Knowing how to get business license in Saudi Arabia is a must if you want to start a business in the country.The process is simple but it can take you a lot of time if you do not know it or have some doubts.
In this article, we will show you how to start a business in the country and obtain a business license. Let us see:
1. How to start business in Saudi Arabia for foreigners

Starting a business involves knowing how to get business license in Saudi Arabia in addition to other important steps. Thus, knowing these steps is as vital as having the right assistance to make the process simple. The steps to start your business in Saudi Arabia are detailed below:
1.1 Choose your business structure
The first of how to start a business in Saudi Arabia is to choose what type of business and its activities. Thus, you will know if it is better to install it on the mainland or in free economic zones. Also, this will let you know the type of license and the legal entity you need.
In Saudi Arabia, you can establish different types of businesses according to the guidelines of the authorities. The entities for which you can choose are the following:
- Joint Liability Company
- Limited Partnership Company
- Joint Venture
- Joint Stock Company
- Limited Liability Company
1.2 Register the business name
The next thing to do once you have identified the type of business is to choose an appropriate name. One of the requirements for this is that it is not the same name as an existing company. Furthermore, you also may not use potentially offensive or blasphemous phrases or words against any religion or person.
1.3 Acquire or rent a commercial space
Part of how to get a business license in Saudi Arabia involves having a business premise in the territory. This is because, starting in 2023, you will not be able to obtain a license if you do not have a headquarters in the country. In this case, you will have to rent an office or commercial space, although you can also work with a local service agent.
In addition, you have 2 options if you are going to start a company from scratch, settle on the mainland, or in one of the Free Zones.
1.4 Get an investment license
Foreigners looking to invest in any business in the country need an investment license. Therefore, you must go to the Saudi Arabian General Investment Authority (SAGIA), which is the entity in charge of licenses. Thus, you will be able to invest in the territory, establish a company from the beginning, or a branch abroad.
In the same way, you will need to process a commercial registration certificate to be able to continue with the business start-up process. To do this, you must carry out the process at the Ministry of Commerce and Investments of the country, with which we can help you.
1.5 Collect all required documentation
At the Ministry of Trade and Investment, you must also submit the necessary documentation to complete the process. Here we can also provide you with the necessary assistance so that you know and have each document in order. Thus, you must provide the following:
- Identification and address of directors and shareholders
- Passport copies (directors and shareholders)
- Copies of business name confirmation
- Articles of Association (AOA)
- Memorandum of Association (MOA)
- A bank reference letter
- Leasing contract
- Certificate of clearance and good conduct
- Power of attorney of each of the partners
In addition to this, you will also need to obtain a business visa to settle and work in the country. Likewise, the embassy of Saudi Arabia and the Ministry of Foreign Affairs must certify each of the documents.
2. Get a trade license in Saudi Arabia
Part of how to get business license in Saudi Arabia involves obtaining a business registration from the Ministry of Commerce and Industry. From there you can begin the process of obtaining your business license. In addition, once you obtain it, the said license will allow you to carry out the commercial activities allowed in the country.
In this way, the first thing you should do is make the corresponding application to the Ministry of Commerce and Industry. Likewise, in the same way as with the general establishment of the business, to obtain the permit you must record the following:
- The commercial registration certificate plus a copy
- Copy of the passport of the person applying for the license
- 2 photos of the applicant
- A bank statement from a local bank to prove that you have an account in good standing
- Proof of payment of fees
After you have collected all the documents, you will have to go for an interview with a representative of the Ministry of Commerce and Industry. In this way, the authority will collect the necessary information about your business and your commercial intentions in the country. Next, the authorities will apply for a written exam with which, if you pass it, you will be able to obtain the license.
You should know that you need to renew your license every year, which includes paying a fee to keep the permit active. In addition, the company setup in Saudi Arabia involves complying with the laws and regulations or you will lose the license.
On the other hand, license fees vary according to its type, the type of business, and the place of establishment. However, the cost is reasonable and does not represent an impediment to establishing your business in the country.
3. Get the best support to start your business in Saudi Arabia
We have already detailed how to get business license in Saudi Arabia but we can do much more for you. Get the best assistance service to start a business in the country just by contacting us at +971 43 316 688. Similarly, you can write to us at contact@companyformationsaudi.com for information about our services.

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