Saudi Arabia is rapidly emerging as a sought-after destination for events, fueled by the ambitious Vision 2030 and the recent success in securing Expo 2030. With the potential of hosting events like the FIFA World Cup, the country’s entertainment industry is experiencing unprecedented growth.
If you’re an event organizer looking to capitalize on this momentum, securing the right licenses is crucial. Let’s delve into the comprehensive process of obtaining an event management license in Saudi Arabia.
Do You Need An Event Management License in Saudi Arabia?
Absolutely. Government regulations mandate obtaining a business license for any commercial activity. Undertaking events without proper licensing not only attracts hefty fines but also hinders essential aspects like opening a bank account, generating official invoices, and obtaining necessary permits for your events.
Factors To Consider Before Applying For A Business License In Saudi Arabia
Determine the Right License
The initial step is to identify the appropriate license for your event management business. For organizing events, a service license is required. The Saudi government provides a comprehensive list of licenses, each tailored to specific business activities.
Some licenses permit 100% foreign ownership, while others necessitate a percentage of Saudi ownership. It is essential to ascertain the minimum capital requirement, which varies depending on the license type.
For opening an event management and organization company, businesses are required to have a service license with a capital requirement of SAR 25,00. A service license in Saudi Arabia can be issued with 100% foreign ownership.
Note: To apply for a service license, the business should be established outside of Saudi Arabia for more than 1 year and should not be a sole proprietorship
Determine Company Structure
The next step is to choose the most suitable company structure for your event management business. Options include Limited Liability Co (LLC), Limited Liability One-Person Company, Joint Stock Company, Foreign Company Branch, and Solidarity Professional Company. The selection should align with your business goals and ownership preferences.
How To Get An Event Management License In Saudi Arabia
In Saudi Arabia, business licenses are issued by the Ministry of Investment, also known as MISA. The first step to obtaining an event management license in Saudi Arabia is to get a MISA license and Commercial Registration.
Below is the process for getting the MISA License and Commercial Registration for your business.
How To Get a MISA License and Commercial Registration
Step 1: Choose Company Structure
Decide on the company structure that best suits your event management business. Selecting the appropriate company structure sets the foundation for your business. The Saudi government allows you to choose from Limited Liability Co (LLC), Limited Liability One-Person Company, Joint Stock Company, Foreign Company Branch, and Solidarity Professional Company. Considerations include liability, ownership distribution, and the ability to expand or collaborate in the future.
Step 2: Documentation
Before applying for the MISA license, ensure all prerequisites are met. This includes documentation related to your chosen company structure, financial statements, and other essential paperwork.
Documents required for applying for a MISA license include but are not limited to:
- A copy of the commercial registration of the shareholding partner certified by the Saudi Embassy or a copy of the national identity, if one of the partners is a natural person holding the nationality of one of the GCC countries, or a copy of the national identity if one of the partners is holding the Saudi nationality and a statement issued by “ABSHAR” System to prove the profession; or a copy of the commercial registration for Saudi companies.
- Financial statements of the last financial year of the applicant’s foreign company and certified by the Saudi Embassy.
- The name and address of the business
- The type of business activities that will be conducted
- The names and nationalities of the business owners
Find the full list of documents here.
Step 3: Name Reservation
Once the company structure and documentation have been finalized, the next step is to choose and reserve a name for the business. The name should not be previously registered in the system. If establishing a branch, secure a license with the same name as the parent company. Subsidiaries can choose a similar trade name with an appended word.
Click here to reserve a business trade name on MISA’s portal.
Step 4: Drafting the Articles of Association and Memorandum of Association
The next step in the licensing process required crafting a robust Articles of Association (AoA) and Memorandum of Association (MoA) that will act as a blueprint for your company’s operational rules and shareholder agreements.
Step 5: Commercial Registration (CR) Issuance
Once the AoA and MoA have been issued and approved, MISA will issue the company’s Commercial Registration, which is one of the most important steps in obtaining a business license in Saudi Arabia.
