Starting a business in Saudi Arabia is now more accessible than ever. With regulatory reforms, a fully digital registration process, and nationwide coverage, the Kingdom is attracting entrepreneurs and investors eager to tap into one of the region’s most dynamic markets.
If you are exploring how to start a business in Saudi Arabia, this step-by-step guide outlines the key stages—from initial planning to legal registration and launch.
1. Define Your Business Activity
The first step is to identify the nature of your business. The Ministry of Commerce provides an approved list of business activities across sectors, including e-commerce, consulting, retail, technology, and more.
Choosing the right activity is crucial, especially if you plan to operate in sectors prioritized under Vision 2030, such as tourism, entertainment, and digital innovation.
2. Reserve a Trade Name
Once your activity is defined, select a trade name that represents your business identity. Under the new Trade Names Law, businesses are no longer required to include city names or maintain separate names for different regions.
You can reserve a unique name online through the Ministry of Commerce portal.
3. Register Your Commercial License (CR)
The commercial registration (CR) is your official business license. As of 2025, the registration process is:
-
Fully digital
-
Nationwide (no city-based licenses required)
-
Unified (no subsidiary registers needed)
To obtain your CR:
-
Visit the Ministry of Commerce website
-
Create an account
-
Submit business details and required documents
-
Pay the applicable government fees
-
Receive your certificate via email
This step completes your formal Saudi company registration.
4. Apply for Sector-Specific Permits
Depending on your business activity, you may need to obtain additional approvals. Common examples include:
-
E-commerce license for online businesses
-
Municipal permits for retail and food outlets
-
CITC registration for telecom or IT-based services
All permit applications can be submitted online, through relevant authorities such as Balady, CITC, or the Ministry of Municipal and Rural Affairs.
5. Register for Taxes and Open a Business Bank ccount
After securing your CR, register your business with the Zakat, Tax, and Customs Authority (ZATCA) for VAT and other applicable taxes.
You can then open a corporate bank account using your CR and tax registration number. Leading Saudi banks support business account setup through digital channels.
6. Set Up Operations and Hire Employees
Register your business address with the National Address System and finalize your operational setup—whether physical, virtual, or hybrid.
To onboard employees, use platforms such as:
-
Qiwa (for employment contracts and Saudization compliance)
-
Mudad (for payroll and wage protection)
7. Launch and Promote Your Business
Once all legal and operational requirements are complete, your business is ready to launch. Build your brand presence through a professional website, business listing platforms, and digital marketing channels such as LinkedIn, Instagram, and Google Ads.
With a clear regulatory framework, nationwide registration, and digital government services, starting a business in Saudi Arabia is more accessible than ever. Entrepreneurs now benefit from a pro-business environment designed to attract innovation and accelerate private sector growth.
Whether you’re entering the market for the first time or expanding your operations, understanding the setup process is essential to building a sustainable business in the Kingdom.
Need expert support? Northman & Sterling provides end-to-end assistance with business setup, licensing, and market entry strategy in Saudi Arabia.
Explore services from Northman & Sterling to get started.
