Saudi Arabia has made significant progress in its business environment thanks to economic and legislative reforms, positioning it as a leading investment destination in the Middle East. If you're considering launching your business in the Kingdom, this guide will walk you through the essential steps, types of companies, and required licenses.

Key Documents Required to Start a Company in Saudi Arabia

The exact documents may vary depending on the business activity and legal structure, but here’s a general list of key documents required to establish your company:

• A copy of your passport or national ID
  
  

• Articles of Association certified by the Ministry of Commerce
  
  

• Partnership agreement (if applicable)
  
  

• Proof of financial capability (bank letter or financial officer’s statement)
  
  

• List of board members and managers
  
  

• Business plan and annual financial projections
  
  

• Feasibility study and market analysis (for large-scale projects)
  
  

• Shareholder certificates (for joint-stock companies)
  
  

Types of Companies in Saudi Arabia

1. Limited Liability Company (LLC)
   
   

• Most common form. Suitable for small to medium partnerships, with limited liability for owners.
  
  

2. Sole Proprietorship (Single Person Company)
   
   

• Owned by one individual, offering personal liability protection.
  
  

3. Joint-Stock Company
   
   

• Capital is divided into shares; ideal for large-scale businesses with public investment.
  
  

4. Professional Partnership
   
   

• Formed by professionals such as lawyers or accountants under one legal entity.
  
  

5. Limited Partnership
   
   

• Flexible structure often used for startups, with differentiated liability roles.
  
  

6. Branch of a Foreign Company
   
   

• Allows international businesses to expand within Saudi Arabia under local laws.
  
  

Licenses Required to Operate a Business in Saudi Arabia

Commercial Licenses

• General Business License
  
  

• Wholesale & Retail License
  
  

• Import & Export License
  
  

Industrial Licenses

• Industrial Facility License
  
  

• Environmental License
  
  

• Utilities License (Electricity & Water)
  
  

Professional Licenses

• Engineering & Consultancy Offices License
  
  

• Legal & Accounting Practice License
  
  

• Transportation and Vehicle License
  
  

• Hospital and Pharmacy License
  
  

Agricultural Licenses

• Agricultural Activity License
  
  

• Agricultural Processing License
  
  

• Farm Labor Registration
  
  

Other Licenses

• Tourism Licenses (Hotels, Travel Agencies)
  
  

• Media Licenses (Publishing, Advertising)
  
  

• Sports & Financial Licenses
  
  

General Documents Required for Licensing

• National ID or passport copy
  
  

• Commercial registration
  
  

• Lease contract of business location
  
  

• Business activity details
  
  

• Basic financial statements
  
  

• Proof of government fee payment
  
  

 Why Choose Saudi Arabia for Business Setup?

Saudi Arabia offers a robust infrastructure, pro-investment regulations, and streamlined online procedures for company registration, making it a promising hub for both local and foreign entrepreneurs.

Ready to Start Your Business in Saudi Arabia?

Contact SidraHub's business experts today for a free consultation to help you through every step of the setup process. We're here to guide you toward success in the Saudi market.

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