Are you an international company seeking to obtain a public transportation license service in the Kingdom (KSA)? Your search ends here! With KSA’s economy witnessing continuous growth and an increasing demand for efficient transportation services, the country offers a highly conducive environment for startups in this industry. In this comprehensive guide, we will take you through the step-by-step process of establishing a successful transportation business in KSA, covering essential elements including legal requirements. Get ready for an enlightening journey as we embark on this venture together.
The Kingdom provides several areas in which investment in public transportation services can be made:
- Public transportation license service for buses within cities.
- Service for issuing a public transportation license by metro trains within cities
- Other licensing services for land transport
First: The service of issuing a license for public land transportation by buses within cities
This service is provided to international companies that wish to provide public land transportation services by buses within cities in the Kingdom.
Service documents
- The decision of the company’s board of directors of their desire to invest in the Kingdom, indicating the names of the partners, the capital, the percentage of each partner, the activity, the location, the appointment of the general manager, and the definition of his powers, certified by the Saudi embassy.
- A copy of the commercial register of the participating establishment certified by the Saudi Embassy.
- Providing proof of compliance with contract implementation periods in the past five years.
- Proof of financial ability to invest in proportion to the project capital and the share of each partner, and consistent with the plan
- The work provided for the project, according to the specified capital
Service terms and restrictions
- The total ratio of the Saudi partner/partners and the capital corresponds to the minimum limits specified by the type of activity
- The average revenues of the foreign partner company for the three years preceding the granting of the license must be equal to or more than 3 billion Saudi riyals. The size of its assets must not be less than 5.1 billion Saudi riyals.
- The foreign partner company must be licensed in at least two countries, and its employees must not be less than 10,000 workers.
- The minimum capital required to supply, operate, and maintain buses according to what is followed by the Ministry of Investment for service sector companies is 500,000 Saudi riyals.
- If there is a Saudi partner, a license from the Ministry of Transport/Public Transport Authority is required to practice bus transportation activity.
- Implementing the nationalization rates established in transportation services in force at the Ministry of Labor and Social Development, and any amendments to that.
- The register of establishments requesting a license is free of decisions to cancel their licenses inside or outside the Kingdom for the ten years preceding the request to grant the license.
- The register of establishments requesting a license must be free of any notices or penalties issued inside or outside the Kingdom related to traffic safety for the ten years preceding the request to grant a license.
- Approval for the use of public transportation in the event of disasters, crises, and wars under what is issued by the relevant authorities in the Kingdom of Saudi Arabia.
- The technical specifications of the product and its production method must conform to Saudi, Gulf, or international standards.
- Submitting annual plans to improve safety levels to the Public Transport Authority for review and review.
- The Saudi National ID/Privileged Iqama/Iqama/residency data, if one of the partners holds any of them or the commercial registry data of the participating Saudi companies must be entered while submitting the application.
Second: The service of issuing a license for land public transportation by metro trains within cities
This service is provided to international companies that wish to provide public land transportation services by metro trains within cities in the Kingdom.
Service documents
- The decision of the company’s board of directors of their desire to invest in the Kingdom, indicating the names of the partners, the capital, the percentage of each partner, the activity, the location, the appointment of the general manager, and the definition of his powers, certified by the Saudi embassy.
- A copy of the commercial register of the participating establishment certified by the Saudi Embassy.
- Providing proof of compliance with contract implementation periods in the past five years.
- Proof of financial ability to invest, commensurate with the project capital and the share of each partner, and commensurate with the business plan submitted for the project, and according to the specified capital.
Conditions and restrictions of the transport license
- The total ratio of the Saudi partner/partners and the capital corresponds to the minimum limits specified by the type of activity
- The average revenues of the foreign partner company for the three years preceding the granting of the license must be equal to or more than 3 billion Saudi riyals. The size of its assets must not be less than 5.1 billion Saudi riyals.
