FAQ

• Limited Liability Company (LLC).
• Joint Stock Company (JSC).
• Branch of a foreign company.
• Technical and scientific service office.

• A copy of the Articles of Association of the shareholders.
• A copy of the Commercial Registration of the shareholders.
• A copy of the national ID if the shareholder is an individual.
• A copy of the ID of the manager(s) or board members.
• The national address.
• A notarized Power of Attorney.

1. Reserve a trade name for the new entity through the Ministry of Commerce (MOC) online portal.
2. Choose activities from the ISIC4 classification that align with the desired business activity.
3. Confirm the following details with the client:
   • Paid-up capital.
   • Management (number of managers and their authorities).
   • Authority to establish branches of the company.
   • Company’s duration.
   • Main headquarters.
   • Commercial registration duration (1–5 years).
4. Set up the electronic platform and submit the Articles of Association (AOA) for review and approval by the MOC.
5. Once approved, notarize the AOA in front of a notary public or electronically via the shareholders’ Absher accounts.
6. Pay the invoice issued by the MOC.
7. Issue the commercial registration for the new entity.

• A notarized and translated Power of Attorney certified by the Saudi embassy or consulate.
• A resolution from shareholders or the board of directors to invest in Saudi Arabia, translated and certified by the Saudi embassy or consulate.
• A copy of the shareholders’ Articles of Association, certified by the Saudi embassy or consulate.
• A copy of the shareholders’ Commercial Registration, translated and certified by the Saudi embassy or consulate.
• Audited financial statements of the foreign company for the last fiscal year, certified by the Saudi embassy or consulate.
• Copies of passports for the general manager or board members of the Saudi entity.

1. Reserve a trade name for the new entity, either online or manually, with the Ministry of Commerce.
2. Choose activities from the ISIC4 classification that align with the desired business activity.
3. Submit an application to the Ministry of Investment for an investment license for foreigners.
4. Confirm the following details with the client:
   • Paid-up capital.
   • Management (number of managers and their authorities).
   • Authority to establish branches of the company.
   • Company’s duration.
   • Main headquarters.
   • Commercial registration duration (1–5 years).
   • Investment license duration (1–5 years).
5. Draft and submit the Articles of Association for review and approval by the Ministry of Commerce.
6. Once approved, notarize the Articles of Association in front of a notary public.
7. Issue the commercial registration for the new entity.
8. Obtain operational licenses from relevant government entities if needed.

• The proposed name must be in Arabic.
• The proposed name must have an appropriate meaning in Arabic.
• The proposed name must not be identical to an existing or reserved trade name.
• The proposed name should reflect the company’s activities (e.g., Al Noor Contracting Company or Al Noor Information Technology Company).

Foreign investors can engage in all activities listed under the ISIC4 classification, provided these activities are not included in the list of activities prohibited for foreign investors.

The list of prohibited activities (“negative list”) includes:

• Oil exploration, drilling, and production (except for mining-related services CPC 5115 and 883).
• Services related to military sectors.
• Security and investigative services.
• Real estate investment in Makkah and Madinah.
• Tourist guidance services related to Hajj and Umrah.
• Employment and labor services, including local recruitment offices.
• Real estate brokerage.
• Commission agents (CPC 621).
• Nursing, physiotherapy, and para-medical services (CPC 93191).
• Fisheries.
• Blood banks, poison centers, and quarantine centers.

LLCs:

• No statutory minimum capital under the Companies Law.
• For foreign investors: A capital of no less than SAR 100,000 is recommended.
• For Saudi/GCC investors: A capital of no less than SAR 10,000 is recommended.

JSCs:

• Minimum capital required is SAR 500,000 under the Companies Law.

LLCs:

• Managed by either:
  • A single manager.
  • Two managers.
  • A management board.

JSCs:

• Managed by a board of directors comprising:
  • Minimum: 3 members.
  • Maximum: 11 members.

