Establishing a Company Under an Investment License
Establishing a company under an investment license is the optimal choice for foreign investors or partners from outside the Kingdom who seek a legal and secure entry into the Saudi market. This service allows the creation of a new business entity subject to foreign investment regulations, with numerous advantages such as free profit transfers, investor rights protection, and full legal rights equivalent to those granted to local investors. The entire process is carried out online, starting from obtaining the investment license through the Ministry of Investment platform, followed by company registration, issuance of commercial records, and integration with other relevant regulatory entities.
Importance of Establishing a Company Under an Investment License:
Enables foreign investors or partners to establish an independent legal entity with 100% ownership in most sectors.
Protects foreign capital with guarantees and rights stipulated under Saudi regulations.
Facilitates the free transfer of profits and capital abroad without restrictions.
Provides access to strategic sectors such as industry, technology, and healthcare, which offer priority and incentives for international investors.
Grants eligibility to benefit from government support programs and incentives for foreign investment projects.
Strengthens the ability to contract with government institutions or participate in major tenders officially open to foreigners.
Supports geographic expansion and exports through wide legal protection and international agreements.
Challenges of Establishing a Company Under an Investment License:
Strict initial approval conditions, requiring business activities and company nature to align with national investment policies.
Requirement of official documents certified by external authorities (embassies, foreign ministries) and accurate translation into Arabic.
Precision in drafting the Articles of Association and its attachments to comply with Ministry of Investment and Ministry of Commerce regulations.
Multiple stages and approvals needed if the company operates in restricted sectors or requires licenses from other authorities such as finance, health, or industry.
Complexity in determining capital requirements based on sector and meeting specific regulatory requirements for certain activities.
Lengthy approval cycles at times due to security checks or verification of the ultimate beneficial owner of the investment.
Potential technical or regulatory challenges in linking foreign-owned company data with Saudi government platforms.
Target Sector
Trader
Affiliated Authority
Saudi Business Center
Estimated Duration1 day
Gov Approval Window1 working day
Service Pricing2904
Government Fee1700
Mandatory Conditions
✓A legal document must be present if one of the partners is a government entity, granting them the right to incorporate or participate in a company.
✓A license from the Saudi Central Bank must be obtained if the nature of the business activity so requires.
✓In the event that one of the partners is a juridical party, the commercial registration must neither be written off or suspended.
✓The age must not be less than 18 years.
✓The partners must not be government employees.
✓The following must be verified in case the type of the company is (Professional): The partners must hold a valid professional license. The percentage of the licensed Saudi partner in the mixed company must not be less than 25%. The percentage of licensed partners must not be less than 70%. A valid investment license is required for period of no less than 30 days.
✓A valid investment license.
✓Fees: 1,600 SAR for a joint-stock company or simplified joint-stock company 1,200 SAR for a limited liability company 1,000 SAR for a general partnership or limited partnership 500 SAR for publication fees