The commercial license is the official document that allows business owners to legally operate their commercial activities within the Kingdom of Saudi Arabia. With the growing investment environment in the country, it is essential for anyone looking to purchase commercial real estate or start a business to understand all the conditions and procedures related to obtaining a commercial license, including getting a store license and understanding the costs involved as per the new commercial store licensing law.

In this guide by REINVEST, we provide the steps to obtain a commercial license, from requirements and conditions to the online application method and expected costs.

Importance of the Commercial License for Entrepreneurs

The commercial license serves as legal proof of a structured business entity operating under regulations from competent authorities. It protects both investors and consumers, ensuring that business activities comply with the updated commercial store licensing law, developed to meet market evolution and investor needs.

Conditions for Issuing a Commercial License in Saudi Arabia

Before starting any commercial activity, the following conditions must be met:

A copy of the national ID of the license holder.
Commercial registration of the company or institution.
Property deed or valid lease agreement (minimum 6 months).
Building permit and completion certificate for the premises.
Cleaning services contract (waste collection) with a licensed company.
Safety report from Civil Defense (for instant activities).
Image of the store’s advertising board.
Interior and exterior photos showing the readiness of the location.
Sketch of the site and CCTV images.
Authorized electronic delegation from the Chamber of Commerce if there is an agent.
Investment license and ID proof if the investor is non-Saudi.

Procedures for Obtaining a Commercial Store License Electronically

The Ministry of Municipal and Rural Affairs enables online licensing through the 'Balady' platform by following these steps:

Log in via the National Unified Access portal.
Select 'Professional Licensing Services'.
Choose 'Simplified License Issuance Service'.
Select the municipality and authority relevant to the activity.
Fill in store information, activity type, and location.
Upload the required documents.
Submit the request for municipal review.
Schedule a site inspection by a municipal officer.
Upon approval, receive the invoice.
Pay the fees, then print the license and start operations.

Steps to Reserve a Trade Name

Trade name reservation is done through:

Visit the Ministry of Commerce website.
Choose 'Trade Name Reservation Service'.
Log in.
Enter the trade name details and business type.
Submit the request for online review and approval.

How to Check the Cost of a Commercial Store License via 'Balady'

The 'Balady' platform offers a municipal fee calculator to help store owners determine fees based on store size and location. Fees range from 1 to 300 SAR per square meter depending on city, activity type, and street classification. Check via:

Access the Balady platform.
Enter the commercial registration number.
Select the municipality.
Enter the license number.
Click 'Inquiry' to view detailed fees.

Steps to Renew a Commercial Store License

You can renew the license online via 'Balady' by:

Logging into the Balady portal using unified access.
Choosing 'Professional Licensing Services'.
Filling in store data.
Selecting the renewal duration.
Paying the fees.
Uploading required documents (lease contract, store photos, previous licenses...).
Confirming the request and printing the invoice.

How to Modify the Commercial License

The system allows license modifications for changes in activity, location, or ownership information by:

Accessing the Balady platform.
Selecting the business record.
Choosing the license to modify.
Updating the necessary information.
Submitting the request or paying the fees for instant changes.

How to Cancel a Commercial Store License

If the business stops operating, the license can be canceled online by:

Logging into the Balady portal.
Selecting 'Cancel Professional License'.
Filling in data and submitting the request.
Following up on the request status until cancellation is completed.

How Much Does a Commercial Store License Cost in Saudi Arabia?

License costs depend on several factors, including:

Type of commercial activity.
City and geographic location.
Store size.
Street classification (main or side street).

Fees are calculated according to municipal regulations and are detailed using the fee calculator on the 'Balady' platform.

In conclusion, obtaining a commercial license in Saudi Arabia requires a solid understanding of the conditions and proper steps to get a store license. Thanks to government facilitation and electronic services offered via the 'Balady' platform, issuing, renewing, or modifying a commercial license has become easier and more flexible. Whether starting a new venture or updating your license, following the procedures ensures your business operates within a legal, secure, and reliable framework.