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:
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:
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.
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)