Service license in KSA | Fees, Rules & requirements

Planning to start a service business in Saudi Arabia? Learn about service license in KSA, including key rules, legal requirements, approvals, and compliance procedures businesses must follow to operate legally and successfully in the Kingdom’s growing and competitive market.

Introdcution

Saudi Arabia’s business landscape is rapidly evolving, creating new opportunities for local and international companies. To legally operate service-based activities in the Kingdom of Saudi Arabia (KSA), businesses must obtain the appropriate service license and comply with regulatory requirements set by government authorities. These licenses ensure that companies meet legal, operational, and industry-specific standards before offering services in the market. From company registration and foreign investment approvals to documentation and compliance obligations, understanding the rules surrounding service licenses is essential for smooth business operations. This guide explains the key requirements, regulations, and processes involved in obtaining a service license in KSA.

License granting to invest in the Kingdom of Saudi Arabia and procedures of amendment requests of existing licenses are based on a fixed base that Saudi Arabia is seeking to attract and enable serious investments that contribute positively to the development of the national economy and sustainable development, including the following:

• Transfer and localization of technical knowledge to the requests of the license in the industrial activities
• Diversifying sources of income in the Kingdom of Saudi Arabia
• Increase exports
• The development of the Saudi manpower
• Enhance the competitiveness of the economy and its products in the local and global markets
• Balanced development between the administrative regions of the Kingdom

Service License in KSA

Service activity license comprises the following activities: ( Constructions, Administrative Investment, Information Technology, Tourism, Training, Health, Insurance and Re-Insurance, Education, Advertising and Media, Logistic Services, Organizing Exhibitions, Catering and Food Services, Financial Services, Aviation and Handling Services, etc.). This segment covers various service licenses. To know more about industrial licenses, read our article here.

Documentations

• A copy of the commercial registration of the shareholding partner, certified by the Saudi Embassy
• Option 2 – A copy of the national identity, if one of the partners is a natural person holding the nationality of one of the GCC countries
• Option 3 – A copy of the national identity if one of the partners is holding Saudi nationality, and a statement issued by the “ABSHAR” System to prove the profession
• Option 4 – A copy of the commercial registration for Saudi companies
• Financial statements of the last financial year of the applicant foreign company, certified by the Saudi Embassy.

Rules and Restrictions

• Consistency between the total percentage of the Saudi (shareholder/ shareholders) and the capital according to the financial limits set forth for the type of activity.
• Premium residence holders are exempt from the above documents.
• In case one of the partners was previously licensed by the Ministry of Investment, it must be clarified when filling in the partners’ data while submitting the electronic application.
• In case the licensed business is related to construction, the company should not practice any activity related to the provision of consultations of any kind.
  
  In case the license is a health activity, the following shall be required:
• The legal entity must be a company
• The health facility must have accreditation from a recognized health organization
• Have at least three years of experience in the country of the establishment

Service License Fees

• Payment of a license fee of two thousand (2000) Saudi Riyals annually for 5 years as a maximum
• Payment of ten thousand (10,000) Riyals as a subscription for the first year to obtain services from the Ministry of Investment’s investor relations centres. Afterwards, the fees are 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 has to apply again

Renewal of License – Rules and Restrictions

• Investment entities requesting renewal shall be committed to updating and adopt its data at the Ministry of Investment annually
• The entity shall review the requirements of the license in section no. (03.00) of this manual before applying for renewal
• Before applying for the service, the entity must ensure that the Certificate of Zakat and Income is valid

Fees for Renewal of License

• Payment of a license fee of two thousand (2000) Saudi Riyals annually for 5 years as maximum.
• Payment of ten thousand (10,000) Riyals as a subscription for the first year to obtain services from the Ministry of Investment’s investor relations centres.
• 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 has to apply again
• A valid zakat certificate must be attached in case a technical problem occurs while submitting the application.

License Cancellation by the Ministry of Investment

Entities for which the Ministry of Investment has issued a cancellation resolution is entitled to implement the decision to cancel by:

• Submit a renewal application for liquidation purposes, as per Service No (9.02) of this Manual.
• Finalize the status of workers registered under the entity, and close the entity’s file with the
  Ministry of Labour.
• Settle outstanding dues with the General Organization for Social Insurance (GOSI) and close the
  entity’s file.
• Settle outstanding dues of the department of Zakat and Income Tax and close the entity’s file.
• Cancellation of the municipality license.
• Cancellation of licenses issued by other government agencies (if any).
• Cancellation of the commercial registration.
• Cancellation of the investor(s) residence permit(s), and perform final exit from the Kingdom.

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