6 Steps to Get an Entrepreneur License in Saudi Arabia

Saudi Arabia is redefining entrepreneurship in the Middle East. In 2025, the number of foreign startups licensed under Saudi Arabia’s entrepreneurial programs exceeded 550, reflecting a 118% year-on-year growth. Venture capital funding also hit $1.38 billion, positioning the Kingdom as MENA’s largest and fastest-growing startup ecosystem. Saudi Arabia's policies and Vision 2030 initiatives are driving this transformation.

At the centre of this surge lies the entrepreneurial license, an initiative by the Ministry of Investment (MISA) that allows foreign founders to establish 100% owned startups in Saudi Arabia. A key benefit of this entrepreneurial license is its flexibility and minimal requirements, making it easier for entrepreneurs to enter the market. It’s designed to simplify market entry, reduce upfront costs, and connect innovators to the country’s rapidly growing ecosystem of investors, incubators, and accelerators all aligned with Vision 2030’s mission to drive innovation and economic diversification.

What Is the Entrepreneur License?

The Entrepreneur License is a specialised investment permit issued by MISA to empower innovation-driven startups. Unlike traditional business licenses, it specifically targets early-stage founders, enabling them to operate legally, build teams, and scale with full ownership rights.

This license isn’t just a legal requirement; it’s a strategic tool for international entrepreneurs. One key benefit of the Entrepreneur License is the ease of setup, with minimal requirements and potential waivers that make it especially attractive for global founders. It offers global founders the chance to build in a market where government support, investor access, and digital infrastructure converge to create one of the most future-ready business environments in the world.

Investment Opportunities Linked to the Entrepreneur License

The entrepreneur license in Saudi Arabia unlocks a wealth of investment opportunities for foreign companies and entrepreneurs looking to establish a strong presence in the Kingdom. With this license, foreign companies can set up a limited liability company or other approved legal entities, excluding sole proprietorships, and enjoy the significant advantage of 100% foreign ownership in select sectors. This initiative, driven by the Saudi Arabian government, is part of a broader strategy to attract foreign investment and foster a dynamic, innovation-driven business environment.

One of the standout benefits of the entrepreneur license is its connection to premium residency for foreign founders. Through the Investor Residency Programme, eligible entrepreneurs can secure a renewable residence visa, granting them long-term stability and access to a suite of government support services. These services include mentorship, funding opportunities, and networking platforms designed to accelerate business growth and integration into the Saudi market. Read our blog to learn more 5 Things You Need to Know Before Applying for an Entrepreneur License in Saudi Arabia

6 Key Steps to Obtain the Entrepreneur License

Getting your Entrepreneur License is faster and more streamlined than most markets, with approvals possible in under three weeks. Here’s how the process works:

Step 1: Register with an incubator
Begin by obtaining a support letter from a recognised incubator, accelerator, or venture capital firm. This support letter validates your business idea as innovative and aligned with Saudi priorities.

Step 2: Prepare and Legalise Documentation
Submit essential documents: your business plan, incorporation certificate, founders’ passports, and financials. You must specify the legal entity type for your company and disclose any existing licenses held by the founders or shareholders. All materials must be translated into Arabic and legally attested, especially if issued abroad.

Step 3: Apply Digitally through MISA
File your application via MISA’s e-services portal. Once reviewed, approvals are typically granted within 3–7 business days, making Saudi Arabia one of the fastest licensing jurisdictions in the region. The processing time may vary depending on the completeness of your documentation and regulatory review.

Step 4: Obtain a Commercial Registration (CR)
After license approval, register your company with the Ministry of Commerce to receive your Commercial Registration (CR), your official company ID that enables hiring, invoicing, and operations.

After obtaining your CR, you must open a bank account for your business. Saudi banks require your commercial registration, license, and attested shareholder documents to comply with local banking regulations.

Step 5: Register with Key Government Platforms
Complete your compliance setup with relevant authorities to ensure compliance with all regulatory requirements:

• Qiwa – for workforce and labour management
• GOSI – for employee social insurance
• ZATCA – for VAT and tax registration

As part of your business setup, you will also need to obtain work visas for your employees through the appropriate government support centres.

