Set Up a Trading & Distribution Company in Saudi Arabia

Trading & Distribution sector entry in Saudi Arabia

Saudi Arabia is the GCC's largest import market. Foreign trading companies (B2B distribution, consumer goods, industrial supplies) require a 100%-foreign-owned LLC under MISA's Trading activity, with a SAR 26.6M capital requirement — one of the highest in the region.

Recommended structure: 100%-foreign-owned LLC under MISA Trading activity. Capital requirement: SAR 26,666,667 (statutory minimum for MISA Trading), though phased deposit is allowed. Saudization band needed: Green to Platinum required (Trading sector quotas are elevated).

Trading is the most capital-intensive sector. Many foreign trading companies use a Saudi commercial agent (no entity needed) as a first-step alternative; Tamra advises on both routes. Tamra runs end-to-end trading & distribution-sector setups — MISA, sector licensing, CR, banking, GR, ongoing compliance and workforce administration.

Key facts

Trading & Distribution setup process

12–18 weeks (Trading licence has the longest MISA review)

1. Sector licensing pre-check. Verify the foreign parent's track record satisfies MISA (Trading), MoC, Saudi Customs, SFDA (for food, cosmetics, devices), SASO (for product certification) requirements before MISA submission.
2. MISA application. Submit MISA application under the appropriate sector activity code, with full attested parent-company documentation.
3. Sector regulator submission. Submit sector-specific licence applications in parallel with CR. MISA Trading licence drives the critical path.
4. Commercial Registration & Chamber. MoC issues the CR; Chamber of Commerce subscription is activated.
5. Operational portals. Activate Qiwa, Muqeem, GOSI, ZATCA, Mudad and any sector-specific portals.
6. Banking & GM Iqama. Open Saudi corporate bank account; issue GM Iqama for the appointed manager.
7. First hire / first invoice. Trading & Distribution entity becomes operational. Tamra continues as the managed-services partner for payroll, GR and Iqama.

Mandatory sector licences

• MISA Trading licence
• Saudi Customs registration
• SFDA registration (sector-dependent)
• SASO product certifications

Best-fit subsectors

• B2B industrial distribution
• Consumer electronics
• Auto parts
• Medical devices (SFDA-regulated)
• Food & beverage trading (SFDA-regulated)

Common rejection reasons

• Capital below SAR 26.6M without phased-deposit structure approved
• Sector-specific certifications missing (SFDA, SASO) for regulated products
• Saudi Customs registration not coordinated with CR — import shipments held

Frequently asked questions

Related resources

• Company Setup in Saudi Arabia
  End-to-end MISA, CR and government portal registration.
• MISA License Saudi Arabia
  The investor licence required for any 100% foreign-owned Saudi entity.
• Saudi Expansion Calculator
  Estimate the all-in cost of opening a Saudi entity.