In this article, we’ll guide you on how to get a foreign investment license in Saudi Arabia, also known as a MISA license, whether you’re a startup or a large corporation.
Having a foreign investment license from MISA (previously SAGIA) is evidence that you have a legitimate business recognized by the local authorities.
This not only gives your business legal backing but also opens the door for numerous business opportunities, from gaining the trust of customers and investors to accessing government incentives and winning large contracts.
In this guide, we will cover the following steps:
Step 1: Select the Right Business License
Step 2: Decide on a Structure for Your Venture
Step 3: Prepare the Required Documents
Step 4: Submit an Online Application
Step 5: Apply for the New Entity’s Name
Step 6: Draft Articles of Association (AoA)
Step 7: Apply for a Commercial Registration
How to Get a Foreign Investment License in Saudi: A Step-by-Step Guide
Navigating the process of obtaining and renewing a foreign investment license in Saudi Arabia is a vital part of ensuring your business operates successfully.
The journey to acquiring a foreign investment license is multifaceted, one that involves key steps, including preparing the necessary documents, choosing the right business structure, selecting a trade name for your Saudi entity, and lastly paying the application fee.
- Select the Right Business License
Depending on the nature and activities of your business, you will need to obtain a certain license.
Businesses expanding to Saudi can choose from eight types of MISA licenses; these include service, real estate, agriculture, mining, industrial, entrepreneurial, trade, and professional.
Check this guide for more information about the types of industry-specific licenses offered by MISA and eligibility requirements.
2. Decide on a Structure for Your Venture
Saudi Arabia offers a wide range of business types for foreign companies that are breaking into the local market.
These range from foreign company subsidiaries, a popular choice among businesses expanding to Saudi, limited liability companies (LLC), joint stock companies (JSC), regional headquarters (RHQ), and technical and scientific services offices (TSSO).
The decision to select a certain business structure influences various factors, including tax obligations, the amount of required paperwork, public perception, and compliance.
Picking the one that best suits your objectives is vital for meeting the foreign investment license requirements in Saudi Arabia.
3. Prepare the Required Documents
There are specific documents that need to be prepared before proceeding with the foreign investment license application; these include:
- Copy of the commercial registration of the entity in its original country, authenticated by a Saudi Embassy
- Financial statements for the last year, prepared by an internationally acclaimed legal office and authenticated by the Saudi Embassy
- Articles of Association/Memorandum of Association
(All documents need to be attested at the Ministry of Foreign Affairs and the Saudi Embassy, and companies that are a part of the HAUGE Convention need to have their documents attested by Apostille Seal)
4. Submit an Online Application
Listed below are all the details you need to know to ensure a smooth and successful application process.
- First, register an account on the MISA website
- Fill in your company details
- Create a username and password, then log in
- Verify your account through a mobile phone and/or email
- Complete the application form, comprising three sections:
- Entity Information
- Stakeholder Information
- Contact Details
If applying for two MISA licenses under one entity:
- Complete the main license application first
- Create a separate account for the other branch license
- Use main license details as shareholder information
- Maintain a minimum capital of 25,000 SAR for the branch, regardless of the main license’s capital
- Choose “فرع شركة ذات مسؤولية محدودة” (Branch of an LLC) as the legal form
5. Apply for the New Entity’s Name
You can reserve your business name through the Ministry of Commerce’s website. Make sure that your chosen name adheres to guidelines set forth by the relevant authorities and is available for use.
Foreign branch companies typically use their parent company’s name, while subsidiaries enjoy more flexibility in choosing their trade name.
If applying for two MISA licenses under one entity:
- Keep the reserved name for the main Saudi MISA license, and then reserve a new, unique name for the branch established with the other MISA license.
6. Draft Articles of Association (AoA)
This document sets out the legal existence of the company in new jurisdictions; typically, it outlines the shareholders’ rights and responsibilities, the company’s structure and the regulations that govern it.
Formalizing the AoA for the new entity is a vital prerequisite to obtaining a foreign investment license.
If applying for two foreign investment licenses under one entity:
- Use the name reserved for the main license; however, you have to list the activities under each of both licenses. For each, mention the license number and issuance date.
- Mention the total combined capital amount from both the main and second licenses and present them as a consolidated sum.
7. Apply for a Commercial Registration
After obtaining the license, a business can proceed with submitting a commercial licensing application through the Ministry of Commerce’s portal.
Having the CR ready is the next step toward completing the incorporation process as outlined in the 20-step expansion roadmap.
If applying for two MISA licenses under one entity:
- Apply for the main CR
- After, apply for the second branch CR via the Ministry of Commerce (MoC) electronic portal using the delegated person’s account
Foreign Investment License: Important Consideration for Global Companies
License Renewal
- Businesses are responsible for timely license renewal and providing details regarding any changes within the business and its scope of operations.
- The process should ideally start a few months before the expiration date to avoid any potential lapses in your operating status.
Costs of Foreign Investment License Acquisition
- Typically, it costs around SAR 12,000 to obtain a Saudi license.
AstroLabs is offering to cover this cost for companies expanding to Saudi Arabia through its platform. Those who are ready to make the move, please fill in this form to gain a headstart on your business plan for 2025 and benefit from additional competitively priced packages and exceptional incorporation services tailored to your business.