Obtaining a MISA Business License in KSA
How to obtain a business license in KSA from the Ministry of Investment of Saudi Arabia (MISA)
Join AstroLabs’ network of over 1500+ companies by obtaining your MISA License and set up your business in Saudi Arabia
There are 9 types of Saudi business licenses issued by the Ministry of Investment of Saudi Arabia (MISA - previously SAGIA). Learn more about each license, including service license, entrepreneur license, trade license, industrial license and more… To find out how to set up a business in KSA with no hassle.
Explore the main license types available to foreign investors under the Ministry of Investment (MISA)
Saudi Arabia’s Vision 2030 has opened the Kingdom to a broad range of foreign investors across key economic sectors. The Ministry of Investment offers several license types that allow international businesses to legally establish and operate in the Kingdom, either independently or in partnership with local entities. Below is an overview of the core MISA license categories available for investors.
1. Tourism License-
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 | | | | |
Explore the main license types available to foreign investors under the Ministry of Investment (MISA)
Saudi Arabia’s Vision 2030 has opened the Kingdom to a broad range of foreign investors across key economic sectors. The Ministry of Investment offers several license types that allow international businesses to legally establish and operate in the Kingdom, either independently or in partnership with local entities. Below is an overview of the core MISA license categories available for investors.
1. Tourism License- Before starting the tourism licensing process, it’s crucial to define a clear business model aligned with Saudi Arabia’s tourism strategy and regulatory framework. Identifying the specific segment you’ll serve, whether in religious, adventure, cultural, or luxury tourism, ensures you’re meeting market demand while remaining compliant with the Ministry of Tourism's requirements. Here are some examples.
- Religious Tourism: Supporting pilgrim services to Makkah and Madinah.
- Adventure and Experience-Based Travel: Delivering curated outdoor activities such as desert safaris, hiking, diving in the Red Sea, and many more...
- Cultural and Heritage Tourism: Showcasing historical sites and traditional Saudi experiences.
- Luxury and Eco-Tourism: Catering to premium travelers with bespoke, sustainable experiences.
2. Agriculture License - An agricultural business license in Saudi Arabia allows foreign companies to engage in agricultural activities in Saudi Arabia, such as farming and livestock production. Foreign companies can own 100% of an agricultural company in Saudi Arabia.
Requirements:
- Business established outside of KSA for more than 1 year (not a sole proprietorship)
- Minimum capital of SAR 25,000
3. Mining License- A mining license allows foreign companies to engage in mining activities in Saudi Arabia. Foreign companies can own 100% of a mining company in Saudi Arabia.
Requirements:
- Business established outside of KSA for more than 1 year (not a sole proprietorship)
- Minimum capital of SAR 25,000
4. Service License- A service license allows foreign companies to provide a wide range of services in Saudi Arabia, including restaurants, marketing agencies, IT services, Web or App development, and other general services. Foreign companies can own 100% of a service company in Saudi Arabia.
Requirements:
- Business established outside of KSA for more than 1 year (not a sole proprietorship)
- Minimum capital of SAR 25,000
5. Entrepreneurial License- An entrepreneurial license in KSA is specifically for startups and offers a number of benefits, such as streamlined regulations, reduced fees, and access to government support programs.
Requirements:
- Either a patented idea, VC-backed, or a support letter from a government entity (MISA, PIF, CODE, KAUST, TDF)
- Endorsement letter & MISA pre-approval
6. Industrial License- An industrial license allows foreign companies to establish manufacturing facilities in Saudi Arabia. Foreign companies can own 100% of an industrial company in Saudi Arabia.
Requirements:
- Business established outside of KSA for more than 1 year (not a sole proprietorship)
- Minimum capital of SAR 25,000
7. Real Estate License- This service is provided to foreign real estate development companies in case the total cost of the project, in terms of both land and construction is not less than 30 million Saudi riyals in terms of land and construction, and the investment is established outside the borders of the cities of Mecca and Medina. We recommend contacting MISA directly for details about this business license requirement in Saudi Arabia.
8. Commercial(Trading) License - A Saudi trade or trading license allows foreign companies to import and export goods in Saudi Arabia. Foreign companies can own 100% of a trading company in Saudi Arabia.
Requirements for Foreign Investment
As for operating a trading company and acquiring a business license in Saudi Arabia, there are a few possible options we can proceed with, their conditions are listed below:
100% foreign ownership
- The company should have three branches in different countries outside Saudi Arabia
- SAR 30m capital needs to be injected/invested in the first year
- SAR 170m capital needs to be invested in the next 5 years in the Saudi company
25% Saudi partner
- No need for branches
- SAR 26.7m 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 150m SAR in the entity in 5 years
For 100% GCC-National Owned Companies:GCC nationals are treated like Saudis and don't require any of the above! -> 100% ownership of Saudi entity
- Minimum capital of SAR 50,000
9. Professional License- A professional business license allows foreign professionals to practice their profession (law, taxation, consultancy, engineering, architecture, and other advisory services) in Saudi Arabia. Foreign professionals can own 100% of a professional company in Saudi Arabia.
Requirements:
A MISA Professional License is for specific activities usually around specific consulting activities such as engineering consulting, marine consulting, and mining consulting. Must have a minimum of a 25% local partner with years of experience in the field.Alternatively, your company (Only Engineering Firms) needs to meet the following requirements for 100% Foreign Ownership.
- Four Branches
- Share capital of one branch should be equal to 10 Million SAR
- 7+ Years of Experience