The Complete Guide to Trade Licenses in Saudi Arabia (2025)

A trade license in Saudi Arabia, officially termed a Commercial Registration (CR), is the essential document that legalizes business activities from import/export and wholesale, to consulting, manufacturing, and specialized services.

The Kingdom’s proactive business reforms and streamlined processes mean that registering and maintaining a trade license is more efficient than ever, supporting both local entrepreneurs and international investors.

This guide covers everything you need to know about obtaining a trade license in Saudi Arabia in 2025, including license types, process steps, requirements for foreign investors, compliance obligations, and practical tips for success.

Understanding Trade Licenses

In Saudi Arabia, a trade license enables you to legally operate, contract with partners, and access banking and government services. No commercial activity is permitted without this license.

There are eight main business license categories in Saudi Arabia:

Commercial (Trade) License
Service License
Industrial License
Professional License
Entrepreneurial License
Agricultural License
Real Estate License
Mining License

Commercial (Trade) License

This is the most sought-after license, particularly for import/export, wholesale, and retail trading. It provides the right to buy, sell, import, and export goods within or from Saudi Arabia. Foreigners and locals can both apply, though requirements differ depending on nationality and business structure.

Key Regulatory Authorities

Ministry of Investment (MISA): Issues foreign investment and specialty licenses. Handles applications for wholly foreign-owned businesses.

Ministry of Commerce: Oversees company registration and the issuance of the Commercial Registration (CR).

Municipalities & Other Regulators: Certain business types (e.g., food, pharmaceuticals) may require additional sectoral permits.

Types of Trade Licenses: Ownership and Eligibility

License Type	Who It’s For	Foreign Ownership	Key Requirements
Commercial (Trade)	Traders/importers/exporters	100% permitted*	SAR 30M capital, 3 foreign branches, special filings
Service	IT/logistics/consultancy firms	100% permitted	SAR 25,000 capital, 1-year ops history outside KSA
Entrepreneurial	Startups/innovative ventures	100% permitted	IP/VC backing or Saudi endorsement
Industrial	Manufacturing	100% permitted	SAR 25,000+ capital, 1-year ops history
Professional	Legal, engineering, consulting	100%/Joint Venture	4 branches abroad for 100% foreign, strict vetting

* Additional investment milestones and expansion history outside KSA apply.

Foreign companies can fully own their business in most sectors, though some industries (like law or medicine) may require a Saudi partner or extra credentials.

Latest Reforms: A Unified & Digital Company Registration System

As of 2025, the Saudi Commercial Register operates under a new unified electronic system:

Single national registration: No need for regional branch filings; one digital CR covers all locations.

Annual confirmation: All companies must update/confirm their registration information digitally each year before expiry.

Integrated platforms: Online applications via the Ministry of Commerce or “Meras” platform, minimizing paperwork and government visits.

Real-time trade name checks: Immediate validation against new strict naming guidelines to avoid overlap and legal issues.

This has dramatically reduced setup times, with processing now often taking just a few days for straightforward companies.

Step-by-Step: Trade License Registration Process (2025)

1. Business Plan & Structure

Prepare a detailed business plan outlining objectives, market, and financials.
Select the legal entity: LLC, joint stock company, branch, etc.

2. Trade Name Reservation

Choose a unique trade name in line with new 2025 standards.
Reserve via the official MoC portal.

3. Secure Premises

Obtain a lease or ownership agreement for your physical office space (required—virtual offices not accepted).

4. Documentation & Capital Requirements

Memorandum/Articles of Association.
Valid IDs/passports for owners/investors.
Proof of share capital (SAR 25,000 to SAR 30 million+, depending on license and ownership structure).
If foreign: proof of operations outside KSA, financials, legalizations.

5. Ministry Approvals & Special Licenses

Obtain approval from MISA for foreign ownership or special sectors.
Apply for additional regulatory permits if operating in restricted industries.

6. Digital Application Submission

Apply for commercial registration (CR) via the Ministry of Commerce’s digital portal.
Submit notarized, attested documents online.

7. Issuance & Post-Registration

CR and trade license are typically granted (electronically) within several days to three weeks, depending on the business type and completeness of documents.
Register for VAT, ZATCA (tax authority), and municipal certificates as required.

Foreign Investors: Special Requirements

100% Foreign Owned Commercial License: Must show 3 branches outside Saudi Arabia and inject at least SAR 30 million capital in year one, with SAR 170 million investment in 5 years.

Joint Venture Route (with Saudi Partner): No global branch requirement; minimum SAR 26.6 million capital, 25% Saudi shareholding.

GCC Nationals: Treated as local investors for most sectors, with substantially lower hurdles.

Annual Compliance and Renewals

Annual Registration Confirmation: All companies must digitally confirm and/or update commercial registration details annually. Missing this leads to penalties or suspension.

License Renewal: Trade licenses and industry-specific permits typically require annual renewals. Fees depend on activity and entity type, often ranging SAR 1,000–10,000 plus municipality and chamber memberships.

Data Accuracy: Keep all company info including addresses, owners, and activity current to avoid legal issues.

Timeline and Costs

Setup Timeline: 1–3 months typical; as little as 19 days for basic LLCs, longer for complex or highly regulated sectors.

Costs: SAR 30,000–60,000 for typical setups (includes registration, municipal, legal, translation, and licensing fees). Costs are significantly higher for 100% foreign-owned commercial licenses.

Importance of Compliance

Obtaining a valid trade license is essential to:

Secure banking and operate legally
Enter into contracts
Import/export goods through Saudi Customs
Access government incentives and support
Avoid severe penalties and business closure

Practical Tips for Entrepreneurs

Seek expert advice: Regulations and requirements change frequently; consulting with a reputable business services provider or legal advisor is highly recommended, especially for foreign entities.

Leverage digital platforms: Use online registration and annual update tools to save time.

Plan capital and cash flow: Meet the upfront and ongoing capital requirements to maintain compliance.

Review sectoral regulations: Check if your intended activity is in a “restricted” or “licensed” category and secure additional approvals as needed.

Partner with Duvolks for a Seamless Experience

Securing a trade license in Saudi Arabia is your essential gateway to tapping into the Kingdom’s fast-evolving business landscape.

The reforms rolled out as part of Vision 2030, the fully digital registration process, and universal eligibility for both foreign and local investors make 2025 the perfect time to launch or expand your venture in Saudi Arabia.

Wondering how to start trading business in Saudi Arabia? Don’t navigate the licensing maze alone. Contact Duvolks for an initial consultation and turn compliance into your competitive edge.

Other Blogs

Learn More About Business Setup in Saudi Arabia

Download our brochure and get insights into the cost of licenses, governmental fees for different portals, and more.

Author Bio

Salman Thorop is the Founder of DuVolks, with a deep-rooted presence in Saudi Arabia since 2009. His entrepreneurial journey began in 2014 when he established his business under the SAGIA (now MISA) license. A compliance expert by profession, Salman has developed extensive expertise in Saudi Arabia’s regulatory landscape and specializes in business setup and PRO services. He maintains a keen understanding of government initiatives and policy changes through active engagement with official Saudi government Twitter handles.

The Complete Guide to Professional License in Saudi Arabia

July 29, 2025