How to open a successful enterprise in Saudi Arabia

How to open a successful enterprise in Saudi Arabia

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Have you ever dreamed of quitting your office job and starting your own business? If the answer is yes, then you are not alone, as many people in the Kingdom of Saudi Arabia have this dream, but only a few of them succeed in achieving it. What is the secret behind the success of some business projects in Saudi Arabia while others fail? In this article, we will reveal to you the basic steps and important tips that will help you open a successful enterprise in the Kingdom. We will lend a helping hand and provide you with everything you need to know to achieve your dream and become a successful entrepreneur in Saudi Arabia. So follow along with us and read what was written carefully.

How to open an enterprise in Saudi Arabia 

In order to be able to create a successful enterprise in the Kingdom of Saudi Arabia, the conditions for opening a commercial enterprise set by the Kingdom must be met, and these conditions are as follows:

Eligible age 

First, the applicant to open an enterprise must be over eighteen years of age, and this condition is necessary to ensure that the founder has the experience and maturity necessary to manage the enterprise responsibly.

Payment of fees

There are certain fees that must be paid to open an enterprise. The applicant must pay 1,000 Saudi riyals as a license fee, in addition to 900 riyals as a subscription fee to the Chamber of Commerce. Do not forget that these fees are necessary to cover administrative and organizational costs.

Commitment to pay an annual subscription

The applicant must commit to paying an annual subscription to the Chamber of Commerce. In order to be able to open an enterprise in the Kingdom of Saudi Arabia, this subscription gives the enterprise many advantages and services that facilitate its operations.

Availability of an official headquarters

The enterprise must have an official headquarters that complies with the municipality’s requirements, as this condition ensures that the enterprise operates from a suitable and licensed location.

Submit a commercial registration. 

The applicant must submit a valid commercial registration as part of obtaining a license, which proves that the enterprise is registered and operating legally.

Provide proof of ownership of the headquarters.

Proof of ownership of headquarters must be provided, whether through a title deed or a lease contract. This ensures that the enterprise has the legal right to operate from this location.

Good conduct and behavior

Finally, the applicant must have a good business and conduct record and not have been convicted of any criminal offense. These conditions ensure that the organization will operate in a responsible and ethical manner.


With the sum of these conditions, the Saudi government seeks to create an organized and safe commercial environment for all enterprises operating in the Kingdom, and if all of these requirements are successfully met, the applicant will be able to open an enterprise in a legal and proper manner.

Steps to establish a company in Saudi Arabia, according to the Ministry of Commerce website

Establishing a company in the Kingdom of Saudi Arabia requires following the following steps:

  • Registration on the Saudi Business Center platform: The first step is to enter the Saudi Business Center platform and register as a new user.
  • Choosing the company establishment service: After entering the platform, you must choose the “company establishment” service and fill out the data required for the service.
  • Completing the establishment procedures: After submitting the establishment application, an application number will be issued, and verification letters will be sent to the partners to approve the contract electronically.
  • After approval, an invoice is issued for the required fees that must be paid.
  • Obtaining incorporation documents: After payment, the company’s articles of incorporation and commercial registry are issued, and the contract is published electronically.
  • Completion of other registration procedures: The company must register with the Zakat and Tax Authority, the General Organization for Social Insurance, and also the Saudi Post.


Additional documents may be required, such as copies of the commercial registry and the owner’s personal identity, in addition to the capital deposit, which may need to be authenticated by the Saudi Embassy and the Ministry of Foreign Affairs.

Conditions for opening a sole proprietorship for residents of Saudi Arabia 

It is possible to open a sole proprietorship in Saudi Arabia without the need to open a commercial register. However, care must be taken to comply with the conditions set by the Ministry of Human Resources and Development to avoid any penalties. These conditions include the following:

  • Verify the initial capital of the institution, which must be more than 5,000 Saudi riyals.
  • Obtaining a license to practice the activity to be carried out from the Ministry of Human Resources and Development.
  • Register to obtain a tax number from the Ministry of Industry and Trade.
  • Submit documents proving experience in the field in which you wish to work.
  • Submit a copy of the family booklet receipt and official proof of ownership or lease of the organization’s site.

Conditions for opening a commercial registration without a store 

When Saudi citizens want to open their own commercial registration without the need for a shop, here are some of the main conditions that must be met:

Having a suitable place for the activity

The applicant must have a place that suits the type of business activity he wishes to practice, but if the place is rented, the lease contract for this place must be available.

Write your personal address.

The applicant must write the address where he resides if he wants to open an enterprise without a store, for the purpose of communication and documenting personal information.

Enter all the required data.

The applicant must enter all the required information, such as his full name, date of birth, and a copy of his signature, as this information is used to identify the applicant and register it in commercial registration.

Determine the type of activity.

The applicant must specify the type of business activity he wishes to practice, as this type is determined based on the nature of the business and the products or services that the applicant provides.

Determine the project cost.

The applicant must determine the specific financial value of the cost of the commercial project he wishes to establish. It is worth noting that this information is used for the purpose of evaluation and registration in commercial registration.

Write the project address.

The applicant must indicate the place where he intends to open an enterprise in order to be registered on the commercial registration paper.

