the service will be cancelled and the applicant have to apply again.

Next reading: Can one take multiple business activities in the same trade license in KSA?

Conclusion

Obtaining a Scientific and Technical Office (STO) License in Saudi Arabia is a strategic move for foreign companies looking to provide technical support and research services without direct commercial operations. The licensing process, overseen by MISA (formerly SAGIA), ensures regulatory compliance while enabling businesses to contribute to the Kingdom’s technological and industrial growth.

By fulfilling key requirements such as legal entity registration, regulatory approvals, and Saudization compliance, companies can establish a strong presence in KSA’s evolving market. The STO license not only facilitates knowledge transfer and innovation but also aligns with Saudi Vision 2030, which promotes economic diversification and technological advancement.

About Arnifi

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.
Check out at – www.Arnifi.com for more details.