How long does it take to complete commercial registration in Saudi Arabia and what documents and fees are required?

Hello,

Thank you for reaching out. I understand you are looking to start a small consultancy in Riyadh as a foreign resident. Below you will find a detailed overview of the process, requirements, and costs for obtaining a Commercial Registration (CR) in Saudi Arabia.

Process and Timeline
The process of obtaining a Commercial Registration (CR) in Saudi Arabia has been significantly streamlined, and for many businesses, the CR can now be issued within a few days. The entire process is largely digital.​

Here are the practical steps involved:

Obtain a Foreign Investment License (MISA License): Before you can apply for a CR, you must obtain an investment license from the Ministry ofInvestment (MISA). This is a crucial first step for all foreign investors and typically takes 5 to 10 business days to be issued, assuming all documents are in order.​

Choose a Business Entity and Reserve a Name: You will need to decide on the legal structure of your company, with a Limited Liability Company (LLC) being a common choice for foreign investors. You must also reserve a unique trade name for your business through the Ministry of Commerce's online portal. Non-Arabic names are now permitted.​

Submit Articles of Association (AoA): You will need to prepare and submit your company's Articles of Association. This document outlines the company's structure, ownership, and management framework and must be notarized.​

Register with the Ministry of Commerce (MOCI): After securing the MISA license and business name, you will fill out an online application on the Ministry of Commerce portal. This requires detailed information about your business activities, owners, and capital.​

Pay Fees and Collect CR Certificate: Once the application is submitted and approved, you will pay the required fees online. You can then download your digital CR certificate, which serves as your legal license to operate in Saudi Arabia.​

Required Documents
To ensure a smooth application process, you should prepare the following documents:​

Copy of your valid passport and visa stamps.​

Copy of your Saudi residency permit (Iqama) for all shareholders and managers.​

A No-Objection Certificate (NOC) if you are currently employed in the Kingdom.​

Proof of a physical business address in Saudi Arabia (e.g., a lease agreement).​

Notarized and translated Articles of Association.​

A board resolution from the parent company if you are setting up a branch office.​

Ownership and Sponsorship Conditions
Saudi Arabia has made significant reforms to attract foreign investment. For many sectors, including consultancy, 100% foreign ownership is now permitted, meaning you do not need a local Saudi partner or sponsor.​

However, you must still comply with "Saudization" (Nitaqat) regulations, which mandate hiring a certain percentage of Saudi nationals based on your company's size and sector.​

Fees and Costs
The total cost can vary, but here is a breakdown of the primary government fees you should anticipate:

MISA Investment License:

Application Fee: SAR 2,000 per year.​

First-Year Subscription: SAR 10,000 to access investor services.​

Subsequent Years: The fee can increase to SAR 60,000 in subsequent years depending on the business activity.​

Commercial Registration (CR): The fee for the CR certificate itself is typically between SAR 1,200 and SAR 2,000.​

Chamber of Commerce: An annual membership fee of approximately SAR 2,000 is required.​

Municipality License (Baladiya): This ranges from SAR 1,000 to SAR 5,000, depending on your office location and business activity.​

Other Costs: You should also budget for notarization, translation services (SAR 1,000 - SAR 3,000), and potential professional fees if you hire a law firm or consultancy for assistance.​

Overall, the initial setup costs can range from approximately SAR 15,000 to SAR 30,000 ($4,000 to $8,000 USD), not including office rent or capital requirements.​

I hope this detailed overview is helpful for your planning. The process has become much more straightforward for foreign investors.

Should you require more personalized guidance or step-by-step assistance through the entire process, I would be happy to offer my consulting services.

Thank you for reaching out. I understand you are looking to start a small consultancy in Riyadh as a foreign resident. Below you will find a detailed overview of the process, requirements, and costs for obtaining a Commercial Registration (CR) in Saudi Arabia.

1. Process and Timeline
   The process of obtaining a Commercial Registration (CR) in Saudi Arabia has been significantly streamlined, and for many businesses, the CR can now be issued within a few days. The entire process is largely digital.​

Here are the practical steps involved:

• Obtain a Foreign Investment License (MISA License): 

Before you can apply for a CR, you must obtain an investment license from the Ministry of Investment (MISA). This is a crucial first step for all foreign investors and typically takes 5 to 10 business days to be issued, assuming all documents are in order.​

Choose a Business Entity and Reserve a Name: 

You will need to decide on the legal structure of your company, with a Limited Liability Company (LLC) being a common choice for foreign investors. You must also reserve a unique trade name for your business through the Ministry of Commerce's online portal. Non-Arabic names are now permitted.​

• Submit Articles of Association (AoA): 

You will need to prepare and submit your company's Articles of Association. This document outlines the company's structure, ownership, and management framework and must be notarized.​

• Register with the Ministry of Commerce (MOCI): 

After securing the MISA license and business name, you will fill out an online application on the Ministry of Commerce portal. This requires detailed information about your business activities, owners, and capital.​

• Pay Fees and Collect CR Certificate: 

Once the application is submitted and approved, you will pay the required fees online. You can then download your digital CR certificate, which serves as your legal license to operate in Saudi Arabia.​

1. Required Documents

• To ensure a smooth application process, you should prepare the following documents:​
• Copy of your valid passport and visa stamps.​
• Copy of your Saudi residency permit (Iqama) for all shareholders and managers.​
• A No-Objection Certificate (NOC) if you are currently employed in the Kingdom.​
• Proof of a physical business address in Saudi Arabia (e.g., a lease agreement).​
• Notarized and translated Articles of Association.​
• A board resolution from the parent company if you are setting up a branch office.​
•  
• Ownership and Sponsorship Conditions
  Saudi Arabia has made significant reforms to attract foreign investment. For many sectors, including consultancy, 100% foreign ownership is now permitted, meaning you do not need a local Saudi partner or sponsor.​ However, you must still comply with "Saudization" (Nitaqat) regulations, which mandate hiring a certain percentage of Saudi nationals based on your company's size and sector.​

1. Fees and Costs
   The total cost can vary, but here is a breakdown of the primary government fees you should anticipate:

• MISA Investment License:
• Application Fee: SAR 2,000 per year.
• First-Year Subscription: SAR 10,000 to access investor services.
• Subsequent Years: The fee can increase to SAR 60,000 in subsequent years depending on the business activity.
• Commercial Registration (CR): The fee for the CR certificate itself is typically between SAR 1,200 and SAR 2,000.
• Chamber of Commerce: An annual membership fee of approximately SAR 2,000 is required.
• Municipality License (Balady): This ranges from SAR 1,000 to SAR 5,000, depending on your office location and business activity.
• Other Costs: You should also budget for notarization, translation services (SAR 1,000 - SAR 3,000), and potential professional fees if you hire a law firm or consultancy for assistance.

Overall, the initial setup costs can range from approximately SAR 35,000 (10,000 USD), Excluding VAT & Govn. fees 

I hope this detailed overview is helpful for your planning. The process has become much more straightforward for foreign investors.

Much is accomplished online nowadays.

So, whether you are able to establish an office in the Kingdom that is wholly owned by one or more foreign parties, and obtain commercial registration for such entity, and whether or not a sponsor or agent is required may depend, in part, on the industry your business is in and the anticipated business activities you are looking to have licensed and the corporate form you have chosen for your local office . 

Time frames for CRs and Licenses vary, and depend in part on the time necessary to assemble and authenticate the supporting documentation for your company's application.  Again, varies in part due to chosen corporate form and industry / business activities.

Jason Huf