Licensing Requirements for Recruitment Agencies in Saudi Arabia
A step-by-step guide to licensing requirements and the incorporation process for starting a manpower supply business in Saudi Arabia.
A step-by-step guide to licensing requirements and the incorporation process for starting a manpower supply business in Saudi Arabia.
This guide will show you the ropes of starting a manpower supply business in Saudi Arabia, presenting a step-by-step guide that includes information on the licensing requirements and registration process.
Saudi Arabia's expanding economy and ambitious Vision 2030 initiatives have unlocked a surging demand for skilled professionals across sectors, fueling the growth of its recruitment landscape.
For international manpower supply agencies, establishing a business in Saudi Arabia offers access to one of the region's most dynamic labor markets, where skilled talent and workforce solutions are essential to powering giga-projects, emerging industries, and economic diversification initiatives.
Steps to Incorporate Your Manpower Supply Business in Saudi Arabia
Below is the exact description of the three-stage business setup roadmap. The timeframe for incorporation typically lasts 6 months.
Before beginning the incorporation process, a company must ensure that all necessary documentation is prepared and filed.
Legal Entity Establishment (Projected timeline: 1 month)
The journey to starting a manpower supply business in Saudi Arabia starts with laying the proper legal foundation for your establishment.
- Obtain a MISA Investor License (valid for one year)
- Reserve company name
- Draft and notarize Local Articles of Association (AoA)
- Secure Commercial Registration (CR) from the Ministry of Commerce
- Obtain the Chamber of Commerce (CoC) Registration
Authorization and Hiring (Projected Timeline: 2-3 months)
Afterward, you must proceed with authorizing operations and onboarding staff to create an effective market presence.
- Obtain the official company seal
- Register with the Ministry of Labor
- Enroll with GOSI for employee insurance
- Register the national business address
- Issue a General Manager (GM) visa
- Register with ZATCA for VAT compliance
Residency and Banking (Projected timeline: 3 months)
Lastly, the process ends with completing the residency requirements and finalizing the necessary steps to have an active corporate bank account.
- Activate the Chamber of Commerce (CoC) account
- Obtain Health Insurance for GM
- Complete GM medical check-up
- Issue GM's Iqama (residency permit)
- Register with Muqeem
- Register with Absher
- Register with Qiwa
- Register with Mudad
- Open a corporate bank account with a Saudi bank
Understanding Manpower Supply Business Licensing Requirements
After formalizing their presence, manpower supply agencies in Saudi Arabia must obtain the appropriate recruitment license.
In Saudi, recruitment agencies can choose between two distinct license types, depending on their operational scope.
License Type: Local Recruitment License
This license enables the agency to hire and place Saudi nationals within local companies operating in the Kingdom.
License Type: International Recruitment License
This license enables the agency to hire and place both Saudi nationals and foreign workers in local and overseas organizations.
Employment Regulations for Recruitment Agencies
Staffing businesses must follow specific rules to operate legally:
- Recruitment Age Requirements: Male workers aged 21 or older and female workers aged 22 or older
- Minimum Wage Compliance: Ensure a minimum wage of SAR 4,001 for recruited employees
- Iqama Requirements: All foreign employees must obtain Saudi Iqamas, which usually take about three months to process
With Saudi Arabia's path towards Vision 2030, labor-intensive sectors like construction, manufacturing, and IT have seen rapid employment growth. Starting a manpower supply agency in Saudi Arabia ensures immediate access to diverse opportunities across multiple high-growth sectors
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