Obtaining a business license and necessary permits in Saudi Arabia is a critical step for both local and foreign entrepreneurs. The Kingdom has streamlined many of its processes as part of Vision 2030 to encourage investment and economic diversification. Here’s an overview of how business licensing and permits work in Saudi Arabia: For more information please visit Business setup in saudi arabia

🔹 1. Types of Business Entities

Before applying for licenses, choose a legal structure. Common options include:

  • Sole Proprietorship
  • Limited Liability Company (LLC)
  • Joint Stock Company
  • Branch of a Foreign Company

🔹 2. Key Authorities Involved

  1. Ministry of Commerce (MoC) – Company name reservation, registration, and Articles of Association.
  2. Saudi Arabian General Investment Authority (SAGIA / now MISA) – Required for foreign investors to get an investment license.
  3. Zakat, Tax and Customs Authority (ZATCA) – Tax registration.
  4. Municipalities (e.g., Baladiyah) – Commercial permits and location approvals.
  5. General Organization for Social Insurance (GOSI) – For employee registration.
  6. Chamber of Commerce – Membership registration for business operations.

🔹 3. Steps to Get a Business License

✅ Step 1: Reserve a Company Name

  • Done online via the Ministry of Commerce portal.
  • The name must comply with naming conventions and not already be registered.

✅ Step 2: Obtain a Foreign Investment License (if applicable)

  • Apply via MISA (Ministry of Investment).
  • Requirements: business plan, financial statements, passport copies, etc.

✅ Step 3: Draft and Notarize the Articles of Association

  • You can use MoC’s electronic system for standard templates.

✅ Step 4: Register the Company

  • Finalize registration through the MoC portal.
  • You will receive a Commercial Registration (CR).

✅ Step 5: Register with Government Agencies

  • ZATCA – for tax purposes (VAT, corporate tax if foreign-owned).
  • GOSI – to cover employees with social insurance.
  • Municipality – for physical location approval and commercial permit (license to operate premises).

✅ Step 6: Chamber of Commerce Membership

  • Register with the local Chamber of Commerce to start business activities.

🔹 4. Sector-Specific Permits

Depending on your industry, you may also need licenses from:

  • Saudi Food and Drug Authority (SFDA) – for food, drugs, cosmetics.
  • Communications and Information Technology Commission (CITC) – for telecom and IT.
  • Saudi Central Bank (SAMA) – for financial services.
  • Ministry of Tourism, Ministry of Health, Ministry of Education, etc.

🔹 5. Post-License Requirements

  • Open a bank account.
  • Set up office space.
  • Hire employees and register them with GOSI.
  • Maintain bookkeeping and annual reporting.

🔹 6. Digital Platforms to Use

  • MCI.gov.sa (Ministry of Commerce)
  • InvestSaudi.sa (MISA)
  • Balady.gov.sa (Municipal permits)
  • Zatca.gov.sa
  • Gosi.gov.sa

🔹 7. Processing Time & Costs

  • Time: 2–6 weeks (faster for local businesses).
  • Cost: Varies based on business type, location, and size. Expect to pay for CR, municipal license, chamber fees, and special permits if applicable.