Industrial License in Saudi Arabia

An industrial license in Saudi Arabia allows businesses to engage in industrial activities like manufacturing and production.

For getting an industrial license, there are certain requirements as per your business activity, and company’s specifications.

How do you get an Industrial License in Saudi Arabia?

Note: Before you start, check if the activity you have chosen requires any license.

Here are the steps for getting your Saudi Arabian Industrial license:

1. Gather all the important documents such as the: 

• Business plan
• Project details
• Company details
• Financial statements
• The information of all shareholders
• Approvals from the authorities and most importantly

2. You have the option to apply online and in person. Try online to save your time and money. Use the Ministry of Industry and Mineral Resources portal to apply online.
3. Enter all the details. Upload the documents and pay the fees.
4. The Ministry of Industry and Mineral Resources will review your application once you submit it. You can address any changes before the approval. This is because, after approval, you will have to go through some complex process for any changes.
5. Wait for the approval. And meanwhile, get other relevant licenses, such as licenses from a land authority or municipality, if needed.
6. After receiving the approval notification, you will get the license from the Ministry of Industry and Mineral Resources. And after this, you will be able to start your business.

It is better to approach business setup consultants for assistance in the complex application process. Always check the processing time and plan accordingly. Make sure you are ready with all the required documents. Stay updated with regulations and any legal changes.

Benefits of having an Industrial License in Saudi Arabia -

Industries like steel, food, polymers and chemical production are the key areas this license covers. Here are some potential benefits of getting your Saudi industrial license:

• Having an industrial license ensures that the company complies with the rules and regulations. This also helps in avoiding the legal issues and to gain the customers' trust.
• A Saudi Arabian industrial license helps you manufacture, scale, and sell your products in the Saudi market and beyond.
• This license allows you to enjoy all the government privileges like:
• Tax exemptions,
• Financial support,
• And workforce hiring. 
• Getting an industrial license will help your business gain the trust of your customers. It shows your commitment to the quality.
• Companies with a Saudi Arabian business license always get more priority when it comes to government projects.
• Reduces dependency on imports and adds value to the local products.
• The growth of the industry will increase the job opportunities in Saudi Arabia.
• With an increase in the number of industrial licenses, Saudi Arabia aims to become a regional hub in the manufacturing sector.

And the Saudi government is taking more measures to improve the economy and become a global industrial hub.

Key Points about the Industrial License in Saudi Arabia -

Read this table for a better understanding of the license categories and the numbers assigned to each:

Regulations for issuing an Industrial License for Establishing a Unit -

These are the two regulations under which the licenses are issued for establishing an industrial unit:

• The National Industrial Encouragement Law

If you are a Saudi localite, then this regulation is for you. Under this, you will be able to establish an industrial company within Saudi, with the Saudi Capital.

• The Foreign Capital Investment Law

If you are a foreigner, planning a business setup in Saudi Arabia, or want to have a project there then this regulation is for you.

Rules for Registering Your Industrial License -

Here are the rules to register an industrial license in Saudi Arabia:

• Projects with a fixed capital of 1 Million riyals do not require approval from the Ministry of Industry and Mineral Resources. But the business should be recorded in the business register.
• With these projects, investors can obtain forms from the Ministry's Industrial Project Evaluation and Licensing Department.
• The completed form must be submitted to the Department of Commerce with all the required documents.
• After approval, the form will be moved to the business registration office.
• The registration office will contact the investor to finish the registration process in person or online.

The Saudi Ministry of Industry and Mineral Resources (MIMR) is the regulatory authority to apply for an industrial license in Saudi Arabia.

Documents for getting your Saudi Industrial License -

Here are the documents you need to arrange for getting your Saudi Arabian industrial license:

• If any of the partners have previously obtained industrial licenses, those details should also be mentioned in the shareholder’s information.
• For foreign companies, you need to provide the previous year's financial statements. That has to be certified by the Saudi Embassy.
• A Saudi Embassy-certified copy of the commercial registration of all shareholders.
• People who hold premium residences are exempted from a few of the documents.
• During electronic registration, you should enter your Saudi national identity number.
• Identity proofs of all the shareholders.

Note: After submitting all the above details and documents, the applicant should approach the Ministry of Industry and Mineral Resources to get the Industrial license in Saudi Arabia.

Look at the Important Points

The increase in Saudi business licenses is going to boost the industrial exports to $149bn by 2030. It will increase the factory count from 10,640 to 36,000 by 2035.

If you want to get your Industrial license, contact a trustworthy business setup consultancy. Commitbiz has served 150+ nationalities. We are offering a free consultation call to answer your doubts. If you want to avail it, connect with us now.