How to Register a Company in Saudi Arabia

Al Suwaiket and Al Busaies is a leading law firm in providing foreign companies Set- up and formation and related corporate services in Kingdom of Saudi Arabia.

Introduction to Investment Licenses Categories in Saudi Arabia

The main forms of legal entities allowed in KSA are the limited liability, joint stock company and the branch of a foreign company. According to SAGIA regulations the investment license should be issued for one category of activities. and the requirement for licensing of each activity is different as the capital is different. Below are the categories of investment licenses:

1. Service license
   • Service activities includes trading, real estate, agriculture information technologies, tourism, training, health, insurance and reinsurance, education, logistic services, catering, financial services, aviation services and freight forwarding... etc.
   • The company capital for service licenses vary according to the type of the services and company activity as below:
   • The requirements to license Foreign LLC Company (Service License)
   • The requirements to License Foreign Company Branch (Service License)
   
   
2. Service License (Commercial Activity)
   • Includes the retail and wholesale, import and trade purposes.
   • There should be a Saudi partner of not less than 25% of the capital, the foreign partner ration should be not less than SR. 20.000.00/- Saudi Riyal of the capital as share, the company capital should not be less than SR. 26.666.667/- in figure of money amount.
   • The requirements to license Foreign Commercial company
   
   
3. Service license (Contracting Activity)
   • An applicant must be a corporate body and form a limited liability company or joint stock company or foreign company branch in the Kingdom of Saudi Arabia to apply for a foreign investment license, the applicant should be classified in their country with the same activity and not less rating for the third degree or equivalent and should provide distinguished works done by the company previously in the field of activity which would like to invest in accompanied with the obtained certificates of achievements.
   • The minimum capital should be no less than SR. 500,000 (Five hundred Thousand Saudi Riyal)
   • The requirements to license Foreign Construction Company
   • The requirements to License Foreign Company Branch (Construction)
   • The requirements to amend foreign company investment license
   
   
4. Service license (Real Estate Activity)
   • The real estate's value, in respect of the building and the land, should not be less than (30) million Saudi Riyals.
   • The real estate should not be invested within five years from the date it was processed.
   • The real estates should be out the boarders of Makkah and Madinah.
   • The requirements to license Foreign LLC Company (Service License Real Estate Activity)
   • The requirements to License Foreign Company Branch (Service License Real Estate Activity)
   
   
5. Industrial license (Industrial Activity)
   • Industrial license includes all industrial activities such as heavy industries, light industries and conversional industry.
   • The company capital should be no less than SR. 1,000,000 (One Million Saudi Riyal)
   • The requirements to license Foreign Industrial Company
   • The requirements to License Foreign Company Branch (Industrial)


6. Service license (Mixed Firm)
   • The requirements to establish mixed professional firm
   
   
   • The requirements document for SAGIA license Renewal


7. Service license (Agriculture Activity)
   • Requirements to establish foreign company (Agriculture Activity)
   • Requirements to open foreign company branch (Agriculture Activity)