Trade License Modification in Saudi Arabia
If you’re planning to start a business in the Kingdom of Saudi Arabia, obtaining a trade license is the first official step. It’s a legal document issued by the municipality or local authorities that allows you to operate your commercial activity lawfully.
Issuing a Trade License in Saudi Arabia
The trade license is issued by the municipalities in Saudi Arabia and the process has been streamlined through digital platforms. Here’s a quick overview of how it works:
- Enter the business registration number and define the activity and space.
- Specify the business location and fill in property or cart details.
- Pay the fees if the activity is “instant” or submit the request for review in case of non-instant activities.
Requirements for Obtaining a Trade License
To issue a commercial license in Saudi Arabia, you must meet the following:
A valid lease agreement or proof of property ownership for at least six months.
Trade License Cost in Saudi Arabia
The cost of issuing a trade license varies based on several factors such as:
- The location (city or province),
- The size of the business premises,
- Whether a waste management contract is available.
- In Riyadh, a fresh dairy distribution store of 100 m² costs SAR 620 if there is a cleaning contract, and SAR 970 without it.
- In the Northern Borders, for the same activity and size, the cost is SAR 500 with a cleaning contract and SAR 780 without it.
Business Link can help you accurately estimate your licensing fees.
Documents Required to Issue a Trade License
Copy of the national ID of the license holder.
Copy of the commercial registration.
Copy of lease contract or title deed.
Civil Defense safety certificate.
Safety equipment invoice or safety report (for instant activities).
Camera installation certificate from police.
Authorization letter if submitted by a representative.
Waste management contract (if applicable).
Steps to Renew a Trade License
Log in to Balady Portal using your National Single Sign-On.
Choose “Renew Trade Activity License.”
Select the license to be renewed.
Update business information if needed.
Upload required documents (lease contract, waste contract, etc.).
Pay the renewal fees online.
Download or print the renewed license.
What’s the Difference Between a Commercial Registration and a Trade License?
Commercial Registration (CR)
Issued by Ministry of Commerce
Represents the business as a legal entity
Includes ownership, capital, and company data
Required for bank accounts and tax registration
Trade License
Issued by municipalities/local authorities
Authorizes operation at a specific location
Includes activity type, location, and conditions
Required to start operating the business
Frequently Asked Questions (FAQs)
How can I issue a shop license?
A shop license is one type of trade license, required for fixed locations such as retail stores, groceries, or workshops. The process is similar but may include extra requirements like:
- Compliance with safety standards (especially for restaurants or auto repair).
- Meeting health requirements (for bakeries, salons, etc.).
- Approved signboard format.
How can I check the status of a trade license?
Use the “License Inquiry” service on the Balady platform:
- Visit the Balady website.
- Select “Inquire About Commercial Activity Licenses.”
- Enter the license number, activity name, or location data.
- View the license status, expiry date, and details.
Can I apply for a trade license online?
Yes, you can apply for a trade license entirely online through the Balady Portal, under the Ministry of Municipal and Rural Affairs and Housing. The platform allows for submission, payment, and status tracking digitally.
