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trade license in Saudi arabia

Company Trade License Saudi Arabia: 2023 Guidebook

In Saudi Arabia, a trade license is also referred to as a commercial registration or a commercial license. It is a legal document that allows a business to conduct commercial activities within the country.

Here’s everything you need to know about trade licenses in Saudi Arabia:

Types of Trade Licenses

There are three types of trade licenses available in Saudi Arabia:

  1. Commercial Registration for Saudi nationals
  2. Foreign Commercial Registration for foreign nationals
  3. Branch Commercial Registration for foreign companies

Eligibility Criteria for Trade License

To obtain a trade license in Saudi Arabia, the applicant must be at least 18 years old, have a valid residency permit, and possess the necessary qualifications and experience to operate a business.

Procedure to Obtain a Trade License

The process of obtaining a trade license in Saudi Arabia involves several steps, such as:

  • Reserving a company name
  • Obtaining a lease agreement for a business location
  • Registering the company with the Ministry of Commerce
  • Obtaining a tax identification number
  • Registering with the General Organization for Social Insurance

Validity and Renewal:

Trade licenses in Saudi Arabia are valid for one year and can be renewed annually. It is essential to renew the license before its expiry date to avoid penalties and legal consequences.

Benefits of Having a Business Trade License in Saudi Arabia

There are several benefits to having a trade license in Saudi Arabia. Here are some of the main advantages:

  • Legal Protection: A trade license provides legal protection to businesses by making them registered entities in Saudi Arabia. This ensures that the business is recognized by the government and has the legal right to operate in the country.
  • Access to Funding: Businesses with a trade license are eligible to apply for loans and grants from financial institutions in Saudi Arabia. Having a trade license also increases the chances of getting approval for funding from government organizations.
  • Credibility and Trust: Having a trade license enhances a business’s credibility and establishes trust with customers and suppliers. It indicates that the business is legitimate and operates according to the laws and regulations of Saudi Arabia.
  • Eligibility for Tenders: Businesses with a trade license can participate in tenders and bids for government contracts, which can be a significant source of revenue.
  • Access to Markets: With a trade license, businesses can access various markets in Saudi Arabia, including free zones and special economic zones. This can open up new opportunities for growth and expansion.
  • Business Visa: A trade license is necessary for foreign investors and entrepreneurs to obtain a business visa in Saudi Arabia, which allows them to stay and operate their business in the country.

What are the documents required to get the company License in Saudi Arabia

To obtain a trade license in Saudi Arabia, the following documents are generally required:

  • Application form: This is the official application form provided by the Ministry of Commerce and Investment in Saudi Arabia. It can be downloaded from their website or obtained from the commercial registration office.
  • Proof of residency: The applicant must provide a copy of their valid residency permit or iqama.
  • Passport copy: The applicant must provide a copy of their passport with a valid visa.
  • Lease agreement: A lease agreement for the business premises is required. It should be registered with the Ministry of Commerce and Investment in Saudi Arabia.
  • Commercial registration certificate: A commercial registration certificate is issued by the Ministry of Commerce and Investment in Saudi Arabia. It provides proof that the business is legally registered.
  • Municipal approval: Municipal approval is required for the business premises, which is obtained from the local municipality office.
  • Tax identification number (TIN): The applicant must obtain a tax identification number from the General Authority for Zakat and Taxation (GAZT).
  • Insurance certificate: The applicant must provide an insurance certificate for their business.
  • Chamber of Commerce certificate: The Chamber of Commerce certificate is required for some types of businesses.

What is the Timeline to start a Business in Saudi Arabia

The timeline to start a business in Saudi Arabia can vary depending on the type of business, the location, and the complexity of the registration process. Here is a general overview of the timeline:

  • Reserve a company name: The first step is to reserve a name for the company. This can be done online through the Ministry of Commerce and Investment (MOCI) portal. The process takes 1-2 days.
  • Obtain a lease agreement: The business needs to have a lease agreement for a commercial property in Saudi Arabia. This can take anywhere from a few days to several weeks, depending on the availability of suitable properties and negotiations with the landlord.
  • Obtain required approvals: The applicant needs to obtain approvals from various government agencies, such as the municipality, Chamber of Commerce, and the General Authority for Zakat and Taxation (GAZT). The time required for obtaining these approvals can vary depending on the complexity of the application and the responsiveness of the relevant agencies.
  • Register the business with MOCI: The business needs to be registered with the MOCI, which involves submitting the required documents and paying the registration fee. This process can take up to 2 weeks.
  • Obtain a tax identification number (TIN): The business needs to obtain a TIN from the GAZT. This process can take up to 2 weeks.
  • Open a bank account: The business needs to open a bank account in Saudi Arabia to operate legally. This process can take up to a few weeks, depending on the bank’s requirements.

How can We help you get your Trade License in Saudi Arabia

Saudi Company Formation is a business setup consultant who can help you to start your business in the Saudi Arabia location. By contacting us, we make the process simple for you by breaking everything down and by assisting you to get your trade license in a quick time without much hassle.


Saudi Company Formation

Come and discover how we can help you with your Trade License in Saudi Arabia. Also, you can contact us if you do not understand how to get your Trade License. So, get your phone and call us at +971 43 316 688. Our team will also expect your email at; so you can enjoy our services.

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