Table of Contents
- Introduction
- What is a MISA License?
- Types of MISA Licenses in Saudi Arabia
- Capital & Ownership Requirements
- Documents Required for MISA Approval
- Step-by-Step Process to Obtain a MISA License
- Post-MISA Approvals & Registrations
- Saudization & Local Substance Requirements
- FAQs
- Conclusion – Start Your MISA Application with Experts
Introduction
Saudi Arabia’s Ministry of Investment (MISA) license is the entry point for most foreign-owned companies in the Kingdom.
As the Saudi economy opens further under Vision 2030, MISA plays a vital role in streamlining foreign investment and ensuring sector alignment, job creation, and compliance.
In 2025, the focus is clear: build a business plan that aligns with the national vision, demonstrate local substance, and plan a realistic staffing structure from day one.
What is a MISA License?
A MISA License in Saudi Arabia (formerly SAGIA License) authorizes foreign investors to legally own and operate a business entity within the Kingdom.
It defines the approved activities, capital requirements, and ownership structure of your Saudi company.
Foreign investors must obtain this license before starting any commercial operation – from consulting to manufacturing or trading.
Types of MISA Licenses in Saudi Arabia
MISA issues different license categories based on business activities:
| License Type | Suitable For | Example Activities |
|---|---|---|
| Service License | Consulting, IT, Healthcare, Engineering | Management consulting, legal services, design firms |
| Trading License | Import & export, distribution, retail | FMCG, automotive distribution |
| Industrial License | Manufacturing & production | Factories, food processing, pharma |
| Regional Headquarters (RHQ) | MNCs serving multiple GCC markets | Regional support & strategic management |
| Specialized Sectors | Education, media, energy, logistics | Tailored under sector-specific rules |
Each license comes with distinct capital norms and local substance expectations, especially for trading entities.
Capital & Ownership Requirements
Mainland companies operate under the standard corporate tax framework:
- 100% Foreign Ownership is permitted for most service activities.
- Trading and retail licenses often require higher capital and a local office presence.
- Minimum capital can range from SAR 500,000 to 2 million, depending on activity and ownership type.
- Investors should prepare a capital plan and shareholding structure aligned with MISA’s activity guidelines.
Documents Required for MISA Approval
Accurate and attested documentation is critical to avoid delays:
- Parent Company Certificate of Incorporation (attested & legalized)
- Board Resolution authorizing KSA entity setup
- Audited Financial Statements of the parent company
- Articles of Association and Commercial Registration copies
- Passport & ID copies of authorized signatories
- Power of Attorney (POA) if signing via representative
Tip: Begin attestation at least a month early to avoid document expiry during MISA review.
Step-by-Step Process to Obtain a MISA License
| Stage | What MISA Looks For | Your Action |
|---|---|---|
| 1. Eligibility Check | Activity fit & ownership structure | Choose the right activity code and capital plan |
| 2. Document Submission | Accuracy & attestation | Legalize documents through Saudi Embassy |
| 3. Review & Approval | Signatory alignment & POA validation | Coordinate authorized signatories in advance |
| 4. License Issuance | Final approval from MISA | Obtain digital license certificate |
| 5. Post-License Setup | Business launch readiness | Proceed to CR, ZATCA, and bank setup stages |
MajuBiz experts offer hands-on support – from registration and VAT filing to corporate tax advisory and entity structuring across UAE mainland and free zones.
Post-MISA Approvals & Registrations
After obtaining the MISA license, register your company with:
- Commercial Registration (CR) – Issued by the Ministry of Commerce
- Chamber of Commerce Membership
- Municipality License for office premises
- ZATCA Registration for VAT and tax filing
- Corporate Bank Account Opening
Each step follows a strict sequence – MajuBiz advises founders to plan signatures and bank appointments early.
Saudization & Local Substance Requirements
To maintain compliance after the CR is issued, companies must:
- Align hiring plans with the Nitaqat Saudization program
- Define office space and headcount in line with activity type
- Maintain local payroll and employment contracts
- Track Saudization ratios through MHRSD portal
FAQs
1. Is 100% foreign ownership allowed in Saudi Arabia?
2. How long does the MISA license process take?
3.Do I need a local partner?
4. Can I add or upgrade activities later?
5. What is the Regional Headquarters (RHQ) license?
Conclusion
The MISA license is more than a permit – it’s your passport to Saudi Arabia’s growing economy.
With over 14 years of GCC setup experience, MajuBiz helps foreign investors plan their MISA license, capital structure, and sector compliance with precision.
