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Wed Jun 12 2024Admin

Engineering Consultancy License in Saudi Arabia

The Saudi Arabian engineering consultations company provides a comprehensive range of services associated with engineering projects, including the design and supervision of residential and commercial projects. Aside from the administration of construction projects, the organization and planning of cities, and the extension and maintenance of buildings. And in addition to drainage, heating, and ventilation. To establish an engineering consulting company in Saudi Arabia, it is necessary to comply with the terms and conditions established by governmental bodies and stakeholders in the Kingdom. The most critical terms and conditions will be outlined in this article to guarantee adherence to applicable laws and regulations.

Setting Up an Engineering Consultations Company in Saudi Arabia

The following conditions must be satisfied in order to obtain an engineering consultancy license in Saudi Arabia:
  1. Qualifications and Authorizations: The applicant for the license must possess the requisite educational qualifications or statutory approvals that are pertinent to the engineering disciplines in which they intend to practice.
  2. Good Conduct: The applicant for the engineering consultancy license must have a good reputation and conduct and must not have been convicted of any dishonesty.
  3. Equipment and Technical Staff: The license holder must provide the technical staff, equipment, devices, and tools compatible with the type and size of the engineering works and activities he intends to practice.
  4. Supervision and Management: The license encompasses supervision and administration throughout Saudi Arabia, as well as a qualified manager to oversee each branch. All violations and transgressions from these branches are the responsibility of the license holder and the manager. The branches are automatically updated when new activities are introduced to the main branch.
  5. Approval and Supervision: When opening any branch, the license holder is required to obtain MISA approval in accordance with the specified conditions. The branch manager must be a Saudi engineer and not in conflict with any other regulations.
  6. Advertising and Promotion: The license holder is required to display the license and accreditation certificates for technical personnel, as well as the official working hours, on a signboard. A maximum of five accreditation certificates. The license holder is required to display the license and accreditation certificates for technical personnel, as well as the official working hours, on a signboard. A maximum of five accreditation certificates.
  7. Partners and Legal Entities:With the exception of specified activities like insurance, reinsurance, and telecommunications, a Saudi partner is not necessary for the majority of investments. Saudi citizens may enrol in the organization in order to obtain a professional license.
  Consultancy License Requirements in Saudi Arabia
  • The scientific certificates must be accompanied by a professional license from the Saudi Board of Engineers, or if a license is already in existence in the native country, it must be included. The certification of all documents must be in accordance with the targeted activity and the specialization.
  • Owning a company in the home nation or three other countries provided that it has been established for more than 10 years. The minimum requirement for all other activities is a minimum of one year of experience.
  • A copy of the passports of the proprietors and the CEO, indicating whether he is a resident or non-resident of the Kingdom. • The company must have financial statements from the previously year. The company's profits must surpass the equivalent of SAR 300,000.
  • Foreign companies are not required to have 75% Saudi Arabians in any sector, as per the Ministry of Investment.
  • A bank guarantee is required from the new company.
In the event that one of these conditions is not satisfied, a 25% Saudi partner must possess the requisite educational qualification for the engineering consultancy license.  The partner must be qualified and enrolled with the relevant authorities, and they must have achieved over five years of experience in the field.

Legal Entities of Consultancy Companies in Saudi Arabia

  1. A sole proprietorship with limited liability or a limited liability company are the only legal entities that are permitted to operate in Saudi Arabia. In addition to a foreign company's branch or a joint stock company. In the Kingdom, the following entities are among the most frequently encountered legal forms:
  • A branch of a foreign corporation The following conditions must be satisfied in order to establish a subdivision of a foreign company in Saudi Arabia:
  • Employ the same trade name and participate in the same activities as the parent company.
  • Designate a single executive director.
  • Other corporations are prohibited from acquiring, partnering with, or opening branches.
  1. Independent Limited Liability Company
The foreign investor may acquire the following advantages by establishing an independent limited liability company:
  • It has the option of adopting either the same trade name or a distinct, meaningful Arabic name.
  • One or more directors with varying or equal powers.
  • It is capable of acquiring shares in other companies, entering into tenders, and purchasing real estate.
  • It holds 100% of the parent company's capital.
The establishment of an engineering consultation company in the Kingdom of Saudi Arabia is a profitable strategy and an essential opportunity for engineers and industry experts. The Kingdom's political and economic stability, as well as its advanced infrastructure. These privileges motivate entrepreneurs who aspire to offer engineering services on a comprehensive professional scale. Furthermore, they promote the integration of foreign investments into the Saudi market and create an optimal environment for the growth and innovation of aspiring entrepreneurs. For more information connect with CIG