Possibility to modify data

If the applicant wishes to modify any of his data, he must do so within thirty days from the date of commercial registration.

Not working in government sectors

The applicant must not be an employee in the government sector, as commercial registration is intended for private commercial activities and personal projects.

Certificate of participation in the Chamber of Commerce and Industry

A certificate of participation in the relevant Chamber of Commerce and Industry must be available, as this certificate reflects the applicant’s affiliation with the commercial community and his confirmation of the legality and legitimacy of his commercial activity.

What are the conditions for opening a sole proprietorship with four workers?

Opening a sole proprietorship in Saudi Arabia with four workers requires the fulfillment of a set of basic conditions, which are as follows:

Obtaining a valid residence permit 

The resident must have a valid residence permit and have resided in the Kingdom of Saudi Arabia for more than one year. It is worth noting that this condition is necessary to prove the resident’s stability in the country.

Not being exposed to any violations

Moreover, the resident must not have previously been subjected to any legal penalties or violations, as he must submit a clean reputation certificate to ensure that there are no legal issues against him.

Exceeding the minimum age requirement 

The resident must also have exceeded the minimum age required to open a sole proprietorship. This aims to ensure the availability of sufficient experience and maturity to manage the project.

Determine the appropriate capital 

Finally, the resident must determine the appropriate capital to carry out the intended commercial activity and ensure that this activity is compatible with the laws and regulations in force in the Kingdom.

Fees for opening a sole proprietorship: 4 workers 

Opening a sole proprietorship in Saudi Arabia requires some procedures and financial costs, such as the following:

Commercial registration and issuance fees

  • For the main institution: 200 Saudi riyals per year.
  • For branches: 100 Saudi riyals per year.
  • In addition, there are additional fees for the Chamber of Commerce, depending on the type of activity and the grade of the commercial registry.

Approvals and licenses

  • The necessary approvals must be obtained from the competent authorities, such as the municipality, civil defense, etc., and these vary according to the nature of the activity.
  • Also obtain the necessary licenses, such as a license to practice the activity.

Staff requirements

  • For a sole proprietorship with four workers, working conditions and social insurance for employees must be provided.

Operational costs

  • Office or shop rent.
  • Utility costs, such as electricity, water, and communications.
  • Insurance costs, and other operational expenses.

Can a foreigner open a company in Saudi Arabia?

Yes, the two main ways to establish a foreign company in Saudi Arabia are: either establishing a partnership with a Saudi entity or establishing a wholly owned foreign company. Regardless of the structure, there are conditions for opening an institution for foreigners that must be met to obtain a commercial license, which are as follows:

Verify the company’s activity. 

There is a specific list of commercial activities in which foreign investment is prohibited, so you must ensure that the company’s activity is not among these exceptions, and the products and services must conform to the specified technical specifications.

The applicant’s criminal status

The license applicant must not have previously been convicted in criminal cases, and guarantees must be provided that the applicant adheres to the conditions and attached declarations.

Proof of achieving investment objectives

Finally, the company’s papers must prove that it has achieved its investment objectives in order to obtain a license.

The importance of the Qoyod website for startups 

The website is an essential tool for startup companies, as it provides many advantages and key points that enhance the efficiency and success of these companies, which are as follows:

Improved visibility of more accurate information

The Qoyod program is a powerful source of accurate financial and accounting information, as the site provides detailed reports and analyses that enable startup companies to better understand their financial condition through reliable accounting data and updated financial reports. Companies can make smarter decisions and direct their strategies effectively.

Save time through automation.

The Qoyod website features advanced automation of accounting processes instead of relying on costly and error-prone manual work. Companies can use the site to carry out many analytical and accounting processes automatically. Thus, this contributes to saving time and effort and allows accounting teams to focus on more strategic and creative tasks.


The Qoyod accounting website is a flexible and scalable platform. This makes it suitable for the changing needs of startups, as the site can adapt as the company grows and expands, whether that is by adding new users or expanding the functionality and features available. This ensures that startups will not face restrictions in using the website but will benefit from it continuously as they grow.


Opening a successful enterprise in the Kingdom of Saudi Arabia requires exceptional boldness and vision, but the opportunities that await creators and innovators are limitless. Thanks to its strong economy and continuous technological development, Saudi Arabia challenges the world with its innovative projects and builds its present and future strongly. Remember that the foundation on which your successful organization must be built is understanding the local market and analyzing the unique needs and requirements of Saudi consumers. Your organization must also be able to meet the ongoing needs of the market and provide unique and innovative solutions. Success is not just about starting; it requires a lot of work and dedication. So you must be prepared for challenges and risks, and you must continue to learn and develop your skills and knowledge.

Opening a successful company in Saudi Arabia requires passion, optimism, persistence, and the use of an effective accounting program, such as Qoyod. It is worth noting that the program also offers all its clients: electronic invoice systems as well as point-of-sale systems, stores, customers, etc., which makes it the best accounting program in the Kingdom of Saudi Arabia.

After knowing how to open a successful enterprise in Saudi Arabia, try Qoyod now for free for 14 days, and make your successful enterprise attract attention and inspire others with your passion and success in the entrepreneurial journey.

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