What is Entrepreneur License in Saudi Arabia?
Nov 20, 2024
What is the Entrepreneur MISA License in Saudi Arabia?
The Entrepreneur MISA License is a business license offered by the Ministry of Investment Saudi Arabia (MISA) specifically designed to encourage and support startups, entrepreneurs, and innovation-driven businesses in entering the Saudi market. This license is part of Saudi Arabia’s Vision 2030 initiatives to foster economic growth, attract foreign investment, and promote entrepreneurship.
Key Features of the Entrepreneur MISA License:
Lower Fees: Offers significantly reduced licensing fees compared to regular MISA licenses for the first three years.
Flexibility: Allows startups to begin operations without requiring large capital investment or an established parent company. Can be started directly in Saudi Arabia without having foreign holding company.
Support for Growth: Provides access to various incentives, resources, and startup-friendly ecosystems.
Streamlined Process: Specifically tailored for startups, making the application & documentation process simpler compared to regular licenses.
How to Get an Entrepreneur MISA License:
Qualify for a Support Letter:
Startups must be part of an approved Incubator, Accelerator, or Venture Capital (VC) program recognized by MISA.
On successful completion of such a program, you can obtain a Support Letter from the incubator/accelerator, which is a mandatory requirement for applying for the Entrepreneur License.
Prepare Required Documents:
Passport copies of shareholders.
A copy of the Support Letter from the approved entity.
Business plan or project proposal showcasing your startup’s goals.
Any additional documents as required (e.g., Power of Attorney for a local consultant).
If the founders have Saudi Iqama (Resident Permit), a no objection letter is required from the current sponsor which should be attested by Chamber.
Submit the Application:
Create an account on the MISA Portal.
Upload the required documents and submit your application online.
Pay the Fees:
Licensing fees for the Entrepreneur MISA License are significantly lower:
SAR 2,000 per year for the first three years.
Increased fees apply after the initial three years.
Receive the License:
Once approved, MISA will issue your Entrepreneur License, allowing you to officially start operations in Saudi Arabia.
The approval process typically takes 5–7 business days.
Who Can Apply?
Foreign entrepreneurs and startups with innovative ideas or scalable business models, preferably having some technology element.
Startups participating in approved incubators or accelerators locally or internationally.
Businesses planning to operate in sectors aligned with Vision 2030 (e.g., technology, renewable energy, tourism, healthcare).
Why Choose the Entrepreneur License?
Cost Savings: Lower government fees compared to regular licenses.
Simplified Setup: No need for a parent company or high initial capital.
Access to Ecosystems: Benefit from networks, resources, and government incentives.
Now that you know what an Entrepreneur License is and its benefits, the next step is understanding how to get one. Stay tuned for our next post, where we’ll break down the process and explain how Navigate Saudi can support you every step of the way. 🚀
At Navigate Saudi, we strive to provide you with the most accurate and up-to-date information on setting up your company in Saudi Arabia. If you have any suggestions for corrections or updates, feel free to contact us at setup@navigatesaudi.com.
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