How to start a transportation business in Saudi Arabia?

Starting a Business in Saudi Arabia: Step-by-Step Guide

Are you an international company looking to offer public land transport services in Saudi Arabia? Here’s a step-by-step guide to help you navigate the process of obtaining a license to operate buses within cities in the Kingdom:

### 1. Prepare the Required Documentation

- Board Decision: Obtain a Board of Directors' decision stating your company’s intent to invest in Saudi Arabia. Ensure it includes details like shareholders' names, capital, shares, activity, location, and the General Manager’s appointment and powers. This document must be authenticated by the Saudi Embassy.

- Commercial Register: Secure a copy of your company’s Commercial Register from the country of incorporation, duly authenticated by the Saudi Embassy.

- Proof of Commitment: Provide evidence of your company’s commitment to fulfilling contracts over the past five years.

- Financial Capability: Demonstrate your financial capability in line with the project’s capital and the requirements outlined in Section 11.03 of the services manual.

### 2. Meet the Service Rules and Restrictions

- Saudi Shareholder Consistency: Ensure consistency between the Saudi shareholder's percentage and the capital requirements as per Section 11.03.

- Revenue and Asset Requirements: Your company should have an average revenue of at least 3 billion Saudi Riyals and assets worth 1.5 billion Saudi Riyals over the past three years.

- International Licensing: Your company must be licensed in at least two countries and employ at least 10,000 people.

- Capital for Operations: Ensure that your company’s capital for supply, operation, and maintenance of buses meets the Ministry of Investment’s minimum requirement of 500,000 SR.

- Compliance with Nationalization: Apply the nationalization percentages for transportation services as per the Ministry of Labor and Social Development.

- No License Revocations: Your company must have a clean record with no license revocations for the past ten years.

- Safety Compliance: Ensure your record is free of traffic safety penalties or violations in the last ten years.

- Crisis Compliance: Agree to use public transportation services in events of disasters, crises, and wars, as directed by Saudi authorities.

- Technical Standards: Ensure that your products and services meet Saudi, Gulf, or international standards.

- Security Improvement Plans: Submit annual plans to improve security levels for review by the Ministry of Public Transport.

### 3. Submit the Application Electronically

- During your electronic application, include the Saudi national identity, Premium residence, or commercial registration data for any Saudi partners.

### 4. Pay the Required Fees

- License Fee: Pay an annual license fee of 2,000 SR for up to five years.

- Subscription Fee: Pay 10,000 SR for the first year to receive services from the Ministry of Investment’s investor relations centers. For subsequent years, the subscription fee is 60,000 SR.

- Payment Deadline: Ensure all fees are paid within 60 days of bill issuance to avoid service cancellation and the need to reapply.

Following these steps will ensure a smooth process for establishing your public transport business in Saudi Arabia. With the right preparation and adherence to the outlined requirements, you’ll be well on your way to contributing to the Kingdom’s thriving public transport sector. ???? #SaudiArabia #BusinessSetup #PublicTransport #InvestInSaudiArabia #misalicence #misallc #mesallc #opencompanyinsaudiarabia #ksabusinesssetup #saudibusinesssetup #misaservices #misatransportationlicense

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