Minimum Capital Requirement for different types of SAGIA Licenses

All of us know that if a foreigner wants to start a business in Saudi Arabia, he has to apply for SAGIA license. We have explained in detail the step by step procedure to apply for SAGIA license.

One of the steps to apply for SAGIA license is to select the type of license you need.  Each and every company must choose an appropriate license for business activity, for example;

  • Service – Maintenance, Restaurants
  • Agriculture – livestock, farms
  • Industrial – Manufacturing
  • Trading – Exports and Imports

Minimum Capital Requirement for SAGIA Licenses

Type of InvestmentIndividual EstablishmentLLCBranchTechnical & Scientific Office
ServiceNo requirementNo requirementNo requirementNo requirement
IndustrialSR 1 millionSR 1 millionSR 1 millionSR 1 million
TradingN/ASR 20 million (Saudi partner is required, maximum foreign ownership can be 75%)N/ANo requirement
Real EstateMinimum Project Value SR 30 millionMinimum Project Value SR 30 millionMinimum Project Value SR 30 millionN/A
AgricultureSR 25 millionSR 25 millionSR 25 millionN/A

Required Conditions for Investors

1-In order to obtain approval for the license, the investors must adhere to the regulations of the Kingdom. The foreign investments have only been permitted for the licensed investment activity.

2-All of the applicants for the license must be either GCC, Saudi or corporate individuals who are coming to the Kingdom solely for investment purposes.

3-All of the investors will have to pay a sum of SAR 2000 in order to obtain the license.

4-For the foreign investors, all their documents must be translated into the Arabic language and certified by the Saudi Consulate in the home country of the investor.

Documents required for all the investors

1-Passport copies for each partner which must also show the blank pages. The passport must have a minimum validity of 6 months.

2-Four photographs of each of the partner of the company.

3-Commercial registration copies of the firm in the home country of the investors. It must also be certified by the local concerned authorities in the investor’s home country

4-Financial statement of the company owned by the investors or in which they are partners. Financial statements must be for a two-year period prior to the filing of the application for the license.

5-If the investor/s has previously resided in the Kingdom within 3 years of applying for the license, then a No Objection Letter must also be obtained from the previous sponsor.

Documents required for individual establishments: In this case, the Investors will be required to submit their resume along with the certificate of the highest education and the firm’s classification certificate.

Other documents include listing three major clients, their contracts and also showing the bank certificate showing the minimum capital as per SAGIA regulations.

Required documents for Limited Liability Companies

1-Draft articles of association of the new company.

2-If the partnership is made of individuals, then a copy of the investor’s résumé and their highest education certificate will be required.

3-The shareholder’s resolution which states their intent to invest and other details such as capital, names, percentages etc.

4-Bank certificate which shows the stipulated amount by SAGIA as well as a six-month bank statement.

5-If the partnership is made up of companies, then a copy of the articles of association of the firms involved in the business and the shareholder’s resolution which states their intent to invest and other details.

6-If there is a Saudi partner he will have to submit his family card or official document proving that he is not a government employee.

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Steve has been living in Saudi Arabia since 2013 and writing about Saudi rules, regulations, guides, and procedures since then.