The Kingdom of Saudi Arabia seeks to keep pace with the development and digital transformation in all sectors, achieving the Saudi Vision 2030 of the Royal Commission, and creating opportunities for development, innovation and entrepreneurial technology in the Kingdom. Therefore, the Royal Commission encourages entrepreneurs to start projects and export abroad, and sets controls and requirements for issuing entrepreneur licenses in KSA, which we shall explain below:
Service Description
The service is provided to entrepreneurs who wish to establish emerging technical, innovative or distinguished companies capable of expansion and growth to provide a better and different product or service in the Saudi market and have supportive entities approved by the Ministry of Investment.
The entrepreneurial project is an intellectual product based on creative and comprehensive thinking strategies, and go through five phases: brainstorming, developing, launching, growing, and exiting or harvesting. The Saudi Ministry of Investment is responsible for issuing these licenses.
Required Documentation
- The company's Board of Directors' decision to apply for a license, clarifying the type of invention and its sponsor, and specifying the authorized powers; in addition to a copy of the national ID, if one of the shareholders is a natural person (individual) holding the nationality of one of the GCC countries (in case this person's data is not registered in the ABSHAR system), or the applicant's passport.
- A letter of support or proof of project approval from the supervising entity (An accredited Saudi universities or business incubators); which clarifies: the name of the project, the required activity, ownership data, and contact information for the supervising entity.
Rules and Restrictions
- In case that one of the shareholders was previously licensed by Ministry of Investment, it must be clarified when filling in the shareholders' data while submitting the electronic application.
- Authorized Saudi universities or business incubators shall approve the license applications.
- If the applicant is a resident of the Kingdom, the Saudi sponsor should submit a letter of no objection.
- The duration of the license is one year and is renewed annually for the first five years with the approval of the supervising entity.
- The applicant must enter the data of the Saudi national identity/ Premium residence/ residence if one of the shareholders holds any of them, or the commercial registration data for the participating Saudi companies during the electronic application submission.
Licenses Fees
- License fees are 2,000 Saudi Riyals yearly.
- License fees for the first year subscription to obtain services from the Investor Relations Centers of the Ministry of Investment are 10,000 Saudi Riyals; starting from the beginning of the fourth year, and after the end of the fifth year, the entity is reclassified and the Payment for services is applied as a regular license
- Service fees shall be paid within (60) days from the bill issuance date. In case of delay, the service shall be cancelled and a new application has to be submitted.
The entrepreneur licenses in KSA are applied for through the website (the E-Services Portal), and the service is delivered within a maximum of two working days.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
