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License for Establishing a Scientific and Technical Office in Saudi Arabia

Foreign companies that appoint a Saudi agent to distribute their products within the Kingdom often seek to establish a Scientific and Technical Office (STO). The primary purpose of this office is to support agents, distributors, and end users by providing technical assistance related to the products, as well as conducting product-related research and market surveys.

The STO may also prepare and submit market research reports to the parent company, offering valuable insights for strategic decision-making. It is important to note that while the Scientific and Technical Office is permitted to carry out liaison and support functions, including technical assistance, it is strictly prohibited from engaging in any direct commercial or revenue-generating activities within Saudi Arabia.

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Licensing Requirements for a Scientific and Technical Office in Saudi Arabia

Scientific and Technical Office

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    Scientific and Technical Office (STO) License in Saudi Arabia

    Facilitating Technical Support for Foreign Companies through Licensed Operations

    Foreign companies distributing their products through Saudi agents may establish a Scientific and Technical Office (STO) to provide dedicated scientific and technical support to their agents, distributors, and end users across the Kingdom.

    This license enables foreign companies to operate a non-commercial liaison office to deliver product-related technical services and market support.

    Regulations and Restrictions

    1. Market Feasibility: The STO must conduct market feasibility studies related to the company’s products and submit regular reports to the parent company.
    2. Annual Reporting: An annual activity report must be submitted to the Ministry of Investment (MISA).
    3. Commercial Activity Restriction: The office is strictly prohibited from engaging in any commercial activities, executing contracts, or making direct or indirect investments in Saudi Arabia.
    4. Training Fee Prohibition: Charging fees for training Saudi technicians is not permitted.

    Rules and Restrictions

    1. The scientific and technical office will be required to conduct market feasibility studies on the company’s activity and prepare reports for the main centre. An annual summary of its activities must be submitted to the Ministry of Investment.
    2. The office is prohibited from performing any contracts, commercial activities, or investments in the Kingdom directly or indirectly. It is also prohibited from charging fees for training Saudi technicians.

    Obtain Your Scientific and Technical Office License in Saudi Arabia with Al Taasis

    Al Taasis is a leading service provider in Saudi Arabia that can assist foreign companies and investors obtain a license for their scientific and technical office (STO) in the Kingdom. We offer services to streamline the licensing process, ensuring to meet all requirements and submit all necessary documents on time.

    Partner with Neotecniq Arabia

    At Neotecniq, we specialize in helping international companies navigate the licensing process for establishing a Scientific and Technical Office in Saudi Arabia. Our team ensures a smooth, compliant process—from documentation to final approval—so you can focus on supporting your partners and expanding your market reach.

    Contact us today to begin your STO license application with confidence and efficiency.