Saudi Professional-Services & Consulting Licences | Khan Advisory
K GCC Briefing · Saudi Arabia · Sectors

Professional-services and consulting licences

Consulting is among the easiest activities to own 100% — and among the most commonly misjudged to license. A MISA registration and a CR get you a company; they don't, by themselves, let you practise a regulated profession.

Updated September 2026·6 min read·Khalid Khan Advisory
Professional licences, in four numbers
100%
foreign ownership for most consulting activities
SAR 25k
nominal capital typically written into the articles
2
layers of licensing: the CR activity, then the regulator
15%
VAT on professional services
01 · Two layers of licensing

The company, then the profession

For advisory work, the licence question has two distinct layers. Get the first and skip the second, and you have a company that can't legally do the thing it was formed to do.

01

The activity on your CR

Your Commercial Registration must explicitly list the activity — legal consultancy, accounting, management consulting, engineering. The CR defines what you're allowed to do; a mismatch means you're offside, and adding activities later is an amendment. Get the scope right at incorporation.

02

The professional regulator

Regulated professions need a licence or membership on top of the CR, from the relevant professional body — often backed by qualified, registered individuals. Providing a regulated service without it is illegal, not merely non-compliant.

02 · Which professions need a regulator

The body that sits above the CR

ProfessionRegulatorOn top of the CR
Legal consultancyMinistry of Justice / Saudi BarLicence + qualified lawyers
Accounting & auditSOCPARegistration + certified accountants
EngineeringSaudi Council of Engineers (SCE)Firm & key engineers registered
Healthcare, educationSector authoritiesA sector licence in addition to the CR
03 · Open vs regulated

Where a CR is enough — and where it isn't

CR is enough

Open activities

  • Management & strategy consulting
  • Marketing, advertising & PR
  • IT, software & digital services
  • General business services
CR + a professional body

Regulated activities

  • Law & legal consultancy
  • Accounting & audit
  • Engineering & design
  • Healthcare & education
The common trap

Management consulting is generally open and 100% foreign-ownable — which lulls firms into assuming everything advisory is. The regulated professions are the ones that need a body on top of the CR, and often qualified individuals standing behind the licence.

04 · The remote question

Advising from abroad — and the PE trap

Advising Saudi clients purely from abroad may not need a Saudi CR at all, if you have no local presence. The moment you have an office, staff, or habitually perform services in the Kingdom, you generally need a local entity and CR — and you may create a permanent establishment, bringing Saudi corporate tax with it.

Where consultancies drift offside

A project that keeps extending, a team that keeps flying in, or a local contact who starts acting for you can each turn “we're just advising remotely” into a taxable Saudi presence. Answer the presence question deliberately — see our note on permanent-establishment risk.

05 · Capital, history & tax

The practical setup facts

01

Little or no minimum capital

Service and professional licences typically carry no real minimum — a nominal SAR 25,000 is often written into the articles.

02

One-year parent history

MISA generally expects the foreign parent to show at least a year of operational history, with certified financials.

03

15% VAT

Professional services are subject to VAT once you cross the registration threshold, with Fatoorah e-invoicing.

06 · FAQ

Questions we get asked first

Can I own 100% of a consulting firm?

For most consulting and business-services activities, yes — management consulting, marketing, IT and digital services are generally 100% foreign-ownable with no local partner.

Do I need a professional licence beyond the CR?

For regulated professions, yes. Law, accounting and audit, engineering, healthcare and education all require a professional or sector regulator on top of the CR — usually with qualified, registered individuals.

Which professions are regulated?

Legal work (Ministry of Justice / Saudi Bar), accounting and audit (SOCPA), engineering (Saudi Council of Engineers), and healthcare and education (their sector authorities), among others.

Can I advise Saudi clients from abroad without a CR?

Possibly, if you have no local presence. But an office, staff, or habitually performing services in the Kingdom generally requires a local entity — and can create a permanent establishment, with Saudi tax attached.

What capital and tax apply?

Service licences usually need only a nominal capital (often SAR 25,000 in the articles); MISA expects about a year of parent history; and professional services are subject to 15% VAT once registered.

The bottom line

License the activity precisely — and the profession, if it's regulated

Scope the CR activity exactly, add the professional-body registration where your profession is regulated, and answer the presence question deliberately. For most advisory firms the path is clean and 100% foreign-owned — but “we're just consultants” is not a reason to skip the licensing layer that turns a company into a legally practising firm.

Licensing an advisory or professional firm?

We scope the CR activity correctly, arrange the professional-body registration your profession needs, and keep you clear of a permanent-establishment problem.

Speak to an Advisor →

Related reading

This article is general information, current as of 2026, and is not legal or tax advice for any specific situation. Confirm current activity scopes and professional-licensing rules with MISA and the relevant regulator before acting.