For foreign entities, getting a MISA license in Saudi Arabia is the first step toward setting up and running a business.
To demystify the process, we’ve put together this guide that walks you through the entire journey to obtaining the compulsory license, from start to finish.
Step-By-Step Procedures on How to Obtain a MISA License
Listed below is a step-by-step guide outlining the fundamental prerequisites that ought to be met before getting started.
1. Determine Your Business Structure: The first step is to choose the appropriate legal structure for your business, be it a limited liability company (LLC), one-person company, joint stock company, foreign company branch, or solidarity professional company.
The choice has a direct impact on business aspects such as ownership, liability, and taxation.
2. Prepare Necessary Incorporation Documents: Gather all the required documents, such as:
- 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
NOTE:
All documents need to be attested at the Ministry of Foreign Affairs and the Saudi Embassy.
Companies that are a part of the HAUGE Convention need to have their documents attested by Apostille Seal.
3. Online Application Submission: To get started, you should:
- 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
NOTE: 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
4. Register a Business Name: Reserve a company name through the Ministry of Commerce’s website.
Foreign branch companies typically use the parent company’s name, while subsidiaries have more flexibility in trade name selection.
NOTE: 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
5. Draft Articles of Association (AoA): The AoA is a legal document that outlines the rules and regulations that govern the company’s operations and includes information on the rights and responsibilities of stakeholders.
When applying for the MISA license, you will need to draft an AoA for the business, regardless of how many licenses you hold.
NOTE: If applying for two MISA 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.
6. Commercial Registration: Once your MISA license is approved, the company is in a position to acquire a commercial registration (CR) from the Ministry of Commerce to complete the establishment process.
NOTE: 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
Related read: Business Setup in Saudi Arabia for Foreigners: Understanding the 20-Step Roadmap
General MISA Licensing Prerequisites in Saudi Arabia
Why Must Foreign Businesses Obtain a MISA License?
A MISA business license is a legal requirement for all foreign entities operating in Saudi Arabia; it is proof that that entity, irrespective of its size or scope, meets all the necessary standards set forth by concerned authorities and demonstrates a commitment to operate ethically within the bounds of the country’s legal frameworks.
Having a valid MISA license grants a company the opportunity to engage in commercial activities in Saudi Arabia and instills trust among its customers, partners, and investors. This, in turn, enhances the overall business reputation and gives it a competitive edge in the marketplace.
Failure to obtain the MISA license, on the other hand, can lead to severe consequences, including substantial fines and legal actions that can cause reputational damage as well as a potential exit from the market.
Different Options of MISA Licenses in Saudi Arabia
MISA offers a wide array of licenses, depending on the nature and type of the business activity. Discover the most common MISA licenses and their requirements here.
The journey to acquiring a MISA license is one that involves a series of important steps, including preparing the required documents, submitting an online form, and making payment electronically.
With the help of market entry firms like AstroLabs, foreign businesses can improve the overall efficiency of the licensing procedures in Saudi Arabia and minimize the chances of errors, allowing them to save time and costs while focusing on core business operations.
When Do You Need to Renew the MISA License in Saudi Arabia?
A business license in Saudi Arabia is valid for one year. It is advisable to initiate the renewal process ahead of time to avoid business interruptions.
Staying in compliance with regard to MISA business license acquisition and renewal procedures sets the business up for long-term growth, further contributing to the vibrant Saudi economic landscape.
Need assistance in fulfilling post-setup compliance-related areas such as MISA license renewals? Book a call now to discuss your business growth needs.
How much does it cost to issue a MISA license?
It costs around SAR 12,000 to get your license. This amount is covered by AstroLabs for companies expanding to Saudi via our platform before the end of the year on December 31st. Businesses ready to make their move to Saudi may benefit from a discounted price on all our packages if they apply to work with AstroLabs before that deadline.
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