Tawaref series: What you need to know about Saudi specialised licences

We have already discussed the types of business Licences offered to foreign investors who wish to expand operations in Saudi Arabia. However, businesses may be required to obtain special Licences beyond standard permits, depending on business activities and industry sector. 

This article will discuss the various types of special Licences in Saudi Arabia. In addition to providing descriptions of each, we will also provide examples of scenarios where such Licences must be obtained and a brief overview of the application process. 

What are specialised licences?

After obtaining one of the 13 standard Licences (commercial, service, transport, etc), a business is legally registered in Saudi. However, they may be required to apply for additional Licences due to the nature of their business activities before they start operating. 

These additional permits are referred to as special Licences, as they are only needed under specific industry conditions. You can browse the many types of special Licences on the Saudi Business Centre website, where each Licence is classified by sector. 

Examples of scenarios where a special Licence must be acquired include opening a hospital, operating a food warehouse, inaugurating a sports centre, etc. Tawaref encourages businesses to consult a seasoned lawyer focussing on their verticals (healthcare, training, industry, mining, etc.) for guidance on licensing matters. 

Application process for specialised licences

The application process for special Licences is quite simple, falling under the company formation process. (If you are not familiar with this process, please read our previous article on company formation first to get an idea). The following is what it typically looks like:

1. Obtain initial approval from regulator

Each special permit is issued by the regulator of the industry. For example, all health permits are issued by the Ministry of Health, Saudi Food & Drug Authority (SFDA), etc. Each industry has one or more regulators issuing these Licences. The first step is to get initial approval from your regulator, allowing you to search, rent, and furnish an office space of your choice.

2. Get a building permit

The next step is to start furnishing and bringing your equipment to your selected building (eg: office, hospital, school). This step ends with receiving a building permit from the Ministry of Municipalities and Housing (MoMH), which includes a site visit to see if your building matches standards.

3. Present permit to regulator

Once your building has been approved by MoMH, you must go back to your regulating authority and present all permits and certifications that make you eligible for the final specialised permit. 

Case Study: Advertising Agency

To better illustrate the above-mentioned process, here is a sample case study. Suppose you are looking to open an advertising agency in Saudi. You need to follow a multi-step process before you can operate. The following is an overview of the process; for a more detailed explanation, visit the Saudi Business Centre.

After obtaining a MISA licence and CR, you must:

1. Get the initial permit with the General Authority of Media Regulation.
2. Establish your designated office and get a Licence on the building itself from the MoMH to allow the construction and planning of your centre. This step may include a visit to the site for approval.
3. Connect water and electricity to your office.
4. Receive an occupancy certificate that verifies that your building is compliant with safety standards. 
5. Go back to your regulator (in this case it is GAMR) and present your approvals and certifications to receive a special licence. 

You can now begin hiring employees and start business operations. 

Saudi expansion series

This article is part of the Saudi Expansion series, where we aim to educate international entrepreneurs and business owners on Saudi Arabia’s foreign investment regime for a smooth landing. This article is written by Tawaref, a tech investment community that finances top regional startups and offers entrepreneurial services.