1. Service License:
   Activities include construction, management investment, IT, tourism, healthcare, food services, financial services, etc.
   Restrictions:
   • Construction: The company cannot provide consultancy services.
   • Healthcare:
     • The entity must be a company.
     • Facilities must be accredited by a recognized healthcare organization.
     • A minimum of 3 years of experience in the country of origin.
     • Exemption: Premium Residency holders are exempt from documentation requirements.
2. Industrial License:
   Activities include heavy and light industries, manufacturing.
   Restrictions:
   • Premium Residency holders are exempt from documentation requirements.
   • Must coordinate with the Ministry of Commerce and Industry for industrial licensing.
3. Commercial License:
   Activities include wholesale and retail trading.
   Restrictions:
   • With a Saudi partner:
     • Minimum Saudi partner share: 25%.
     • Minimum total capital: SAR 26,666,667.
     • Minimum foreign capital contribution: SAR 20,000,000.
   • 100% Foreign Ownership:
     • Minimum capital: SAR 30,000,000.
     • Must meet employment localization targets and regional/global presence criteria.
4. Entrepreneurial License:
   Activities include experimental projects approved by Saudi universities or incubators.
   Restrictions:
   • Support letter from the supervising entity.
   • No objection letter from a Saudi sponsor for foreign residents.
5. Consultancy License (Engineering Offices):
   Activities include engineering consultancy services.
   Restrictions:
   • The company must be licensed in 4 countries.
   • A minimum of 10 years of experience.

1. Service License:
   Activities: Consulting, engineering, healthcare, tourism, IT, etc.
   Restrictions:
   • Adherence to activity-specific regulations.
2. Industrial License:
   Activities: Manufacturing, heavy and light industries.
   Restrictions:
   • Coordination with the Ministry of Industry is required for approvals.
3. Commercial License:
   Activities: Retail and wholesale trading.
   Restrictions:
   • Minimum capital: SAR 500,000.
   • Compliance with localization (Saudization) regulations.
4. Real Estate Development License:
   Activities: Construction of residential and commercial properties.
   Restrictions:
   • Real estate investment in Makkah and Madinah is prohibited.
   • Required approval from the Ministry of Municipal and Rural Affairs.

1. Prepare the required documents:
   • Power of Attorney.
   • Shareholders’ resolution.
   • Articles of Association.
   • Commercial registration of the parent company.
   • Financial statements for the last fiscal year.
   • Manager’s passport copy.
   • All documents must be notarized, translated, and certified by the Saudi embassy.
2. Apply for an investment license from the Ministry of Investment.
3. Register the branch with the Ministry of Commerce.
4. Complete the setup of a national address and secure operational licenses if required.

• Zakat: Levied at 2.5% of the company’s zakat base.
• VAT: Standard rate is 15% on taxable goods and services.
• Withholding Tax: Applied on payments made to non-residents for services performed in Saudi Arabia.

• Zakat: Levied at 2.5% of the Saudi/GCC shareholder’s zakat base.
• Corporate Income Tax: Levied at 20% on foreign shareholders’ net profits.
• VAT: Standard rate is 15% on taxable goods and services.
• Withholding Tax: Applied on payments made to non-residents for services performed in Saudi Arabia.

• Companies must hire Saudi nationals to meet minimum quotas based on the Nitaqat program classification for the company’s size and industry.
• Example:
  • Platinum companies: No additional Saudization requirements.
  • Green companies: Must maintain specific ratios of Saudi employees to remain compliant.
  • Red companies: Face penalties and cannot issue or renew work permits.

The Nitaqat program is a Saudization initiative designed to increase the employment of Saudi nationals in the private sector. Companies are categorized into bands (Platinum, Green, Yellow, and Red) based on their compliance with Saudization requirements.

• Fines for not meeting Saudization quotas.
• Inability to renew or issue work permits for expatriate employees.
• Suspension of government services, such as visas and company registrations.

1. Submit an online application through the Ministry of Investment portal.
2. Provide the required documents based on the type of license (e.g., service, commercial, industrial).
3. Wait for the Ministry to review and approve the application.
4. Once approved, collect the investment license.

1. Log in to the Ministry of Commerce portal.
2. Submit the renewal application and confirm the registration duration (1–5 years).
3. Pay the renewal fee through the SADAD payment system.
4. Download the renewed commercial registration.

1. Employment contracts must be in writing and specify the terms of employment.
2. Employers must pay wages on time and through a bank account.
3. Provide employees with health insurance.
4. Adhere to Saudi labor laws regarding working hours, overtime pay, and rest periods.
5. Register employees with the General Organization for Social Insurance (GOSI).

