Investment license, the first document for investment in the kingdom of Saudi Arabia. TMinistry work Investment On the development of the sector The Economist This is done by studying the available opportunities, improving them and taking advantage of them to attract investors at the local and foreign levels.
And you know Investment license However, it is the first and main tool for an investor to start his business legally and officially inside the kingdom of Saudi Arabia, and in this article we will review everything you need to know about the investment license , its types , conditions, available investment opportunities and access methods, as well as the facilities granted to the Investor inside the kingdom in accordance with the new investment law.
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What is meant by an investment license
It is an electronic license issued through the e-services portal on the Invest in Saudi platform affiliated to the Ministry of investment.after obtaining this license , an investor, whether local or Foreign, can start his investment in Saudi Arabia directly.
This license is usually issued with several important data such as:
- Investor data: Name of the investor,company or nationality and address of the headquarters.
- Details of investment activity: Affiliated sector activity ( agricultural/ industrial / financial / commercial ....) And the type of activity authorized within this sector .
- License term : Date of issue and license expiration date.
Necessary documents for obtaining an investment license
When looking at this item at the beginning of your investment journey, you can find out how much the Saudi government wants to facilitate the start of investment in the kingdom, according to the investment license, the required documents are:
1- Copy of the commercial register The parent company is accredited by its country of origin and certified by the Saudi Embassy in the company's home country.
2- Financial statements For the last financial year, provided that it is prepared by an international legal office ( recognized in the Kingdom ) and certified by the Saudi Embassy.
Important notice In some cases, the investor may be asked for additional documents to issue: Investment license Depending on the type of activity and the required investment.
What are the types of investment license in the kingdom
- Comprehensive foreign investment license ( whole investment license )This license covers all commercial activities and allows foreign companies to participate in New and existing projects in the kingdom
- Joint venture license ( joint venture license ): This license is valid for foreign companies in partnership with Saudi companies, but it only allows participation in profits and losses.
- Limited investment license ( limited investment license ): The name of this focus is some specific activities and the foreign company specifies only the activities that it considers to be engaged in.
- Local investment license( local investment license ): This type of license includes local companies that want to participate in new projects in the kingdom.
It is important to determine the type of Investment license Compliance with the nature of your investment and the necessary conditions to obtain it before submitting your application.
Conditions for obtaining a foreign investment license
To get the Investment license There are several conditions that must apply to the investor such as:
1-the investor should not be included in the international sanctions lists.
2-the compatibility of his investment activity with the activities allowed for foreigners in the kingdom.
3-compliance with all Saudi regulations and instructions.
4-achieving the minimum required capital for some activities, and this varies according to the sector required to invest in.
Conditions for obtaining a local investment license (for Saudis )
To get the Investment license A Saudi investor must meet some of the conditions set by the Ministry of investment as follows:
- Compatibility of investment activity with regulations: The investment activity must be licensed and allowed in the kingdom.
- Proof of financial solvency: The investor must submit a bank statement or a financial balance sheet showing the ability to finance the investment project.
- Commercial registration: The investor must have a valid Saudi commercial registration.
- Approval from the competent authorities: Whereas, in some sectors, such as the health, education and energy sectors, approval is required from the competent authorities and the relevant ministries
- Lack of financial or legal precedents: The investor must not have been subjected to a previous bankruptcy process or have financial issues that prevent him from investing.
Review the conditions for obtaining Investment license It shows the government's endeavor to facilitate the start of your investment and obtain an investment license with the simplest conditions and requirements.
What are the advantages of obtaining an investment license in the kingdom of Saudi Arabia
Be sure to get the Investment license It provides some features for the investor such as:
- 100% fully owned by foreign investors in some sectors.
- The possibility of opening bank accounts and starting to conclude commercial contracts.
- Provide legal protection of your investment in accordance with Saudi regulations.
- The possibility of starting the recruitment of foreign labor in accordance with the regulations of the Ministry of Labor.
What are the steps to obtain an investment license
- Registration via the Ministry of investment portal
- Login to the “Invest in Saudi Arabia " website via the link: investsaudi.sa
- Create a new account or log in if you have a previous account.2. Submit the application and required documents
The investment license application form must be completed and the following documents must be attached:
- A copy of the commercial register (if the investor is a company)
- Proof of financial solvency (bank statement or approved budget)
- Feasibility study of the project (for large investments or some private sectors)
- Copy of national ID or passport (for individual investor)
- Power of attorney (if the application is submitted via a proxy)
- Payment of the prescribed fees
- The fees vary depending on the type of investment activity, and can be paid electronically via SADAD system.