After the commercial registration has been issued, the main event management, which is issued by the General Entertainment Authority of Saudi Arabia, can be processed.
How To Get An Entertainment License From GEA In Saudi Arabia
The General Entertainment Authority (GEA) is the regulatory body responsible for issuing licenses for events and related activities in Saudi Arabia. Any business that wants to host live performances and events in Saudi Arabia has to apply for an entertainment license through the GEA’s online portal.
The entertainment license includes two types of activities.
- Entertainment Events: Includes permits to organize entertainment events, hold entertainment shows, and conduct live shows in restaurants and cafes.
- Support Activities: Encompasses licenses for managing artistic and entertainment talents, operating entertainment facilities, crowd management, and organization accreditation, and entertainment activities ticketing accreditation.
GEA’s Entertainment License Process
Step 1 – Submit Application:
Once the commercial registration has been issued, the application for the entertainment license must be issued electronically through GEA’s online portal
Step 2 – No Violations
The business owners must ensure that the content of the entertainment or support activity does not violate the culture and values of the Kingdom.
Step 3 – Payment
The full financial fees must be paid before the license is issued.
Step 4 – Meet All Conditions
The license will only be issued once the owners have fulfilled any other conditions specified in the Investor’s Guide or required by the Authority.
Apply for a business entertainment license through GEA’s official portal.
GEA Rules & Regulations
One of the most important aspects of holding an entertainment license in Saudi Arabia is compliance with GEA’s guidelines and regulations. Violations may result in warnings, facility closures, or license withdrawal. Some of these regulations include:
- Observing Islamic values and social culture in the Kingdom.
- Not harming individuals or entities in any way.
- Not committing any act that would violate public order or public morals.
- Obtaining the Authority’s approval before announcing the entertainment or support activity, while complying with the guidelines issued by the Authority.
- Taking all necessary security and safety measures at the entertainment or support activity site, including ensuring the maintenance of the equipment and buildings used in the entertainment activity, and other approved safety and security obligations.
- Not using the Authority’s logo without prior official approval from the Authority.
- Ensuring that all legal documents of the license applicant are valid.
- Applying all guidelines for entertainment and support activities approved by the Authority.
Find the full list of GEA’s rules and regulations here.
Once GEA has issued the Entertainment license, business owners can apply for site license and start their business operations in the kingdom.
Event Permit Request
Before hosting an event in Saudi Arabia, an Event Permit must be obtained from GEA through the online portal. This individual permit must be issued for each event hosted under the business’s management. The application process involves submitting a preliminary approval request, providing essential documentation, and obtaining necessary permits from relevant authorities which takes approximately 30 days to process.
Pre-Requisites
- Submit a preliminary approval request 60 days in advance.
- Possess a commercial register indicating the activity of organizing entertainment events.
- Obtain site owner approval.
- Provide necessary permits from relevant authorities.
- Furnish a certificate of insurance for civil liability claims.
- Submit conformity certificates for installation safety.
- Present an operational plan for the event.
- Be a registered organizer with GEA.
Process
- Access the e-services portal.
- Enter the entertainment event permit service.
- Log in or register as a new user.
- Input event and facility information.
- Provide details about the event and activities.
- Enter attendance information and attach the required documents.
- Submit the request.
- Receive a response via email indicating authorization or refusal.
Apply for an Event Permit through GEA’s official portal
As it opens up for businesses from around the world, Saudi Arabia holds a lot of promise as one of the prime destinations for future events. The country has already hosted some of the biggest entertainers from around the world, including Metallica, David Guetta, Calvin Harris, Bruno Mars, Majid Al Mohandis, and many more, and is expected to become one of the most thriving economies in the near future.
For event organizers planning to capitalize on the Kingdom’s growth, this is the right time to get started with the process of running operations in Saudi Arabia. Use this comprehensive guide as your step-by-step companion in the process, and get in touch with us to learn more about hosting events in Saudi Arabia.
