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License for Scientific and Technical Office
in Saudi Arabia
When foreign companies engage a Saudi agent to distribute their products within the Kingdom, they often aim to establish a scientific and technical office. This office is intended to assist agents, distributors, and consumers with the products and conduct product research and market surveys.
Additionally, the office can provide a report to the parent company based on market research. It is important to note that while the technical and scientific office (TSO) can conduct liaison activities to provide technical assistance, it is not permitted to engage in commercial activities.
Read our blog to learn more about the Technical and Scientific Services Office in Saudi Arabia.
Transport Sector
in Saudi Arabia at a Glance
The Significance of the Transport Sector in Saudi Arabia
Licensing Requirements for a Scientific and Technical Office in Saudi Arabia
License to Practice Bus Public Transportation within Cities
This license permits international companies to operate public bus transportation services in cities within the Kingdom of Saudi Arabia.
Required Documents
- The Company’s Board of Directors’ resolution indicating their plan to invest in the Kingdom of Saudi Arabia, listing the names of shareholders, capital amount, shareholders’ shares, business activity, location, and the appointment of General Manager and his powers, authenticated by the Saudi Embassy.
- A copy of the business entity’s commercial registry from its country of origin, with authentication from the Saudi Embassy.
- Evidence demonstrating adherence to contract completion timelines in the previous five years.
- Documentation showing financial capability aligned with the project’s capital requirements, shareholder contribution, consistency with the project’s implementation plan, and in accordance with the financial restrictions established for the type of activity.
Rules and Restrictions
- Alignment of the Saudi shareholder(s) percentage and capital with the financial restrictions outlined for the type of activity.
- The foreign company’s average revenue over the past three years prior to the license grant must be at least 3 billion Saudi riyals, with a minimum asset value of 1.5 billion Saudi riyals.
- The foreign company must hold licenses in at least two countries and have a minimum of 10,000 employees.
- The minimum capital requirement for bus procurement, operation, and maintenance must meet the Ministry of Investment’s standards for service sector companies (500,000 SAR).
- In the case of a Saudi shareholder, a copy of the Department of Transportation/Public Transportation Authority license for bus transportation activities is required.
- Compliance with the nationalization quotas set by the Ministry of Labor and Social Development for transportation services, as amended.
- The establishment’s record requesting the license must not include any previous license revocations, either inside or outside of Saudi Arabia, within the ten years prior to the license request.
- There should be no record of fines or penalties related to traffic safety, either inside or outside of Saudi Arabia, in the ten years prior to the license request.
- Approval from the relevant authorities in Saudi Arabia for the use of public transportation during emergencies, crises, and wars.
- Technical specifications and production processes must adhere to Saudi, Gulf, or international standards.
- The applicant must submit annual plans for improving security levels to the Public Transport Ministry for review.
- The applicant must provide data of the Saudi national identity, premium residency, residency, or commercial registration data for any participating Saudi companies when submitting the electronic application.
Licensing Requirements for a Scientific and Technical Office
This license is for foreign companies that distribute their products through Saudi agents across the Kingdom and intend to open an office to provide scientific and technical services to agents, distributors and consumers of their products.
Required Documents
- You will provide the following:
- A copy of the commercial register of the participating entity authenticated by the Saudi Embassy.
- A copy of the agency authorising the agent or distributor.
Rules and Restrictions
- The scientific and technical office will be required to conduct market feasibility studies on the company’s activity and prepare reports for the main centre. An annual summary of its activities must be submitted to the Ministry of Investment.
- The office is prohibited from performing any contracts, commercial activities, or investments in the Kingdom directly or indirectly. It is also prohibited from charging fees for training Saudi technicians.
Obtain Your Scientific and Technical Office License in Saudi Arabia with Emerald
Emerald is a leading service provider in Saudi Arabia that can assist foreign companies and investors obtain a license for their scientific and technical office (STO) in the Kingdom. We offer services to streamline the licensing process, ensuring to meet all requirements and submit all necessary documents on time.
Reach out to us for swift Transport License acquisition.License to Practice Bus Public Transportation within Cities
This license permits international companies to operate public bus transportation services in cities within the Kingdom of Saudi Arabia.
Required Documents
- The Company’s Board of Directors’ resolution indicating their plan to invest in the Kingdom of Saudi Arabia, listing the names of shareholders, capital amount, shareholders’ shares, business activity, location, and the appointment of General Manager and his powers, authenticated by the Saudi Embassy.
- A copy of the business entity’s commercial registry from its country of origin, with authentication from the Saudi Embassy.
- Evidence demonstrating adherence to contract completion timelines in the previous five years.
- Documentation showing financial capability aligned with the project’s capital requirements, shareholder contribution, consistency with the project’s implementation plan, and in accordance with the financial restrictions established for the type of activity.
Rules and Restrictions
- Alignment of the Saudi shareholder(s) percentage and capital with the financial restrictions outlined for the type of activity.
- The foreign company’s average revenue over the past three years prior to the license grant must be at least 3 billion Saudi riyals, with a minimum asset value of 1.5 billion Saudi riyals.
- The foreign company must hold licenses in at least two countries and have a minimum of 10,000 employees.
- The minimum capital requirement for bus procurement, operation, and maintenance must meet the Ministry of Investment’s standards for service sector companies (500,000 SAR).
- In the case of a Saudi shareholder, a copy of the Department of Transportation/Public Transportation Authority license for bus transportation activities is required.
- Compliance with the nationalization quotas set by the Ministry of Labor and Social Development for transportation services, as amended.
- The establishment’s record requesting the license must not include any previous license revocations, either inside or outside of Saudi Arabia, within the ten years prior to the license request.
- There should be no record of fines or penalties related to traffic safety, either inside or outside of Saudi Arabia, in the ten years prior to the license request.
- Approval from the relevant authorities in Saudi Arabia for the use of public transportation during emergencies, crises, and wars.
- Technical specifications and production processes must adhere to Saudi, Gulf, or international standards.
- The applicant must submit annual plans for improving security levels to the Public Transport Ministry for review.
- The applicant must provide data of the Saudi national identity, premium residency, residency, or commercial registration data for any participating Saudi companies when submitting the electronic application.