What are the points you need to consider while planning for a private business? Of course you need to get a feasibility study, costs and of course to get a trade license. In this article, we will help you with getting the trade license in Saudi Arabia by mentioning the steps to get it and the different legal consultations regarding the trade license from Mousa & partners office.
What is a trade license in Saudi Arabia?
Trade license is a license that permits the work of foreign entities (foreign investments) in the commercial trade in Saudi Arabia, so they can work in the wholesale trade and retail trade in Saudi Arabia. There are 2 types of trade license in Saudi Arabia, trade license with a Saudi shareholder and 100% foreign trade license.
How to get a trade license in Saudi Arabia with a Saudi shareholder?
Getting different types of trade licence in Saudi Arabia can be an easy process through the E-service portal at the ministry of Investment, you just need to prepare your necessary documents and begin the application process to get a trade license in Saudi Arabia.
The following steps need to be followed in order to get trade license in Saudi Arabia:
- Prepare the essential documents which are as follows:
- A Copy of the commercial registration of the foreign shareholding partner which needs to be certified by the Saudi Embassy in their country.
- A copy of the national identity if one of the partners is holding a nationality of one of the gulf countries and his data is not registered on the ABSHAR system.
- Financial statements of the last financial year of the applicant company, which needs to be certified by the Saudi embassy at the applicant’s company.
- Fill out the other required data. The data required for registration are as follows:
- Data of the Saudi Nationality residence, premium residence or residence if any one of the applicants are holding them.
- Commercial registration data for the participating Saudi companies during the electronic application submission.
- Attach the required documents, which we previously listed.
- Pay the required registration fees. The registration fees of the trade license is 2000 SR annually for 5 years maximum, and 10000 SR for the first year if you need to obtain services from the Ministry of Investment investors’ relations centers. Fees of the fees of services from the Ministry of Investment investors’ relations centers will be 60000 SR for the following years.
You need to take into consideration that to get the trade license in Saudi Arabia with a Saudi shareholder, he needs to own at least 25% of the commercial activity that needs to be licensed.
Finally, service fees need to be paid within 60 days from the admission process, and if the fees are not paid within the prescribed period, the request will be rejected, and needs to be resubmitted.
How to get a 100% foreign trade license in Saudi Arabia?
In case you need to get the trade license with a 100% foreign entities, you need to make some different steps as follows:
- Prepare the required documents which are a copy of the commercial register in at least in (3) regional or international markets of the participating entity authenticated by the Saudi Embassy, and the financial statements of the last financial year of the applicant company and certified by the Saudi Embassy.
- Attach the required documents into the E-service portal at the Ministry of Investment.
- You need to take into consideration that the minimum capital required to practice wholesale and retail trade activity in Saudi Arabia, according to the Ministry of Investment for foreign companies (foreign investments)with a 100% ownership percentage, is (30) million SR.
- Pay the required service fees which is 2000 SR annually for the first 5 years, and (10,000) Riyals as subscription for the first year to obtain services from the Ministry of Investment investors relations centers, which will increase to 60000 SR for the following years.
Conditions for getting a 100% foreign trade license in Saudi Arabia
There are a number of regulations that control the issuing of the 100% foreign trade license in Saudi Arabia, these conditions are as follows:
- The service of issuing trade licences with 100 % foreign entities is limited to companies with 3 or more branches in regional or international markets.
- During the first 5 years, the company needs to achieve the localization rates as determined by the Ministry of Human Resource and Social Development, and locate them in senior management posts to ensure their continuation.
- The company needs to comply with training 30% of its Saudi employees.
- Company needs to invest an amount of no less than 300 million SR including 30 millions SR as the cash capital of the company, and this condition should occur over 5 years, or investing an amount of no less than 200 million SR including 30 millions SR as the cash capital of the company, with achieving one or more of the following requirements:
- In the field of manufacturing, 30% or more of the company’s products distributed locally shall be manufactured in the Kingdom of Saudi Arabia.
- In the field of research and development programs, % 5 or more of total sales must be allocated to the establishment of a research and development programs in the Kingdom.
- In the field of logistics and distribution, companies need to establish a unified center to provide those services, and provide after-sales services
Mousa & partners services
Mousa & partners legal office is your best place to get legal advice to begin your business freely at the first ranked country in the index of international commerce. With Mousa & partners legal office you can get the following services:
- Work regulation drafting services, where you can make all the rules that regulate your business with legal consultations.
- Issuance of Capital Market Authority licenses and Central Bank licenses.
- Arbitration in international and local commercial disputes.
- JV agreement, which can help you with your business partnerships.
- Corporate Governance for Joint-Stock Companies and Family Businesses.
Common questions about trade license in Saudi Arabia
What are the advantages you can get through a trade license in Saudi Arabia?
Getting a trade license in Saudi Arabia can give you a lot of benefits as follows:
- Legal recognition, as you are not able to practice any activity without legal recognition.
- Give you access to financial services, which you can not get without making a trade license.
- Customer trust, which will improve with trade license issuing.
- Enhance your credibility and reputations with customers and suppliers.
- Facilitate your expansions.
What are the advantages of investment in Saudi Arabia?
Through investment and getting a trade license in Saudi Arabia, you can get access to a wide and growing Saudi market, benefit from different facilities made by the Saudi government in 2030 vision, and benefit from easy procedures of registration made in Saudi Arabia.
Get your trade license and start your business now in Saudi Arabia and do not fear any legal problems with Mousa & partners legal office, we can help you with all different legal issues that may face you during practicing your business.
Reserve your free consultation with Mousa & partners legal office
Do you need to begin your business but you need to get a legal consultation ? Get a free consultation with a great legal team who can give you the best legal advice to begin your business without any complications, and get the highest benefits from the encouraging investment climate in Saudi Arabia. contact Mousa & partners legal office., and get your free consultation, with the best legal team.
Contact information for Mousa & partners legal office
Address: Floor H, Building 407, Zone 4, King Abdullah Financial District (KAFD), Riyadh, Saudi Arabia
Phone number: +966505898510
Email: info@mousalegal.com
Working time: everyday from 9 AM to 5 PM, except Saturday and Sunday from 10 AM to 6 PM.
Trade license is your official gate to begin trading in Saudi Arabia. With the 2030 vision, all the required licences can be issued easily, all you need is to prepare your documents and get the required information about the type of trade you will start.
