How to Apply for a Commercial License in Saudi Arabia in 2024?

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How to Apply for a Commercial License in Saudi Arabia in 2024

In today’s globalized business landscape, Saudi Arabia is a promising market for companies seeking to establish their presence in the Middle East. With its strategic location, robust economy, and ongoing economic reforms, the Kingdom presents lucrative business opportunities across various sectors. However, navigating the legal and regulatory requirements can be complex, particularly when obtaining a commercial license. This comprehensive guide will walk you through the steps to apply for a commercial license in Saudi Arabia in 2024, ensuring a smooth and successful business setup.


Obtaining a commercial license in Saudi Arabia is crucial for any business seeking to operate legally within the Kingdom. This license not only grants you the legal right to conduct commercial activities but also provides access to a wide range of benefits and incentives the Saudi government offers. From tax advantages to investment opportunities, having a commercial license can open doors to a wealth of prospects for your business.

It’s important to note that the process of applying for a commercial license in Saudi Arabia may vary depending on the type of business activity, the legal structure of your company, and any specific regulations that apply to your industry. However, this guide will provide a general overview of the steps involved, ensuring you understand the requirements and procedures.

Determine Your Business Activity and Legal Structure

Before initiating the commercial license application process, clearly defining your business activity and legal structure is crucial. Saudi Arabia offers various options for business entities, including limited liability companies (LLCs), joint-stock companies, and branch offices of foreign companies.

Determining the appropriate legal structure for your business is essential, as it will impact the requirements and procedures for obtaining a commercial license. For instance, the process may differ for a Saudi-owned LLC compared to a foreign company establishing a branch office in the Kingdom.

It’s advisable to consult with legal and business experts who specialize in Saudi Arabian regulations to ensure you select the most suitable legal structure for your business goals and objectives.

Choose a Business Location

Saudi Arabia is a vast country with several economic hubs and free zones. Choosing the right location for your business operations is a strategic decision that can significantly impact your success. Some of the major commercial centers in Saudi Arabia include:

  1. Riyadh: The capital city and a central hub for finance, services, and government institutions.
  2. Jeddah: A thriving commercial center and gateway to the holy cities of Mecca and Medina.
  3. Dammam: An industrial powerhouse and home to the vast Dammam Metropolitan Area.
  4. Khobar is part of the Eastern Province and a prominent oil and gas industry hub.

Additionally, Saudi Arabia has several economic cities and free zones that offer unique incentives and benefits for businesses operating within their boundaries. These include the King Abdullah Economic City (KAEC), Jazan Economic City, and the various free zones scattered throughout the Kingdom.

When selecting a business location, consider factors such as proximity to your target market, access to skilled labor, infrastructure, and any industry-specific requirements or incentives offered by the respective region or free zone.

Gather Required Documents

To apply for a commercial license in Saudi Arabia, you must prepare a comprehensive set of documents. While the specific requirements may vary based on your business activity and legal structure, here are some of the commonly required documents:

  1. Business plan and feasibility study
  2. Articles of Association and Memorandum of Association
  3. Proof of capital and financial statements
  4. Copies of shareholders’ or partners’ identification documents
  5. Lease agreement or property ownership proof for the business premises
  6. Zoning approval for the selected business location
  7. Any industry-specific licenses or permits (e.g., for healthcare, education, or manufacturing)
  8. Power of Attorney documents (if applicable)

It’s advisable to consult with legal professionals or business setup consultants to ensure you have all the necessary documents prepared accurately and in compliance with the latest regulations.

Submit Your Application and Obtain Approvals

With your documents in order, you can submit your commercial license application to the relevant authorities in Saudi Arabia. The primary governmental entity responsible for processing commercial license applications is the Ministry of Commerce and Investment (MCI).

The application process typically involves the following steps:

  1. Register with Abeer: Abeer is an online platform established by the MCI to streamline the business registration process. You must create an account and provide the necessary information about your business.
  2. Submit the Application: You can upload the required documents and submit your commercial license application electronically through the Abeer platform.
  3. Obtain Approvals: Your application will undergo review and approval processes by various government entities, such as the MCI, the Ministry of Labor, and relevant municipal authorities. This process may involve site inspections and additional document submissions.
  4. Pay Fees: Once your application is approved, you must pay the applicable fees to obtain the commercial license.
  5. Receive the Commercial License: Upon completing the process and payment of fees, you’ll receive your commercial license, which grants you the legal right to operate your business in Saudi Arabia.

It’s important to note that the application process can be time-consuming and may involve additional steps or requirements depending on your specific business activities. Consulting with experienced business setup professionals can help streamline the process and ensure compliance with all relevant regulations.

Location: Saudi Arabia

With its strategic location at the crossroads of Europe, Asia, and Africa, Saudi Arabia offers a wealth of opportunities for businesses seeking to establish a presence in the Middle East region. From major commercial centers like Riyadh, Jeddah, and Dammam to emerging economic hubs and free zones, the Kingdom provides diverse locations to suit various business needs.

When considering a location for your business in Saudi Arabia, it’s essential to carefully evaluate factors such as infrastructure, access to skilled labor, proximity to your target market, and any industry-specific incentives or regulations that may apply to your chosen sector.

Read our blog to understand What Are the New Business Regulations in Saudi Arabia?


At Incorpyfy, we understand the complexities of obtaining a commercial license in Saudi Arabia. As a leading business setup company in Saudi Arabia, our team of experts is dedicated to guiding you through the entire process, ensuring a smooth and successful establishment of your business in the Kingdom.

With our in-depth knowledge of Saudi Arabian regulations and extensive experience in the region, we can assist you in selecting the most suitable legal structure, preparing the required documents, and navigating the application process efficiently. Our services extend beyond business license acquisition, as we offer comprehensive support for company formation, corporate services, and ongoing compliance assistance.

Whether a local entrepreneur or an international company seeking to expand into Saudi Arabia, Incorpyfy is your trusted partner for seamless business setup and license acquisition. Our commitment to excellence and personalized approach ensures that your business objectives are met with the highest standards of professionalism and compliance.

Take the first step towards unlocking the vast potential of the Saudi Arabian market by contacting Incorpyfy today. Our team of experts is ready to guide you through obtaining your commercial license and establishing a successful business presence in this dynamic and thriving economy.

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