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- The minimum capital required to supply, operate, and maintain buses according to what is followed by the Ministry of Investment for service sector companies is 500,000 Saudi riyals.
- Implementing the nationalization rates established in transportation services in force at the Ministry of Labor and Social Development, and any amendments to it.
- The register of establishments requesting a license is free of decisions to cancel their licenses inside or outside the Kingdom for the ten years preceding the request to grant the license.
- The register of establishments requesting a license must be free of any notices or penalties issued inside or outside the Kingdom related to traffic safety for the ten years preceding the request to grant a license.
- Approval for the use of public transportation in the event of disasters, crises, and wars is issued by the relevant authorities in the Kingdom of Saudi Arabia.
- The technical specifications of the product and its production method must conform to Saudi, Gulf, or international standards.
- Submitting annual plans to improve security levels to the Public Transport Authority for review and review.
- The Saudi National ID/Privileged Iqama/Iqama/residency data must be entered if one of the partners holds any of them, or the commercial registry data of the participating Saudi companies while applying.
Third: The service of issuing other licenses for land transport
The service is provided to foreign establishments that wish to practice land transportation activities in the Kingdom at a rate of 100% in the following activities:
- “Public – Private” fare
- Transportation “school – tourist – teachers – subjects”
- Transporting pilgrims and visitors from inside and outside the Kingdom
- Transporting passengers by buses outside the Kingdom
- Directing taxis
Car rental – trucks – buses – car rental brokers – freight brokers
Service documents
- A copy of the commercial register of the participating establishment certified by the Saudi Embassy
- A copy of the national ID if one of the partners is a natural individual (who holds the nationality of one of the Gulf Cooperation Council countries) if his data is not registered in the Absher system.
- The financial statements for the last three financial years of the foreign company requesting a license, certified by the Saudi embassy.
- Submitting a business plan to open the company’s branches and locations mentioned in the economic feasibility study.
Service terms and restrictions
1. He must be present in three international markets for the same activity he wishes to practice.
2. He must have been certified to practice the same activity for over 10 years in his home country, and the establishment must be recognized by the Public Transport Authority for providing exceptional quality land transportation services.
3. The total ratio of the Saudi partner/partners and the capital agrees that the capital in practicing the activity that the company wishes to practice should not be less than 10 million riyals according to the minimum limits specified by the type of activity.
4. Commitment to implementing all obligations regulating the activity, including the standards and percentages of Emiratisation approved by the Ministry of Human Resources and Social Development, and establishing a mechanism for this.
5. The establishment that relies entirely on providing the service through technical channels is excluded from applying the requirements mentioned above.
6. If the rental activity involves vehicles without a driver, such as cars, trucks, buses, car rental brokers, or freight brokers, consequently, the establishment is exempt from the mentioned requirements.
7. Commitment to having a website that includes all the details related to the services provided by the company, in addition to allocating and establishing a call center and channels to receive complaints from workers, employers, or workers.
8. The data of the Saudi National ID/Privileged Residence/Iqama/if one of the partners holds any of them or the commercial registry data of the participating Saudi companies must be entered while applying.
Business Link: Your Pathway to Thriving in the Transportation Industry in KSA
The transportation sector in Saudi Arabia is flourishing, presenting numerous prospects for entrepreneurs and enterprises. Should you seek to initiate a transportation business venture in KSA, Business Link stands as your comprehensive solution for direction and assistance.
Why Opt for Business Link?
- Proficiency and Know-How: Our team possesses in-depth expertise in the transportation sector of Saudi Arabia.
- Individualized Support: We deliver customized guidance and aid to cater to your distinct business requirements.
- Economical Solutions: Our services come with competitive pricing, guaranteeing optimal returns on your investment.
Contact us today to kickstart your journey:
Don’t allow the intricacies of establishing a transportation business in KSA to hinder your progress. Contact Business Link now, and allow us to assist you in transforming your transportation business dreams into a tangible reality.
