Industrial licenses in KSA: Documentations, Rules and Fees

The Kingdom of Saudi Arabia seeks to develop the industrial sector by improving the relevant industrial systems and legislation. The industrial sector in KSA is considered one of the most important vital sectors capable of competition, which contributes to achieving the Saudi Vision 2030; therefore, the Royal Commission has issued controls for obtaining industrial activity licenses for industrial facilities within the Kingdom, which we shall explain below:

Licenses for Industrial Facilities in KSA

An industrial facility is any facility that aims to convert raw materials into finished products; or that mix, form or change semi-finished products into finished products.

Industrial licenses are provided to all industries; i.e. heavy, light and transformative industries. Industrial licenses are regulated by the Common Industrial Regulatory Law, and the electronic service for obtaining the licenses is provided by the Ministry of Industry and Mineral Resources.

Required Documentation:

• A copy of the commercial registration of the facility certified by the Saudi Embassy, and a copy of the national ID, if one of the shareholders is a natural person (individual) holding the nationality of one of the GCC countries (in case this person's data is not registered in the ABSHAR system).
• The financial statements for the most recent fiscal year of the applicant company, certified by the Saudi Embassy.
• Industrial licenses are applied for through the website (the E-Services Portal), and the service is delivered within a maximum of two working days.

Rules and Restrictions 

• In case that one of the shareholders was previously licensed by Ministry of Investment, it must be clarified when filling in the shareholders' data while submitting the electronic application. 
• Premium residency holders are exempted from the above restriction. 
• The applicant must enter the data of the Saudi national identity/ Premium residence/ residence if one of the shareholders holds any of them, or the commercial registration data for the participating Saudi companies during the electronic application submission.
• The license applicant has to contact the Ministry of Industry and Mineral Resources to obtain an industrial license, and also the General Authority for Meteorology and Environmental Protection to obtain environmental approval.

Licenses Fees 

• License fees are 2,000 Saudi Riyals yearly with a maximum of five years.
• License fees for the first year subscription to obtain services from the Investor Relations Centers of the Ministry of Investment are 10,000 Saudi Riyals; then, the yearly subscription fees in the following years are 60,000 Saudi Riyals.
• Service fees shall be paid within (60) days from the bill issuance date. In case of delay, the service shall be canceled and a new application has to be submitted.