Obtaining a Commercial Registration (CR)—known locally as "Sijil Tijari"—is the first official step to starting a business in the Kingdom. It serves as your business's legal identity. While the process has been fully digitized through the Saudi Business Center and Ministry of Commerce, strict eligibility rules apply.
The following sections break down the requirements, costs, and common pitfalls.
Eligibility and Conditions
Before logging into the system, you must meet these non-negotiable criteria:
Age: You must be at least 18 years old.
Employment Status: You cannot be a government employee. Civil service laws generally prohibit government staff from holding a CR or engaging in trade.
Residency:
Saudi Nationals: Requires a valid National ID.
GCC Nationals: Requires a valid Passport/ID and registration in the Absher system.
Non-GCC Foreigners: Must possess a valid Investment License (MISA License) before applying for a CR. You cannot open a CR directly with just a standard residency (Iqama).
Documents and Information
For a standard Sole Proprietorship (Establishment), you rarely need to upload physical files if your data is up to date in Absher. However, you must have the following ready:
Active Absher Account: Used for identity verification via Nafath.
Trade Name: You must propose a unique name that does not conflict with existing brands. If you use your personal name (e.g., "Ahmed Al-Fulan Trading"), it is automatically approved. If you want a creative brand name, it must be reserved first.
Business Activity: You must select the specific ISIC (International Standard Industrial Classification) codes that match your business (e.g., "Retail sale of coffee").
Articles of Association (Companies only): If you are setting up an LLC or Corporation, you must submit the notarized Articles of Association (AoA).
Fees and Costs
The cost of a CR is split into two parts: the government fee and the Chamber of Commerce membership fee.
Ministry of Commerce Fee: SAR 200 per year for the main CR. (SAR 100 per year for branches).
Chamber of Commerce Fee: This is mandatory and varies based on the capital and class of the business.
Class 3 (Small businesses): Approximately SAR 800 per year.
Class 2 (Medium businesses): Approximately SAR 2,000 per year.
Excellent Class: SAR 10,000+ per year.
Total Initial Cost: For a typical small business, expect to pay around SAR 1,000 to SAR 1,200 total for a one-year registration.
Processing Time
Issuance: If all data is correct and the trade name is approved, the electronic CR is issued instantly. You can print it immediately after payment.
Trade Name Reservation: If you apply for a creative name, it may take 1 to 2 business days for a human reviewer to approve or reject it.
Why CR Applications Get Rejected
Rejections are usually automated or due to policy conflicts.
Reserved Trade Name: The most common reason. If your proposed name is too similar to an existing brand or contains prohibited words (e.g., "Royal," "Mecca," or non-Arabic names without exceptions), it will be rejected.
Restricted Activities: Selecting restricted activities (like military equipment, security services, or specialized finance) without pre-approval from the relevant ministry will block the issuance.
Government Employment: The system links to the GOSI/Civil Service database. If it detects you are a government employee, the application terminates immediately.
Business License (Municipal License) Requirements
Having a CR means your business legally exists, but it does not give you the right to open a shop or office yet. For that, you need a Business License (Rakhsa Baladiya) from the Ministry of Municipal and Rural Affairs (MOMRA).
Conditions for the License
Physical Location: You must have a physical shop, office, or warehouse. You cannot get a standard municipal license without a location (except for specific e-commerce or home-business licenses).
Rental Contract: You must have a valid electronic rental contract registered in the Ejar network. Paper contracts are not accepted.
Signage: You must install a shop sign that matches the trade name on your CR.
External Approvals:
Civil Defense: Required for high-risk businesses (restaurants, hotels, factories).
Specialized Ministries: e.g., Ministry of Health for clinics, Ministry of Sports for gyms.
Fees for Business License
Municipal fees depend on the size of the location (per square meter) and the "class" of the street or city.
License Fee: Typically ranges from SAR 2 to SAR 300 per square meter.
Waste Collection Fee: An annual fee for commercial waste services, often ranging from SAR 1,200 to SAR 10,000 depending on the activity type.
Inspection Fee: A fee for the municipal inspector's visit.
Official Steps to Finalize
Issue CR: Log in to the Saudi Business Center or Ministry of Commerce portal and issue the CR.
Rent a Space: Sign a commercial lease via Ejar.
Apply for License: Log in to the Balady platform.
Upload Proofs: Submit photos of the installed sign and the shop interior.
Pay Fees: Pay the municipal bill generated by Sadad.
Print: The license is issued digitally (QR code) and must be displayed visibly in the shop.