- Review of the application by the ministry
- The Ministry of investment reviews the application and documents and verifies that the conditions are met.
Important note Additional documents or amendments may be requested if necessary.
- Obtaining the necessary approvals
- Some activities require additional permits from other entities, such as the Ministry of Health, the Ministry of education, or the Ministry of industry.
In this case, coordination is carried out between the Ministry of investment and the relevant authorities.
- Issuing an investment license electronically
- Once the application is approved, the investment license is issued electronically through the ministry's portal.
Can be downloaded and printed Investment license Directly for use in other procedures such as opening a bank account or registering with the Ministry of Commerce.
How long is the investment license issued
- Usually it is issued Investment license Within one working day if all documents are fulfilled. But the It may take longer if additional approvals are required.
These steps make the process of issuing Investment license In Saudi Arabia, it is more accessible and transparent, which helps to attract investors and achieve sustainable economic growth.
Investment license costs in Saudi Arabia
The establishment of companies in Saudi Arabia needs to go through some steps, including obtaining an investment license, and the main costs of this license are fixed in the first year, which is 12,000 Saudi riyals, while the costs vary in the second year of the license
Why am I investing in Saudi Arabia
If you want to be a winner with great investment opportunities that are almost guaranteed results, there is no doubt that Saudi Arabia is your ideal destination because:
- Unique geographical location: Although the kingdom is part of the continent of Asia, it is on the contact lines with the continent of Europe and Africa as well, which facilitates the process of transporting raw materials and exporting them to multiple international destinations .
- Infrastructure : As the kingdom has a very strong infrastructure of airports, ports, land routes, land and sea ports with many countries.
- Economic growth: The kingdom is one of the economic tigers globally, as the kingdom is one of the 20 strongest economies in the world currently.
- Legislation and laws : As part of the kingdom's keenness to increase the percentage of investment in Saudi Arabia, it has updated its investment laws and rules.
- Ease of establishing a business: Currently, you can establish an investment entity in the kingdom of Saudi Arabia in the shortest possible time ( up to a maximum of 4 weeks ) and also in simple steps compared to the previous situation in the kingdom before the launch of Vision 2030.
From the previous elements it can be concluded that Investment In Saudi Arabia, it is characterized as a quick-action investment that takes care of time and effort and provides great transparency for any new investor in the Saudi market.
What are the incentives for investing in Saudi Arabia
After the investor receives Investment license In Saudi Arabia it is due to some incentives that are offered to investors such as.
1- Equal treatment: A foreign investor enjoys the same treatment as a national investor, which ensures equal opportunities in the investment environment.
2- Procedural facilities: In accordance with the new investment law, dedicated service centers have been established to speed up investment operations in the kingdom.
3- Financial incentives: As the state contributes part of the cost of technical training for workers in some investment fields, in some cases half of the value of the land allocated for industrial projects is refunded if industrial investment begins two years after receiving the land, and the state allocates free land for some strategic industries.
4- Tax and customs exemptions: Exemption from stamp tax, notarial fees and monthly contracts of incorporation of companies and establishments and credit facility contracts for a period of five years from the date of their registration in the commercial register.a simple customs tax of 2% is also obtained on all imported machinery and equipment for companies to start their work.
5- Logistics facilities: It is allowed to establish special customs ports for exports and imports of the investment project after the approval of the minister of Finance, which contributes to facilitating business operations for investors.
6- Special exemptions for economic zones: The law allowed the establishment of Special Economic Zones within the Kingdom, and these zones enjoy more tax and customs exemptions, depending on the activities and sectors targeted by the government in its investment plans, an example of these zones.
- King Abdullah City Special Economic Zone,
- Special economic zone of Ras Al Khair,
- The Special Economic Zone of Jazan.
Conclusion
The acquisition of Investment license In the kingdom of Saudi Arabia, it has become a bright future step in the shadow of Modern investment law, But despite its simplicity, it has many conditions and requirements that must be adhered to.We always encourage you to invest in the kingdom to enjoy the huge opportunities offered by its huge economy.
