What is Professional License with Saudi Shareholder and How to Get it?

The Kingdom of Saudi Arabia seeks to diversify income sources in line with the Saudi Vision 2030, by increasing foreign investment and enhancing foreign investors' contribution to the economic growth alongside Saudi contribution. 

The Kingdom of Saudi Arabia has a favorable strategic location which makes it an attractive foreign investment environment; therefore, the Royal Commission has established controls for the professional activities of foreign and Saudi shareholders inside the Kingdom.

What is a Professional License with Saudi Shareholder?

The professional licenses with Saudi shareholders are granted to foreign companies wishing to conduct professional activities in the Kingdom with a Saudi shareholder.

The Ministry of Commerce is the competent authority granting the licenses via the Ministry Website. The license is issued within a maximum of two working days.

What are the Required Documents?

The documents required for obtaining professional licenses with Saudi shareholders differ from those required for non-professional shareholders. 

As for Professional Shareholders:

• A copy of the commercial registration of the foreign shareholder's enterprise (indicating its professional activity) certified by the Saudi Embassy 
• The financial statements for the most recent fiscal year of the foreign applicant company, certified by the Saudi Embassy, in the absence of a trade registry for a previous professional activity licensed by the Ministry of Commerce.
• A copy of the national ID, if one of the partners 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), and a copy of the professional license of every shareholder certified by the competent authorities in KSA.

As for Non-Professional Shareholders:

• A copy of the commercial registration of the foreign shareholder's enterprise certified by the Saudi Embassy; a copy of the national ID if one of the partners is a natural person (individual) holding the nationality of one of the GCC countries; a copy of the national ID if one of the shareholders is a Saudi national; OR a copy of the Premium Residence if held by one of the shareholders.
• The financial statements for the most recent fiscal year of the foreign applicant company, certified by the Saudi Embassy.

What are the Rules and Restrictions?

• The presence of a professionally licensed Saudi shareholder with a minimum share of 25%, and the foreign capital share shall not be less than 20 million Saudi riyals, with a maximum foreign share of 75%
• The percentage of shares of non-professionals, (Saudi, GCC citizens, holders of Premium Residence, or non-professional companies) shall not exceed 30%. 

• The non-Saudi professional company with shares must have a distinguished reputation in the field of the relevant profession.
• The non-Saudi professional company with shares must have one or more representatives who are licensed to practice the relevant profession and are certified by the competent authority in the country of the non-Saudi professional company or their homeland. This applies to every field of profession in which the company conducts business.
• The non-Saudi professional company must provide the technical expertise and know-how to the professional company and train the working Saudi staff.
• Obtain the approvals of the competent authority in KSA whenever necessary.

If a shareholder is previously licensed 

• In case one of the shareholders is previously licensed by the Ministry of Investment, it must be clarified when filling in the shareholders' data while submitting the electronic application. 
• The applicant must fill in the data of the shareholder's Saudi national ID, Premium residence, or residence if any. Also, the commercial registration data for the shareholding Saudi companies must be filled in while submitting the electronic application.

What is the Professional License with a Saudi Shareholder Fee?

• 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.

Navigating the complexities of obtaining a professional license in Saudi Arabia can be daunting. Our team of experienced legal professionals at Sadany and Khalifa Law Firm is here to guide you through the process, ensuring compliance with all regulations and maximizing your chances of success.

Contact us today for a personalized consultation and let us help you secure the necessary licenses to establish your business in the Kingdom.