Ministry of Investment

Issuing a Professional License with Saudi Shareholder

A description of the service for issuing a commercial license with a Saudi partner
The service of issuing a commercial license with a Saudi partner is one of the types of investment licenses provided by the Saudi Ministry of Investment. It targets foreign investors who wish to establish a commercial entity in the Kingdom in partnership with a Saudi citizen. This license allows the establishment of companies with various activities (commercial, service, industrial...) while benefiting from the presence of a local partner who helps facilitate market requirements and increase the chances of success.
The presence of a Saudi partner in this type of license gives the foreign investor higher flexibility and special privileges, such as facilitating some government approvals, increasing opportunities to access local tenders and contracts, and the ease of opening channels for dealing with both the governmental and private sectors.

To apply for the license, the investor must follow these steps:

Fill out the commercial license application form.
Submit a copy of the parent company's registration or passport (for individuals).
Attach a copy of the Saudi partner's national ID or commercial registration.
Sign a partnership agreement that clarifies the shares and capital provided by each party.
Submit the financial statements (for foreign companies) to prove financial solvency.
Pay the fees prescribed for issuing the license.

The importance of the service for issuing a commercial license with a Saudi partner1:

Enhancing joint investment opportunities and attracting foreign expertise while ensuring local participation.
Facilitating regulatory procedures due to the presence of a Saudi partner who is knowledgeable about local laws.
Increasing credibility with banks, clients, and government agencies due to the presence of a supportive local partner.
Supporting Saudi Vision 2030, which encourages foreign-local partnerships to diversify the economy.
The possibility of benefiting from special investment opportunities available through the local partner.
Expanding the business base and entering tenders and contracts that may require the presence of a Saudi partner.
Difficulties related to completing or issuing a commercial license with a Saudi partner:

The need to agree on a fair and clear partnership formula to avoid future disputes.
The need to legally document and certify the official agreements between both parties.
The multiplicity of documents and regulatory requirements, such as the translation and certification of foreign financial statements.
The possibility of delayed processing in case of deficiencies or objections to the chosen activity.
Operational risks arising from the partnership, such as differences in administrative or investment visions between the foreign and local partners.
The requirement that the activity be compatible with Saudi laws; some activities may only be granted with a certain percentage of Saudi participation.
Technical or administrative obstacles on the investment platform while entering or uploading the required documents.
Target Sector Trader
Affiliated Authority Ministry of Investment
Estimated Duration2 days
Gov Approval Window5 working days
Service Pricing9936
Government Fee12000

Mandatory Conditions

  • ✓ The presence of a Saudi partner professionally licensed with an investment license, provided that his share in the company to be not less than 25% according to the minimum limits specified by the type of activity.
  • ✓ For the shares' percentage of non-professionals, whether Saudi or Gulf, or holders of premium residence or non-professional companies not to exceed 30%
  • ✓ The non-Saudi professional company participating or contributing to the company should have a distinguished reputation in the field of the free profession.
  • ✓ The non-Saudi professional company participating or contributing to the professional company should has one or more representatives who have a license to practice the profession that replaces the activity of the professional company from the competent authority in the country of the non-Saudi professional company or in his country, in every profession in which the company participates or contributes professional.
  • ✓ The non-Saudi professional company must provide expertise and technical knowledge to the professional company and train Saudis in it.
  • ✓ Obtaining the approval of the competent authority in the Kingdom in cases where this is required.
  • ✓ In case that one of the partners was previously licensed by the Ministry of Investment, it must be clarified when filling in the partners' data while submitting the electronic application.
  • ✓ Determining the status of partners, whether professionals or non-professionals.
  • ✓ Payment of fees within 15 days.
  • ✓ The applicant must fill the data of the Saudi National Identity / Premium Residency / Regular Residency, if one of the partners holds any of them, or filling the commercial registration data for the participating Saudi companies when submitting the electronic application.
  • ✓ Required Data: (Email - Absher Phone Number - Phone Number in the Company's Country - Specifying Professional Activities - Partners & Managers IDs - City in which the License is Requested).

Required Documents

  • ✓ The financial statements for the last financial year of the foreign company requesting a license are certified by the Saudi Embassy
  • ✓ A copy of the commercial register of the participating foreign company certified by the Saudi Embassy.
  • ✓ A copy of the national IDs for partners and managers (Either Saudis or residents).
  • ✓ A copy of the professional license.
  • ✓ Entity's Articles of Association certified by the Saudi Embassy.
  • ✓ National Address.