Choosing the Right Commercial Activity License in Saudi Arabia
A blueprint for acquiring your commercial activity license (MISA license) in Saudi Arabia
Why You Need a Commercial License in Saudi Arabia
A commercial license (MISA license) is a mandatory legal authorization required to engage in commercial activities in the Kingdom and is the first crucial step toward setting up a business in Saudi Arabia.
Choosing the correct commercial license type ensures compliance with regulatory requirements, operational smoothness, and streamlined access to the Saudi market. The specific license varies depending on the sector.
How to Get a Commercial Licens: Step-by-Step Guide
To acquire a commercial license, companies must follow these steps.
1. Select the Right Commercial License
2. Decide on a Structure for Your Venture
3. Prepare the Required Documents
4. Submit an Online Application
5. Apply for the New Entity’s Name
6. Draft Articles of Association (AoA)
7. Apply for a Commercial Registration
Common Mistakes to Avoid When Applying for a Commercial License in Saudi Arabia
Incomplete or incorrect paperwork
Failure to meet Saudization quota and capital requirements
Selecting an improper license type for the commercial activity
Noncompliance with regulatory obligations concerning license renewals.
Types and Requirements of Commercial Activity Licenses in Saudi Arabia
Service License in Saudi Arabia (100% ownership permitted)
- Business established outside of KSA for more than 1 year (not a sole proprietorship)
- Minimum capital of SAR 25,000
Entrepreneurial License in Saudi Arabia
The startup should have:
- Either a patented idea, VC-backed, or a support letter from a government entity (MISA, PIF, CODE, KAUST, TDF)
- Endorsement letter & MISA pre-approval
Industrial License in Saudi Arabia
- Business established outside of KSA for more than 1 year (not a sole proprietorship)
- Minimum capital of SAR 25,000
Agricultural License in Saudi Arabia
- Business established outside of KSA for more than 1 year (not a sole proprietorship)
- Minimum capital of SAR 25,000
Real Estate License in Saudi Arabia
- This license is provided to foreign real estate development companies, provided that the total cost of the project is not less than SAR 30 million.
- Investment is established outside the borders of the cities of Mecca and Medina.
Trade License in Saudi Arabia
Foreign trading companies can pursue investment opportunities in Saudi through specific pathways.
100% foreign ownership:
- The company should have three branches in different countries outside Saudi Arabia
- SAR 30 million capital needs to be injected/invested in the first year
- SAR 170 million capital needs to be invested in the next 5 years in the Saudi company
25% Saudi partner:
- No need for branches
- SAR 26,666,666 capital needs to be injected/invested in the first year and foreign capital shareholding cannot be less than SAR 20 million
- No need to invest 170,000,000 SAR in the entity in 5 years
For 100% GCC-National Owned Companies:
GCC nationals enjoy the same rights as Saudi nationals; they don’t require any of the above.
- Minimum capital of SAR 50,000
Mining License in Saudi Arabia
- Business established outside of KSA for more than 1 year (not a sole proprietorship)
- Minimum capital of SAR 25,000
Professional License in Saudi Arabia
A MISA professional license requires companies in specific consulting activities focused on spaces like engineering, marine, and mining; prospective holders must have a minimum of a 25% local partner with years of experience in the field
Alternatively, for a company (in reference to engineering firms) to qualify for 100% foreign ownership, it must meet the following requirements:
- Four branches
- The share capital of one branch should be equal to SAR 10 million.
- 7+ years of experience
AstroLabs Advantage
| Offering | AstroLabs | Corporate Services Companies offering PRO & GRO | Law Firms | In-House |
|---|---|---|---|---|
| 40+ on-ground local team of experts |  |  | | |
| Government portal management and compliance support | | | | |
| Full management of your company licenses and certificates | | | | |
| Management of registered employees across the employee journey, from hiring to ongoing management | | | | |
| Full suite of support: PRO, GRO, HRs support and access to a pool of Saudi talent | | | | |
| National Address Registration with varied coworking and private office locations | | | | |
| Seamlessly manage GRO services online using a digital platform | | | | |
| Corporate bank account opening | | | | |
| Access to a community of 700+ high-growth businesses in Saudi Arabia | | | | |
| Extended media and exposure support through press releases, social media coverage and articles | | | | |
| Opportunity-matchmaking with potential partners in governmental entities and corporates | | | | |
| Access to global and regional events such as BIBAN, LEAP, Seamless, etc | | | | |