Overview
The Trading and Distribution License is the foreign-investment license issued by the Ministry of Investment (MISA) that lets a non-Saudi investor import, export, and distribute goods by wholesale and retail inside Saudi Arabia. Under the 2025 Investment Law, full 100% foreign ownership of a trading company is permitted, but the trading activity carries its own capital and commitment conditions. For a wholly foreign-owned trading entity, MISA typically requires a minimum capital of around SAR 30 million, evidence that the group already operates in at least three countries, and a commitment to invest a substantial amount (commonly cited in the range of SAR 200–300 million) over the first five years, together with Saudization and localization targets. An alternative structure — bringing in a Saudi partner holding at least 25% — generally lowers the capital threshold significantly (to roughly SAR 26.6 million) and removes the multi-country track record requirement.
This license is what legally separates a genuine importer-distributor from a service or contracting entity: it permits you to clear goods through Saudi Customs in your company's name, hold inventory, sell to retailers and end consumers, and operate showrooms, warehouses and e-commerce stores. It matters because trading is one of MISA's more demanding categories — the high capital floor, the multi-country eligibility test, and the negative list of restricted activities mean structuring mistakes are costly, and goods such as food, pharmaceuticals, cosmetics or electronics require additional approvals from regulators like the Saudi Food and Drug Authority (SFDA) or the Saudi Standards Authority (SASO). Getting the activity codes, capital and approvals right from day one protects your customs clearance, your bank account, and your Saudization standing.
Activities covered
Importing goods into Saudi Arabia and clearing them through Saudi Customs in the company's name.
Wholesale distribution and bulk supply to retailers, institutions and other businesses.
Retail sale to end consumers through physical stores, showrooms and outlets.
Export of goods from the Kingdom to regional and international markets.
Operating e-commerce stores and online marketplaces selling physical products.
Operating warehouses, distribution centers and inventory for stocked goods.
Who is it for?
International brands and manufacturers wanting to import their own products and distribute directly to Saudi retailers and consumers.
Wholesale and e-commerce operators building inventory, warehousing and last-mile distribution inside the Kingdom.
Regional trading houses and GCC groups consolidating their import-export operations under a 100% foreign-owned Saudi entity.
How we issue it for you
Structure and activity mapping
We map your product lines to the correct ISIC trading activity codes, confirm none fall on the negative list, and design the optimal ownership and capital structure (100% foreign vs. a Saudi-partner structure) against the eligibility conditions.
MISA investment license application
We prepare and submit your MISA application with attested corporate documents, financials and the capital plan, then manage MISA's review and queries until the Trading and Distribution License is issued.
Commercial Registration and Articles
We draft the Articles of Association, register the company with the Ministry of Commerce, obtain the Commercial Registration (CR), and complete the national address and Chamber of Commerce membership.
Bank account and capital deposit
We open the corporate bank account, deposit the required capital, and obtain the bank certificate evidencing capital — a prerequisite that customs and suppliers will rely on.
Operational set-up and import readiness
We complete municipal (Baladi) and any sector licenses, register with Customs and the import-export platform, set up GOSI, Qiwa and Saudization, and issue investor visas so you can trade.
Requirements
Attested commercial registration / certificate of incorporation of the parent company, plus audited financial statements (typically for the last financial year), and — for the 100% foreign-owned route — evidence the group already trades in at least three countries.
Evidence of paid-up or committed capital meeting the MISA threshold for trading (around SAR 30 million for a fully foreign-owned entity), deposited into the company's Saudi bank account.
Passports and details of shareholders and the proposed manager, with a board resolution authorizing the Saudi investment and the legal structure.
Verification that the intended trading activities are not on MISA's negative list, plus any sector approvals (e.g., SFDA, SASO) for regulated goods.
Cost & timeline
As a guide, MISA suspended its license issuance and renewal fees for 2026 (issuance was previously around SAR 12,000 and renewal higher), and the MISA license itself is typically issued within roughly 3–10 business days; full set-up including CR, bank, capital deposit and operational licenses usually runs several weeks. The defining cost of a trading license is the capital requirement — commonly around SAR 30 million for a fully foreign-owned entity — not government fees. All government fees are paid at cost and exact figures and thresholds should be confirmed with a consultant for your specific activities, as amounts and conditions change.
Frequently asked questions
Yes. Under the 2025 Investment Law, 100% foreign ownership of a trading and distribution entity is permitted, provided the activity is not on the negative list. The trade-off is the conditions: MISA typically requires around SAR 30 million in capital, evidence the group already trades in at least three countries, and a multi-year investment commitment with Saudization targets. We confirm the current threshold for your case before you commit.
Often, yes — by structuring the company with a Saudi partner holding at least 25%, the capital threshold for the trading activity is generally reduced significantly (to roughly SAR 26.6 million) and the three-country track record condition no longer applies. We model both the 100% foreign-owned route and the Saudi-partner route so you can weigh capital, control and timeline before deciding.
Yes. Regulated goods need sector approvals on top of the MISA license — for example food, cosmetics and pharmaceuticals fall under the Saudi Food and Drug Authority (SFDA), and many products require SASO conformity certificates and SABER registration for customs release. We identify every approval your product range needs and handle the registrations.
The MISA license is usually issued within roughly 3–10 business days once documents are complete, but trading readiness depends on the full chain: Commercial Registration, bank account and capital deposit, customs and import-export registration, and any sector approvals. Realistically this is a several-week process, which we run in parallel to get you import-ready as fast as compliance allows.