Obtain a Business License in Saudi Arabia

Setting up a company in Saudi Arabia also requires obtaining a business license if the enterprise is foreign-owned. The permit may be a general one or issued by a specific authority when the business operates in a certain field.

Below, our agents for opening a Saudi company present the main types of trade licenses in Saudi Arabia. They are at your service if you need to apply for any of them.

The available business licenses in Saudi Arabia

There are several types of business licenses that can be obtained in Saudi Arabia. They are:

• the service license;
• the professional business permit;
• the industrial license in Saudi Arabia;
• the trading authorization;
• the agricultural permit;
• the mining license.

In addition, opening a company in Saudi Arabia as a foreigner also requires registering the investment with the Ministry of Investment (MISA).

Apart from these, if you want to open a startup, there is a special Saudi business license for such companies: the entrepreneurial permit.

The SAGIA license in Saudi Arabia

The first type of Saudi trade license to obtain in order to start a business in Saudi Arabia is the SAGIA permit. Its name is a shortcut to the authority issuing it: the Saudi Arabian General Investment Authority which now is the Ministry for Investment. This authorization became the MISA permit and, under the Investment Law in force since February 2025, has been replaced by an investment registration certificate.

Practically, this is an authorization indicating a foreign investor meets the company incorporation requirements imposed by the local authorities.

Obtaining a SAGIA license in Saudi Arabia

Applying for a MISA business permit in Saudi Arabia (SAGIA license) implies:

• choosing one of the available business structures (our Saudi company registration advisors can explain the differences between them);
• reserving a trade name;
• drafting the incorporation papers, which is another aspect in which our agents can help;
• filing for registration with the Ministry of Commerce (Commercial Register).

Once incorporated in the Commercial Register, the company must already hold its MISA investment registration (formerly the SAGIA licence), which is obtained before commercial registration.

Following that, it must continue the licensing procedure for the activity it will complete.

How to apply for an industrial license in Saudi Arabia

The industrial permit is a business license that enables a company to carry out manufacturing activities in Saudi Arabia. Through it, the company can be fully owned. To be granted this authorization, a business must meet the following requirements:

• it must have been registered in its country of origin for at least one year;
• it must have a minimum capital of SAR 25,000.

Please note that industrial licenses in Saudi Arabia are not granted to sole traders.

The professional business permit in Saudi Arabia

A suitable option for foreign entrepreneurs who want to carry out a licensed profession in Saudi Arabia is the professional permit. This type of authorization can be obtained by:

• accountants;
• lawyers;
• architects;
• dentists;
• financial advisors;
• engineers;
• hairdressers/cosmeticians.

For this purpose, they can set up their activities by opening sole proprietorships. However, it is important to note that for some professions, a local partner is required. This is the case for those seeking to provide consulting services in areas like: engineering, mining, or the maritime sector.

Also, before immigration to Saudi Arabia, they must ensure they apply for Saudi Iqamas.

The number of foreign companies, on the rise in Saudi Arabia

According to MISA data for the first quarter of 2024:

• in the first quarter of 2024, 127 foreign companies moved their regional headquarters to Saudi Arabia;
• this is a 477% growth compared to last year.

Apart from our support in setting up a business and obtaining a trade license in Saudi Arabia, we also have a team of accountants in Saudi Arabia at your disposal.

Feel free to contact us if you need support in applying for a trade license in Saudi Arabia.