If you are a certified accountant and considering opening an accounting firm in Saudi Arabia, or a licensed accounting company, you need a license from the Saudi Organization for Chartered and Professional Accountants (SOCPA). This license is mandatory for any individual or entity providing accounting and auditing services in the Kingdom. In this article, we explain the types of licenses, required conditions, application steps, and frequently asked questions.

Why Do You Need an Accounting Firm License?

The accounting and auditing profession system in Saudi Arabia (issued by Royal Decree No. M/59) requires anyone practicing accounting and auditing to obtain a license from SOCPA. Without a license, you are not permitted to provide accounting, auditing, zakat, tax, or financial advisory services. The license ensures the quality of professional services and protects clients’ rights.

Types of Professional Licenses from SOCPA

The Saudi Organization for Chartered and Professional Accountants offers several types of licenses based on the scope of service:

  • License to Practice Accounting and Auditing: For conducting legal audits of financial statements.
  • License to Provide Zakat and Tax Accounting Services: Specialized in Zakat and Tax (ZATCA).
  • License to Provide Value-Added Tax Services: For tax consultations and declarations.
  • License to Provide Accounting Services: For general accounting services (bookkeeping, financial statements).
  • License to Provide Financial Advisory Services (Non-Securities): Financial advisory for companies and individuals.

Conditions for Obtaining an Accounting Firm License

To apply for a license to practice accounting and auditing, you must meet the following conditions according to the profession system:

  1. Saudi Nationality: The applicant must be a Saudi national.
  2. Full Legal Capacity: The applicant must have full legal capacity.
  3. Educational Qualification: Hold a university degree in accounting or a related field, or a higher qualification as specified by the regulations.
  4. Membership in SOCPA: Must be a full member of SOCPA.
  5. Professional Experience: At least one year of experience in accounting or auditing work.
  6. Passing Professional Exams: For chartered accountants, passing the Saudi Chartered Accountant Fellowship exams (SOCPA Fellowship) is required.

Steps to Apply for the License

The application process is fully electronic via the “Marsoos” platform, affiliated with SOCPA. Here are the steps:

  1. Log In: Access the SOCPA e-services platform at eservice.socpa.org.sa.
  2. Select Service: Choose “Issue a License to Practice Accounting and Auditing.”
  3. Fill in Data: Enter your personal and professional details and upload the required documents (qualification, experience certificate, membership).
  4. Pay Fees: Pay the license fees electronically.
  5. Processing: SOCPA reviews the application and issues a decision within a specified period.
  6. Receive License: After approval, the license is issued electronically and can be printed.

Services Available via the Marsoos Platform

The Marsoos platform offers integrated services for managing the license after obtaining it, including:

  • Renewing the license electronically.
  • Requesting temporary suspension or lifting suspension.
  • Permanently canceling the license.
  • Establishing a sole proprietorship or registering a professional company.
  • Updating the establishment and partner data.
  • Requesting to join or leave an existing professional establishment.

Fees and Duration

The fees for an accounting firm license vary depending on the type of license and membership category. It is advisable to check the SOCPA website for the latest fees. The license requires periodic renewal as specified by the organization.

Frequently Asked Questions

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Can non-Saudis obtain an accounting office license?

The Accounting and Auditing Profession System requires Saudi nationality for the basic license. However, foreign companies or foreign investors can work in the accounting sector through licensed professional firms in accordance with foreign investment regulations and in coordination with SOCPA.

How long does it take to process a license application?

The processing period depends on the completeness of the documents. Approval is usually issued within 15-30 working days from the submission of a complete application.

Do I need a commercial registration to open an accounting office?

Yes, after obtaining the professional license from SOCPA, you need to issue a commercial registration from the Ministry of Commerce with the activity “Accounting and Auditing Services” or the appropriate activity for your license.

What is the difference between a chartered accountant and an accounting office?

A chartered accountant is an individual licensed to practice the profession. An accounting office is an establishment (sole proprietorship or professional company) that includes licensed chartered accountants and provides services to clients.

Can a sole proprietorship be converted into a professional company?

Yes, SOCPA provides the service “Notice of Conversion of Sole Proprietorship to Professional Company” through the Mersal platform, allowing for business expansion and the addition of new partners.