Commercial License

Considering the importance of commercial license activities in the Kingdom of Saudi Arabia and the pursuit of the Kingdom to facilitate the entry of foreign entities to perform an activity in the wholesale trade and retail trade in the Saudi market, according to specific guidelines and conditions, it has introduced a number of options for ambitious foreign, namely:

1. Commercial license with Saudi shareholder
2. 100% foreign commercial license

Commercial license with Saudi shareholder

This Service is provided to foreign entities that are interested in the activity of wholesale and retail trade in the Kingdom of Saudi Arabia with a Saudi shareholder.

Documents require for Commercial License

1. A copy of the commercial registration of the shareholding partner certified by the Saudi Embassy and a copy of the national identity, if one of the partners is a natural person holding the nationality of one of the GCC countries (in case his data is not registered in the ABSHAR system).
2. Financial statements of the last financial year of the applicant company and certified by the Saudi Embassy.

 Rules and Restrictions

1. The existence of a Saudi shareholder in the investment license with a share of not less than 25% of the company.
2. Premium residence holders are exempted from the above documents.
3. In case that one of the partners was previously licensed by the Ministry of Investment, it must be clarified when filling in the partners’ data while submitting the electronic application.
4. The applicant must enter the data of the Saudi national identity / Premium residence/residence. If one of the partners holds any of them or the commercial registration data for the participating Saudi companies during the electronic application submission.

 

100% foreign commercial license

This Service is provided to 100% foreign entities that are interested in the activity of wholesale and retail trade and e-commerce in the Kingdom of Saudi Arabia.

 

Documents required for 100% foreign commercial license

 

1. A copy of the commercial register in at least (3) regional or international markets of the participating entity authenticated by the Saudi Embassy.
2.  Financial statements of the last financial year of the applicant company and certified by the Saudi Embassy.

 

Rules and Restrictions

1. This service limit to the foreign companies that have a presence at least in (3) regional or international markets.
2. In case that one of the partners was previously licensed by the Ministry of Investment. It must be clarified when filling in the partners’ data while submitting the electronic application.
3. The company shall comply to achieve following standards during the first five years:
   •  To achieve the localization rates as determined by the Ministry of Human Resource and Social Development. It shall develop and implement a plan to locate them in senior management posts in the first five years and to ensure their continuation.
   • The company is complying with train (30%) of Saudi employees annually.
4. One of the following options:
   1. A company shall comply with investing an amount of no less than 300 million Saudi Riyals (including 30 million Saudi Riyals as the cash capital of the company) over five years starting from the date of obtaining the investment license.
   2. It shall comply with investing an amount of no less than 200 million Saudi Riyals (including 30 million Saudi Riyals as the cash capital of the company) over five years starting from the date of obtaining the investment license, in addition to achieving one or more of the following requirements during the first five years:

 

The standard	The minimum requirement
Manufacturing	% 30 or more of the company’s products distributed locally manufacture in the Kingdom of Saudi Arabia
Research and development programs	% 5 or more of total sales shall allocate to the establishment of research and development programs in the Kingdom
Logistics and distribution	The establishment of a unified center to provide those services, and provide after-sales services

 

Complete guide to obtaining a License and Investment in Saudi Arabia. To know more about Company Formation in Saudi Arabia, Get in touch with Business Link.

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