Entrepreneurial License in Saudi Arabia
Learn how to set up your innovation-driven startup in Saudi Arabia with the Entrepreneurial License. With full foreign ownership, minimal capital, and fast-track incorporation with AstroLabs.
Entrepreneurial License in Saudi Arabia - Essential Information
The Entrepreneurial License is Saudi Arabia’s streamlined market entry route for founders and startups ready to scale in the region. Issued by the Ministry of Investment (MISA), this license offers 100% foreign ownership, without the capital intensity, complex audits, or corporate backing required by traditional business licenses. It’s tailor-made for innovation-led businesses, making it easier for tech startups, research-driven ventures, and VC-backed companies to establish and set up a business in the Kingdom.
Incentives for Entrepreneurial License Holders in KSA
Saudi Arabia is investing heavily in creating a thriving startup ecosystem, and the Entrepreneurial License is a key part of that strategy. As a holder of this license, your startup may gain access to a wide range of financial, operational, and ecosystem incentives designed to accelerate your growth.
1. Government-Backed Support Programs
Eligible startups can tap into programs run by: Monsha’at (SME Authority): Access funding, mentorship, and specialized advisory services. Public Investment Fund (PIF) and affiliated accelerators: Strategic partnerships and co-investment opportunities.
2. Reduced Capital & Compliance Requirements
Unlike traditional licenses, this license eliminates the need for: 1. Corporate shareholders or local partners 2. High paid-up capital 3. Yearly audits or complex reporting
3. Access to Grants & Funding
Qualifying startups may receive: 1. Government-backed seed funding or matching grants 2. Equity-free grants from local accelerators 3. Preferential eligibility for VC programs and competitions
4. Subsidized Business Services
Entrepreneurial License holders can benefit from: 1. Reduced-cost office space in government-supported tech parks and co-working hubs 2. Discounted banking and telecom services through startup partnerships
5. Preferential Access to Tenders & Pilots
1. Early-stage access to government innovation pilots 2. Priority participation in smart city, healthtech, and digital transformation projects 3. Eligibility to join government-led procurement programs targeting startups
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 | | | | |