- within Immigration, Employment and HR, Food, Drugs, Healthcare and Life Sciences topic(s)
Riyadh now occupies a leading position in the regional business landscape, driven by Saudi Vision 2030 and a renewed investment and licensing system that embraces innovation and entrepreneurship. However, obtaining the proper business licence, as a legal requirement that impacts compliance, opportunities, and sustained success, remains the cornerstone of any successful venture.
Sadany & Partners Law Firm in Riyadh is a leader in licensing practices, guiding its clients through the regulatory environment in the KSA. Our bilingual legal team provides accurate, prompt and commercially efficient licensing services, enabling businesses to embark on their growth journey with confidence.
Why is licensing more important than ever?
In the KSA, a licence is not just a permit; it is your legal identity. It specifies the following:
- Permitted activities.
- Ownership rights and limits on foreign participation.
- Government agencies supervising your operations.
- Tax obligations, zakat, and Saudisation.
With the digital transformation of Vision 2030, most operations have moved online. However, errors in documentation, activity selection, or certification continue to cause costly delays or rejections. Therefore, working with a reliable law firm in Riyadh ensures that the licensing process complies with the latest regulations issued by the Saudi Arabian General Investment Authority (MISA), the Ministry of Commerce, and other relevant authorities.
Types of licences in the KSA
Different activities require different types of licences. As your legal partner, we help you determine the most appropriate licence for your business model, ensuring ease of approval and future scalability.
|
Licence type |
Competent authority |
Common usage |
|---|---|---|
|
Investment licence |
Investment Authority |
For foreign investors and international companies. |
|
Business licence |
Ministry of Commerce |
For trade, retail and general commercial activities. |
|
Professional licence |
Ministry of Investment / Ministry of Trade |
For service, consulting, and technical professions. |
|
Industrial licence |
Ministry of Industry and Mineral Resources |
For industrial, energy and productivity projects. |
|
Property licence |
Ministry of Housing |
For property developers and estate agents. |
|
Tourist licence |
Ministry of Tourism |
For hotels, resorts, and travel agencies. |
There are specific requirements, timelines, and renewal procedures associated with each type of licence. We manage all of these on your behalf.
Licensing process steps in Riyadh
Step 1: Legal advice and activity assessment
We start by reviewing your business activity, ownership structure, and long-term goals. This allows us to determine the following:
- The most suitable licence type for your business activity.
- Your eligibility for full foreign ownership.
- The optimal legal structure (limited liability company, branch, or joint stock company).
Step 2: Document preparation and certification
We prepare all necessary legal documents, including the company's articles of association in Arabic and English, board resolutions, powers of attorney, and financial statements.
Foreign documents are accurately translated and certified by the Saudi Embassy to avoid rejection.
Step 3: Submission of application
Our team submits your licence application through the relevant ministry portal (Investment Authority or Ministry of Commerce). We monitor every stage of the process and liaise directly with officials to ensure swift approval.
Step 4: Commercial registration and post-licensing compliance
Once your licence has been approved, we will handle the following:
- Commercial registration with the Ministry of Commerce.
- Tax registration and zakat registration with the ZATCA.
- Registration with the General Organisation for Social Insurance (GOSI) for Workers.
- Municipal licence and Chamber of Commerce membership.
Your project will be ready to operate at full capacity, compliant with regulations, and poised for growth.
Why us?
- Incomparable organizational experience
Our lawyers are keen to keep abreast of all changes in the regulations of the Investment Authority and the Ministry of Commerce, ensuring that your applications are accurate, compliant, and strategically optimised.
- Bilingual legal drafting
We prepare all documents in both Arabic and English to ensure their legal validity in the KSA, while keeping you fully informed of all details.
- Transparent and pre-determined costs
Our quotations separate government fees from legal fees, so you are fully aware of the amount you are paying.
- Comprehensive legal solutions
We take care of all aspects of setting up your company, including licensing:
- Company formation and registration.
- Compliance with taxes and zakat.
- Labour law and Saudisation planning.
- Contract drafting and dispute resolution.
- A track record of achievements
We have helped clients from the Gulf Cooperation Council States, Europe, and Asia successfully obtain their licences and launch businesses that are fully compliant with regulations in the KSA.
Example: Fast-track licensing for a European logistics firm
A European logistics firm contacted Sadany & Partners Law Firm to open a branch in Riyadh.
- We identified the appropriate investment licence as the optimal route to full foreign ownership.
- Preparation and certification of all parent company documents within one week.
- We applied for an investment licence and obtained approval within seven working days.
- We completed registration with the Commercial Registry, the ZATCA, and the GOSI within two additional weeks.
The client commenced operations within one month – fully licensed, compliant with regulations, and ready to contract with Saudi partners.
Common mistakes made by investors – and how we can avoid them
|
Mistake |
Consequences |
Our Solutions |
|---|---|---|
|
Choosing the wrong activity category |
Delay or refusal of a license |
We classify activities using the updated MISA codes. |
|
Incomplete document approval |
Rejection of the application |
We handle authentication procedures at embassies and the Ministry of Foreign Affairs on your behalf. |
|
Ignoring documents required after licensing |
Fines and suspension |
We complete registrations with the Commercial Registry, the ZATCA, and the GOSI. |
|
Failure to comply with renewal deadlines |
Licence expiry |
We follow up on renewal processes and provide updates in a timely manner. |
Legal advice for businesses in Riyadh
- Foreign ownership: Most sectors allow full ownership, except insurance, media, and defence.
- Taxes: Corporate tax is levied on foreign shareholders at a rate of 20%, while Saudi citizens pay zakat.
- Saudisation (Nitaqat): A specified percentage of Saudi nationals must be employed in most sectors.
- Renewals: Registrations with the MISA and the Saudi Ministry of Commerce must be renewed annually to ensure their validity.
- Language: All legal documents must be in Arabic. Drafting documents in two languages is essential for foreign investors.
How does legal expertise contribute to business growth?
At Sadany & Partners Law Firm, we believe that legal compliance is not just a matter of protection; it is a strategic approach. When your licences, registrations, and contracts are valid, you can:
- Participation in government project tenders.
- Obtaining banking and financing approvals.
- Expanding into new sectors or regions.
- Attracting international partners and investors.
Our role is to help you grow with complete legal confidence, from licensing to expansion.
Conclusion
Book your consultation appointment now
In a rapidly evolving regulatory environment, a competent legal partner is the cornerstone of success. We provide Riyadh-based businesses with the clarity, speed, and depth of experience necessary to obtain licences and achieve prosperity with confidence in the highly competitive Saudi market.
Whether you are establishing your first business or expanding a multinational organization, our team ensures a smooth licensing process that complies with regulations and laws and is tailored to your strategic objectives.
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.
[View Source]