1. Valid passport with a minimum validity of 6 months.
2. Signed employment contract.
3. Medical examination report from an authorized clinic.
4. Approval from the Ministry of Human Resources and Social Development (HRSD).
5. Visa issuance through the Ministry of Foreign Affairs.

1. Submit an application to the local municipality.
2. Provide the commercial registration of the company.
3. Submit the national address.
4. Provide a lease agreement for the premises.
5. Pay the required fees and obtain the license.

1. Apply through the Ministry of Industry and Mineral Resources (via the portal).
2. Submit the required documents:
   • Feasibility study for the project.
   • Environmental impact report.
   • Commercial registration.
   • Technical details of the project (e.g., machinery, raw materials).
3. Wait for the ministry to review and conduct inspections.
4. Pay the required fees to receive the industrial license.

1. Register with the Ministry of Municipal, Rural Affairs, and Housing.
2. Submit the required documents, including:
   • Proof of company registration.
   • Financial solvency certificate.
   • Construction plans.
3. Secure approvals for the project (environmental, zoning, etc.).
4. Obtain the license after fees are paid.

1. Apply through the Ministry of Investment portal.
2. Submit the required documents, including:
   • Proof of qualifications and experience.
   • Business plan.
   • Commercial registration (if applicable).
3. Wait for the ministry to review and issue the license.

1. Submit an application through the Saudi Authority for Intellectual Property (SAIP) portal.
2. Provide the required documents:
   • Trademark image or logo.
   • Commercial registration.
   • Power of attorney (if applying on behalf of someone).
3. Pay the trademark registration fees.
4. Wait for the authority to review and approve the application.

1. Register online through the Ministry of Investment (formerly SAGIA) portal.
2. Submit the required documents:
   • Business plan.
   • Financial statements (for foreign investors).
   • Articles of association.
3. Pay the application fee.
4. Receive approval and obtain the license.

1. Obtain an export license from the Saudi Export Development Authority (SEDA) for certain products.
2. Follow the regulations set by the Saudi Standards, Metrology, and Quality Organization (SASO).
3. Provide all required shipping and customs clearance documents.
4. Comply with GCC and Saudi-specific export restrictions (e.g., on hazardous or restricted goods).

1. Importers must be registered with the Ministry of Commerce.
2. Obtain a valid commercial registration for the importing business.
3. Ensure imported goods meet SASO standards and have a Certificate of Conformity.
4. Submit customs clearance documentation (invoice, packing list, bill of lading, etc.).
5. Pay customs duties as applicable.

1. Contracts must be written in Arabic (a translated version is acceptable but the Arabic version prevails).
2. Include all essential elements: offer, acceptance, consideration, and lawful purpose.
3. Contracts must comply with Shariah principles (e.g., prohibition of interest/usury).
4. Have contracts notarized if required for enforcement.

1. Fines of SAR 10,000 for failure to register for VAT on time.
2. Penalties of up to 50% of the unpaid tax for non-payment or incorrect declarations.
3. Additional penalties for late filing or non-compliance with VAT record-keeping requirements.

1. A unified customs tariff applied across GCC countries.
2. Free movement of goods between GCC countries without additional customs duties.
3. Coordination of customs procedures and regulations.
4. Revenue-sharing mechanism for collected duties.

1. Provide the company’s commercial registration.
2. Submit the investment license (for foreign investors).
3. Provide identification documents for company shareholders and authorized signatories.
4. Submit the company’s articles of association.
5. Provide proof of the company’s national address.

1. Health insurance is mandatory for all employees.
2. Third-party liability insurance is required for certain industries.
3. Commercial property insurance is recommended (optional but advisable).
4. Employers must comply with insurance regulations set by the Cooperative Health Insurance Council (CCHI).

1. Notify the Ministry of Commerce and submit a liquidation request.
2. Publish a liquidation announcement in an official newspaper.
3. Settle all outstanding debts and employee wages.
4. Cancel all government licenses and deregister the company with authorities (e.g., GOSI, Zakat, Tax, and Customs Authority).
5. Distribute remaining assets among shareholders.
6. Submit final documentation to close the commercial registration.