Commercial (Trading) License in Saudi Arabia
Launch your import-export, wholesale, retail, or e‑commerce company with a Saudi Commercial License. Learn foreign and partnership structures, Saudization requirements, and AstroLabs’ setup roadmap.
Tap into Saudi Arabia’s Retail, Wholesale, and E‑Commerce Boom with your Commercial License in KSA
Foreign companies can secure a Commercial License (also known as a Trade License) from MISA and the Ministry of Commerce to legally conduct trading activities, import, export, wholesale, and retail. Whether dealing in physical goods or digital commerce, this license enables investors to access one of the Middle East’s fastest-growing markets. Set up your business with one of our expert consultants and streamline your company formation in Saudi Arabia.
License Information: Commercial (Trade) License in KSA
Types of Commercial Licenses: As for operating a trading company and acquiring a business license in Saudi Arabia, there are a few possible options to proceed with, their conditions are listed below:
100% Foreign‑Owned License:
1. The company should have three branches in different countries outside Saudi Arabia 2. SAR 30m capital needs to be injected/invested in the first year 3. SAR 150m capital needs to be invested in the next 5 years in the Saudi company
25% Saudi Partner License:
1. No need for branches 2. SAR 26.7m capital needs to be injected/invested in the first year and foreign capital shareholding cannot be less than SAR 20 million 3. No requirement to invest 150m SAR in the entity in 5 years
GCC-National Owned (100% GCC):
GCC nationals are treated like Saudis and don't require any of the above! -> 100% ownership of Saudi entity. Treated as Saudi entities with a capital threshold of SAR 50,000
Company Formation in Saudi Arabia: Step-by-Step Process
Step 1: Prepare Company Documents
Start by gathering essential documents, including:
- Certificate of Incorporation
- Memorandum and Articles of Association (MoA and AoA)
- Audited financial statements
- Board resolution to expand into Saudi Arabia
These documents must be legalized and translated into Arabic.
Step 2: Obtain MISA License
Apply for an investment license from the Ministry of Investment of Saudi Arabia (MISA). This step officially allows your foreign entity to operate in the Kingdom.
Step 3: Register with Government Entities
You'll need to complete registration with multiple Saudi governmental bodies:
- Ministry of Commerce (MoC) - for commercial registration
- Zakat, Tax and Customs Authority - for tax compliance
- General Organization for Social Insurance (GOSI)
- Chamber of Commerce
- Saudi Post - to obtain a national address
You’ll also need to choose a physical office space to meet the national address requirement.
Step 4: National Address Management:
Ensuring accurate updates and renewals on the SPL portal.
Step 5: Appoint a General Manager and Obtain an Iqama
Foreign companies in Saudi Arabia must register on core platforms to ensure legal compliance:
- Muqeem: employee sponsorship management
- Absher: government services portal
- Qiwa: workforce management
Mudad: wage protection and payroll compliance
Step 6: Open a Corporate Bank Account
Once your business is legally registered and operational, open a Saudi corporate bank account to handle transactions, payroll, and vendor payments.
Step 7: Hire and Issue Visas
Hire local employees in line with Saudi Arabia’s Saudization (Nitaqat) quota system. For international hires, you’ll need to issue work visas under the company’s sponsorship.
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 | | | | |