License Renewals: What Businesses Need to Be Aware of

26 Sept 2025

Dunya Hassanein

Understanding the renewal requirements for key business licenses is essential for maintaining smooth operations and legal compliance in Saudi Arabia's dynamic business environment.

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Companies operating or setting up a foreign business in Saudi Arabia must remain vigilant about their license renewal obligations. Failing to manage renewals properly can result in serious operational disruptions, compliance violations, and significant business consequences.

Understanding the renewal requirements for key business licenses is essential for maintaining smooth operations and legal compliance in Saudi Arabia's dynamic business environment.

MISA License: Understanding Renewal Requirements

Foreign companies operating in Saudi Arabia must obtain a MISA (Investment) license as the foundation for legal business operations. This license, which is valid for a year, enables 100% foreign ownership and provides access to various government incentives and strategic business opportunities.

Essential Documentation:

Original MISA license copy
Active Commercial Registration (CR)
Current ZATCA certificate

Companies with inactive bank accounts, expired ZATCA certificates, or invalid commercial registrations face license rejection or revocation, making it crucial to keep all supporting documentation up-to-date ahead of the renewal process.

Commercial Registration (CR) Annual Confirmation: New Regulations in Effect

Under new regulations that took effect in April 2025, foreign businesses no longer need annual CR renewals. Instead, companies must confirm and update their registration information while paying the required fees.

What happens if you are late in updating CR Details?

Non-compliance with these new requirements can lead to CR suspension or cancellation, emphasizing the importance of staying current with regulatory changes. In the event of late renewals, foreign businesses can face the following scenarios.

After 90 days of non-confirmation: The CR will be “Suspended.”
After 1 year of non-confirmation: The CR will be “Canceled.”

During the suspension period, businesses can reactivate their revoked registration by supplying the required documentation.

General Manager’s Iqama: Consequences of Non-Renewal

The General Manager's Iqama represents a crucial element in the license renewal ecosystem. This document, required for the GM of Saudi-incorporated entities, creates a cascading effect when not properly maintained. Possible Implications of not renewing the Iqama on time may include:

MISA license renewal complications
Restricted access to government portals such as Qiwa, Muqeem, and Muddad
Potential bank account suspensions
Operational disruptions across business functions

How to Stay Compliant with Saudi Arabia's Compliance Practices

Successful license renewal management requires a comprehensive approach that considers the interconnected nature of Saudi Arabia's business regulatory environment. Companies must balance multiple renewal timelines while staying current with evolving regulations.

The consequences of non-compliance extend beyond fines to include operational suspensions, legal complications, and potential license revocation. These serious implications make professional renewal management a critical business function rather than an administrative afterthought.

If you’re unsure about your company's compliance status or need assistance in navigating the Saudi corporate practices. We encourage you to schedule a consultation with our experienced professionals to ensure that your business stays in sync with the compliance landscape in Saudi Arabia while freeing you to fully focus on fueling your business growth.

Frequently Asked Questions

1. How to renew a CR?

You are now required to complete an Annual Data Confirmation process, as described below

1.Access the Ministry of Commerce online platform

2. Sign in with your Absher account details

3. Navigate to "Commercial Registration Services."

4. Click on the "Annual Confirmation" option

5. Verify and modify your company information

6. Complete payment

2. How to renew Chamber of Commerce membership in Saudi Arabia?

After obtaining commercial registration, companies must register with the Chamber of Commerce (CoC) as a crucial step in the first stage of a successful market expansion.

To renew your membership, follow these steps:

Visit the Chamber of Commerce website (chamber.sa)
Log in to your business portal
Update membership information
Pay applicable renewal fees

3. How to cancel commercial registration in Saudi Arabia?

Your business's CR will be automatically cancelled if your business remains inactive for a year. Companies pursuing voluntary cancellation need to:

Present a cancellation petition to the Ministry of Commerce
Address all unresolved liabilities
Finalize tax and social insurance accounts
Hand over the CR documentation

4. What is a commercial registration certificate in KSA?

The Commercial Registration (CR) Certificate is your official authorization to start operating in Saudi. Without this document, you can’t bid on governmental projects through Eitmad or operate the company’s portals on Muqeem, Mudad, Qiwa, and GOSI, or issue the Saudization certificate.

5. What is the commercial registration fee in Saudi Arabia?

The registration fee is SAR 6,000, and the annual renewal fee is SAR 1,200.

How to check iqama renewal fees online?

You can check business iqama renewal fees through Absher.

6. How to calculate the renewal fee online?

The fee for issuing or renewing the Iqama annually is SAR 650. The three-month Iqama renewal fee is SAR 163, while the six-month Iqama renewal fee is SAR 325.

The iqama renewal fees for 9 months are SAR 488.