The executive regulations adopted by the Ministry of Municipal and Rural Affairs for the Municipal Licensing Procedures System and the Guide to Municipal Licensing Requirements for Professional Activities, which incorporates the requirements of relevant government agencies through an automated link to the “Baladi” portal.
Through these regulations, the Ministry has specified the conditions for municipal licensing, whereby a municipal license to open a business is granted in accordance with statutory eligibility requirements: the license applicant must be a Saudi national at least 18 years of age, and licensed to conduct the activity, or a foreign investor licensed to conduct the activity.
Right to Use the Property
The regulations include the legal right to use the property, such that the license applicant must be the owner of the property or hold a lease or investment contract issued by an authorized entity with a term of at least one year. The regulations also specify, as part of the municipal licensing conditions, that the municipal requirements for the activity for which a license is sought must be met at the site, and that the site’s coordinates must be recorded in the license, along with the area specified in both written and numerical form, as well as the building, including the type of building and its number in accordance with the numbering procedures.
The provisions of the regulations on municipal licensing also include the approval of the government agency overseeing the activity, the approval of the Civil Defense, and the payment of municipal fees and fines.
Secretariats and Municipalities Licensing
According to the regulations, the municipal authority or municipality issues building permits for all types of buildings after verifying compliance with the construction standards required by the Ministry of Municipal and Rural Affairs, the Civil Defense, and the government agencies overseeing the activity, following a request submitted by the license applicant. This request must include a copy of the property owner’s identification and a copy of the property title deed, along with the fulfillment of all building permit requirements and conditions communicated to the engineering offices.
License Validity Period
The regulations specify the duration of the municipal license to open a business for any activity subject to the supervision of the Ministry of Municipal and Rural Affairs as "one year" and no more than (3) years, except for activities related to public health, hazardous activities, gas stations, or auto service centers, for which the duration is one year. The regulations also specify that the duration of a municipal construction permit is (3) years, renewable.
Mechanisms for Submitting License Applications
Regarding the procedures for submitting license applications, the Ministry emphasized its commitment to coordinating with all government agencies involved in municipal licensing to complete the automated integration with them, noting that municipal license applications are submitted through the "Baladi" website, or by submitting an application to the Coordination Office, which is being established and equipped to streamline procedures for issuing municipal licenses related to opening a business for any activity and to facilitate licensing procedures with the relevant government agencies, and which includes all relevant authorities.
Government Activity Licenses
As for activities supervised by government agencies, the regulations stipulate that the application must first be submitted to the agency supervising the activity to obtain preliminary approval for the license applicant, provided that the conditions prescribed by that agency’s regulations are met within a period not exceeding (10) working days, provided that the secretariat or municipality issues the municipal license after the supervising authority grants preliminary approval and all licensing conditions and requirements are met, while the competent authority issues the final license after obtaining a valid municipal license
License Renewal, Suspension, Amendment, and Revocation
The Ministry clarified that the license holder may renew, suspend, amend, or revoke the municipal license, provided that all required conditions are met; while a license may be amended at the request of the license holder, subject to the approval of the Civil Defense and the government agency overseeing the activity, provided that the requirements for the new activity are met and all municipal fees and fines are paid. The license holder is entitled to renew the license once all requirements for licensing have been met, A municipal license may also be suspended at the request of the license holder, provided that the suspension period does not exceed the term of the license, It may also be suspended if the license holder commits violations three (3) times and is warned to rectify the situation but fails to comply, or if municipal fees and fines remain unpaid after the license holder has been warned, or in the event of repeated violations of Civil Defense instructions and requirements forthree (3) times and the license holder has been officially warned by Civil Defense or Civil Defense has requested the closure of the establishment, the license shall be suspended and the establishment closed; or upon request by the government agency overseeing the activity.
Special Complaints Committees
The regulations stipulate the formation of committees to review grievances and complaints arising from the implementation of the system and its executive regulations, by decision of His Excellency the Minister of Municipal Affairs, in every Category (A) municipality and municipal secretariat, The regulations also authorize the Secretariat to submit a request to His Excellency the Minister to form committees in Category (B) municipalities whenever the need arises.