Step 6: Renew and Scale
The license is valid for one year and renewable for up to five years. Fees start at SAR 2,000 annually for the first three years and increase as the business grows. Founders can later upgrade to a standard investor license or apply for Premium Residency (Entrepreneur Track) for long-term stability.

Why the Entrepreneur License Matters

Saudi Arabia’s Entrepreneur License is one of the most forward-looking entry routes for global startups. It eliminates outdated sponsorship barriers, speeds up market access, and builds direct bridges between founders and the Saudi innovation ecosystem.

Here’s why it’s changing how international entrepreneurs expand into the Kingdom:

• 100% Foreign Ownership – Operate independently with full control of your business and intellectual property.
• Reduced Early-Stage Costs – Save up to SAR 60,000 in waived fees across your first three years.
• Fast, Digital Approval Process – Obtain your license in less than a week and start operations within a month.
• Direct Government Support – MISA’s dedicated investor team provides end-to-end assistance and aftercare.
• Ecosystem Access – Tap into Saudi Arabia’s expanding network of investors, incubators, and accelerators.
• Scalable Growth Path – Easily transition to a standard investor license or apply for Premium Residency as your company grows.

The Entrepreneur License allows foreign investors to establish a company in Saudi Arabia with 100% ownership in certain sectors, such as services, industry, and agriculture. Obtaining this license does not require large capital, making it accessible for startups and early-stage businesses; however, sole proprietorships are not eligible under this scheme.

This combination of ownership, flexibility, and government backing makes Saudi Arabia one of the most attractive markets for founders looking to scale globally.

Frequently Asked Questions

1. How long does it take to get an Entrepreneur License?Most applications are approved within 3–7 business days once all documentation and endorsements are submitted.

2. Can I own 100% of my company? Yes. The Entrepreneur License grants full foreign ownership without the need for a local partner or sponsor.

3. Who can apply? Foreign founders and startups that are innovation-based and supported by an incubator, accelerator, or venture capital firm.

4. Is there a capital requirement? No major capital deposit is needed. MISA evaluates your business model and innovation potential, not your initial balance sheet.

5. Can I upgrade or expand later ? Yes. Many startups later transition to a standard investor license or apply for Premium Residency (Entrepreneur Track) for long-term residence and business continuity.

6. What is the difference between an Entrepreneur License and other business licenses? An Entrepreneur License is designed specifically for startups and innovation-driven businesses, supporting entrepreneurship and economic growth in Saudi Arabia. Other types of business licenses include the investment license, which is required for foreign investors to establish and operate a business, and the professional license, which allows foreign professionals to offer consulting or advisory services. Each business license has its own legal requirements and is issued based on the nature of the business activity.

7. Are foreign nationals and foreign companies eligible to apply? What legal requirements must they meet? Yes, both foreign nationals and foreign companies can apply for business licenses in Saudi Arabia, including the Entrepreneur License. Foreign nationals are eligible to establish companies without a local partner, provided they meet the specific legal requirements set by Saudi authorities. Foreign companies must provide additional documentation, such as legalised and translated corporate documents, and comply with regulations for foreign ownership and operation.

8. How do entrepreneurship licenses support startups and innovation in Saudi Arabia? Entrepreneurship licenses play a key role in enabling startups to launch and grow in Saudi Arabia. They provide a legal framework for foreign entrepreneurs and innovation-based businesses to operate, access funding, and benefit from government support programs, helping to drive economic diversification and technological advancement.

Expand Smarter with Saudi Arabia’s Entrepreneur License

For foreign founders, Saudi Arabia’s Entrepreneur License isn’t just a formality; it’s a fast track to building a future-ready business in one of the world’s most ambitious economies. It combines ease of setup, full control, and direct access to an innovation ecosystem that’s shaping the region’s digital and economic future.

At TASC Outsourcing, we simplify the entire process, from securing your MISA endorsement and completing your application to setting up your workforce and maintaining compliance. With nearly two decades of experience in business setup and staffing across the GCC, we ensure your market entry into Saudi Arabia is smooth, strategic, and built for long-term growth.

Partner with TASC and start your Saudi journey today.
Your success story begins with the Entrepreneur License in Saudi Arabia