Saudi Arabia is becoming one of the fastest-growing business destinations in the world. With Vision 2030, the government has made it easier for entrepreneurs, freelancers, and companies to start service businesses legally. If you’re planning to launch a consulting firm, IT company, digital agency, training service, or any other service-related activity, the first and most important step is obtaining a Service License in Saudi Arabia.
This guide will walk you through what a service license is, who needs it, how to apply, required documents, costs, and FAQs to help you understand the full process clearly and confidently.
What Is a Service License in Saudi Arabia?
A service license, also known as a Commercial Registration (CR) for service activities, is an official approval from the Ministry of Commerce (MOC) that allows individuals and companies to legally operate service-based businesses in Saudi Arabia.
Examples of service activities include:
- IT services and software development
- Digital marketing, SEO, advertising
- Consulting & training services
- Accounting and auditing
- Cleaning & maintenance services
- Engineering and architectural services
- Salon, beauty, and wellness services
Any company that provides a service instead of selling products needs this license.
Who Needs a Service License?
You must apply for a service license if you are:
- A foreign investor with 100% ownership through MISA
- An expat with a Saudi partner
Regardless of your business size—small startup, freelancer, or a full company—you need this license to operate legally in Saudi Arabia.
Benefits of Getting a Service License
Getting a service license gives you:
- Legal permission to start operating
- Ability to issue invoices and receive payments
- Eligibility to hire employees
- Access to office spaces and commercial rental agreements
- Opportunity to register for VAT
- Authority to join government and private contracts
- Business bank account opening
- Enhanced business credibility
If you plan to grow your business in Saudi Arabia, this license is absolutely essential.
Step-by-Step Guide: How to Get a Service License in Saudi Arabia
Below is the complete, beginner-friendly process to obtain your service license.
Step 1: Decide the Exact Business Activity
Your first step is to select your business activity from the Ministry of Commerce activity list.
Examples:
- Advertising & Marketing Services
- Maintenance & Cleaning Services
- Event Management Services
Selecting the correct activity is important because it determines your document requirements and licensing steps.
Step 2: Choose Your Legal Structure
You must select the company format before applying. The common types are:
- Limited Liability Company (LLC)
- Joint Venture
- Private Limited
Step 3: Reserve Your Business Name
Visit the Ministry of Commerce website and reserve a unique company name.
Tips:
Must be unique
Should match your business activity
Avoid restricted words
Name approval usually takes a few days.
Step 4: Prepare Required Documents
The requirements vary based on nationality.
For Saudi/GCC nationals:
- National ID
- Mobile number linked to Absher
- Business name reservation
- Activity details
For expats with Saudi partner:
- Partner ID
- Legal agreements
- Sponsorship details
For foreign investors:
- MISA (Ministry of Investment) License
- Passport copies
- Articles of Association
- Power of Attorney (if applicable)
Step 5: Apply for the Commercial Registration (CR)
Now go to the Ministry of Commerce website and apply for your CR.
You must enter:
- Owner details
- Business activity
- Company structure
- Capital
- Office address
Once approved, you will receive:
- CR (Commercial Registration)
- Company Number
- Activity Code
This officially means your company is recognized as a legal service provider.
Step 7: Government Portal Registration
The next step is to register with government and business portals using authorized GM’s
Iqama. Registration is essential for accessing services and official processes in Saudi Arabia,
ensuring smooth operations and compliance with regulations
Step 8: Delegating General Manager
Appointing a General Manager in Saudi Arabia requires transferring their iqama sponsorship to the company. If the GM’s current profession is low-level, it must be
upgraded to match their new role.
Step 9: Open a Business Bank Account
Using your CR and national ID, visit your preferred bank:
- Al Rajhi
- Riyad Bank
- SNB
- Bank AlJazira
- Alinma Bank
This account is essential for receiving payments and issuing invoices.
How Long Does It Take to Get a Service License?
The entire process normally takes:
- 3–10 working days for Saudis and GCC nationals
- 30–60 working days for expats and foreign investors
If all documents are ready, the process is fast and smooth.
Common Mistakes to Avoid
Choosing the wrong activity
Not preparing complete documents
Using a business name that violates rules
Forgetting Chamber of Commerce activation
Not checking municipality requirements
Avoiding VAT registration when necessary
Being careful with these steps saves time and avoids rejection.
FAQs – Service License in Saudi Arabia
1. Can a foreigner start a service business in Saudi Arabia?
Yes! With a MISA Investment License, foreigners can have 100% ownership of a service company.
4. What is the fastest way to get a service license?
Applying through the Ministry of Commerce portal with correct documents is the fastest path.
5. Do I need an accountant?
For VAT and financial compliance, it’s recommended but not compulsory initially.
6. Can I run my service business from home?
Some activities allow remote work but must still have a registered business address.
Conclusion
Getting a Service License in Saudi Arabia is now easier and faster than ever. By choosing the right activity, registering your business name, submitting the required documents, and completing CR and Chamber of Commerce registration, you can start operating legally and confidently.
Saudi Arabia is full of opportunities—and once your service license is approved, you’re officially ready to launch and grow your business!If you’re ready to start your service business in Saudi Arabia, ArabDreams is here to make everything easier. We guide you through each step — licensing, registration, documentation, and compliance — so you can focus entirely on growing your business. With ArabDreams, your success is always our priority.
