Do you want to grow your business in Saudi Arabia or Do you want to establish your company in the KSA? You must be well aware of the complications and legal complexities involved in it. Business operation management and compliance with the local business laws can be overwhelming and intimidating for you including the acquisition of various licenses like MISA license Saudi Arabia.
This article will outline the information related to the MISA license in Saudi Arabia and will take you through the steps involved in obtaining it.
What is the MISA (Ministry of Investment for Saudi Arabia) License?
So, what is MISA license?
MISA License Saudi Arabia is actually a license for business investment and operations issued by Ministry of Investment for Saudi Arabia, or SAGIA (formerly). Obtaining a MISA License is vital for any foreign investor or company to establish and operate their businesses within the KSA. A MISA license is actually a recognition of your investment on the legal level to let you conduct business activities hassle-free.
Benefits of MISA License
Having MISA license is crucial for every organization looking for investment and business establishment in the country’s rapidly growing business environment. Here are some benefits of the MISA license in Saudi Arabia:
- 100% Ownership:
Through a MISA license in Saudi Arabia, foreign investors can own 100% of business ownership in certain sectors without the need for a sponsor or kafeel if you say it locally. It provides you full authority over your business operations.
- Tax Incentives:
You will get valuable and rewarding tax incentives and exemptions through MISA license, including corporate tax, and waivers in customs duties.
- Fast-track Procedures:
Through a MISA license, one can set up business in Saudi Arabia by expediting documentation procedures.
- Access to Government Support:
MISA license-holder companies may avail of the government’s support under the policies of Vision 2030. It includes regulatory compliance assistance, recruitment for the workforce, and creating strategies to enter the market.
- Residency for Investors:
MISA license-holder companies get permanent residency permits in Saudi Arabia, which lets them manage business operations in KSA easily and efficiently.
Steps to Obtaining a MISA License in Saudi Arabia
Obtaining a MISA license Saudi Arabia ensures every foreign company to successfully operate business in Saudi Arabia. Here are some steps crucial to follow to obtain this trade license in the KSA.
Structure Your Company
First of all, you have to decide if your company is LLC, subsidiary, or MNC branch in Saudi Arabia. It is necessary to do to obtain a license and maintain your legal status in Saudi Arabia. The selection of the right company structure with proper planning contributes well to the business’s rapid growth.
Prepare the Required Documentation
You have to fulfill all the prerequisites if you want a seamless MISA license application process. The essential documents include your detailed business plan, copies of your passport, articles of association, visa, and relevant paperwork.
Register Business Name
The name of your business in Saudi Arabia depends on the type of company’s structure. For instance, a company’s branch in Saudi Arabia will get a license under the parent company’s same name. Subsidiaries however are allowed to use appended words with the same name of the parent company.
Drafting the Articles of Association
Articles of Association (AoA) is actually a document that outlines all the operational rules that define how you will run the company. It should be drafted well and should keep in mind the Saudi Rules for business operations. We will help you out with this, do not worry.
Commercial Registration Issuance
Now you have to apply for your company’s commercial registration certificate. Through this step, your company will be get Commercial Registration in Saudi Arabia with the Ministry of Commerce to provide legal status to your business operations in Saudi Arabia.
MISA License Fees
The registration fee for a MISA license is SAR 60,000 annually and the same amount is MISA license fees for renewal. If you want to go for commercial registration and license renewal, the fees will be SAR 1,200 annually. You also have to get the Chamber of Commerce registration and their fee is SAR 10,000 annually.
Key Findings
Here are some of the key findings that will help you out:
1. Importance of MISA License:
The MISA license is crucial for foreign investors, MNCs, or investors that want to establish and grow in the KSA.
2. Benefits of MISA License:
- 100% Business Ownership
- Incentive through taxes
- Fast-track business set-up procedures
- Extensive government support
- Permanent residency permit
3. Steps to Obtain a MISA License Saudi Arabia:
- Decide Company Structure
- Complete documentation
- Register your business name
- Draft Articles of Association
- Get a commercial registration certificate from the Ministry of Commerce
- Pay license fees
Let’s wrap up this guide on MISA licenses in Saudi Arabia. We have walked you through all the necessary aspects you need to know briefly so that you can get an idea of how to set up your business in Saudi Arabia. All of the key points highlight what is the significance of the MISA license, what are the benefits, and how you can obtain the MISA license in Saudi Arabia. Top of Form
If you want any assistance regarding the company formation in Saudi Arabia, you can contact us any time and our team will help you in every step from getting a MISA license to establishing a fully operational company.
