How to Set Up a Trading Company with 100% Foreign Ownership in Saudi Arabia

Saudi Arabia now allows 100% foreign ownership of trading companies through a MISA License (Ministry of Investment of Saudi Arabia). This major policy shift enables global investors to establish trading businesses — including wholesale, retail, and e-commerce — without the need for a local Saudi partner or sponsor.

With Saudi Arabia’s Vision 2030 driving economic reform, this presents a significant opportunity for foreign businesses to enter the Saudi market with full control over operations.

Benefits of 100% Foreign-Owned Trading Company in Saudi Arabia

  • Full ownership with no requirement for a local sponsor
  • Direct control of trading activities (wholesale, retail, e-commerce)
  • Unrestricted market access under your global brand
  • Compliance with Vision 2030’s foreign investment reforms
  • Enhanced operational freedom for international companies

Key Requirement: The Principal Company Ownership Model

To qualify for 100% foreign ownership of a trading license in Saudi Arabia, foreign investors must adopt the Principal Company Model. Requirements include:

  • The foreign parent company must directly own the Saudi entity.
  • The parent company must operate under the same name and ownership in at least three countries outside Saudi Arabia.
  • These affiliated companies must be legally registered and active.

This regulation ensures only experienced and globally recognized companies are eligible for full foreign ownership of trading licenses in Saudi Arabia.

Financial Requirements for a MISA Trading License

Saudi Arabia has established specific financial thresholds for fully foreign-owned trading companies:

  • Minimum capital requirement: 30 million SAR (approximately USD 8 million)
  • Investment commitment: 200–300 million SAR over five years
  • Mandatory Saudization requirements (hiring and training Saudi nationals)

These financial commitments align with the Kingdom’s focus on attracting serious, globally credible investors.

Required Documents for MISA Investment License Application

To apply for a MISA License for a 100% foreign-owned trading company, the following documents are required:

  • Commercial registrations in at least three countries, attested by the Saudi Embassy or Consulate
  • Corporate charter documents, including Memorandum and Articles of Association
  • Board resolution approving the Saudi expansion and appointing authorized representatives
  • Audited financial statements for the last two to three years, certified
  • Shareholder and director identification documents (passports or national IDs)
  • Business plan or company profile outlining global activities and the Saudi strategy
  • Power of attorney, if a local consultant is authorized to manage the application. This document must also be notarized and authenticated as per Saudi requirements.

Note: All foreign documents must be professionally translated into Arabic (if not already in Arabic) and attested by the relevant authorities – usually notarized in the home country, then stamped by the home country’s Ministry of Foreign Affairs and the Saudi Embassy/Consulate. Ensuring every document is properly legalized will smooth the approval process.

Step-by-Step: How to Apply for a MISA Trading License in Saudi Arabia

  1. Create an account on the Invest Saudi portal and begin the application under the commercial/trading category.
  2. Complete the application forms with company details, intended business activities, and financial information.
  3. Upload all required, attested, and translated documents.
  4. Await MISA’s review, typically completed within five to ten business days with proper documentation.
  5. Upon approval, receive the MISA Investment License confirming 100% foreign ownership eligibility.
  6. Finalize the company incorporation with the Ministry of Commerce and obtain the Commercial Registration (CR).

 

Why Choose MajuBiz for Your Saudi Arabia Company Setup

With over 14 years of expertise across the GCC, MajuBiz specializes in securing MISA licenses and establishing 100% foreign-owned companies in Saudi Arabia. Our services include:

  • End-to-end support, from MISA license and CR to VAT registration and Iqama
  • Comprehensive knowledge of Saudi compliance and regulations
  • Streamlined processes for faster market entry
  • Tailored guidance aligned with Vision 2030

MajuBiz ensures your Saudi business expansion is smooth, compliant, and strategically positioned for growth.

FAQs on 100% Foreign Ownership of Trading Companies in Saudi Arabia

Is 100% foreign ownership allowed for all sectors?
No. It applies to approved sectors such as trading (wholesale, retail, e-commerce) and others aligned with Vision 2030.
How long does the MISA license process take?
Typically four to six weeks with complete documentation.
Can small businesses apply?
No. Only companies with a proven international presence in three or more countries and strong financials are eligible.
Can I apply through a consultant?
Yes, and working with experienced consultants like MajuBiz is recommended for accuracy and efficiency.

Final Thought

Saudi Arabia’s doors are open for 100% foreign ownership like never before. With a MISA License, your trading company can operate independently, access one of the Middle East’s most dynamic markets, and contribute to Vision 2030’s ambitious goals.
If you are ready to establish your Saudi trading company, contact MajuBiz today for expert consultation.