After Fal License: Freelance Certificate or Commercial Registration? Your Complete Guide to Choosing the Right Path as a Real Estate Marketer
A comprehensive detailed guide comparing freelance work certificate and commercial registration for Saudi real estate marketers. Learn about costs, requirements, advantages and disadvantages, and how to choose the best path after obtaining your Fal license from the Real Estate General Authority.
Introduction: The Critical Decision Moment
Congratulations! You've completed the three courses from the Saudi Real Estate Institute, met the Real Estate General Authority requirements, and now hold a Fal license for real estate brokerage and marketing. But wait, the journey hasn't ended - it's just beginning. You now face an important decision that will shape your career path in real estate: Do you choose a freelance work certificate from the Ministry of Human Resources and work with freedom and flexibility? Or do you open a real estate establishment with a commercial registration from the Ministry of Commerce and build an institutional entity?
This decision is not simple, as each path has its advantages and challenges, and every person has different circumstances and goals. In this comprehensive guide, we'll provide you with all the information you need to make the right decision with confidence and clarity.
Chapter One: Understanding the Two Available Options
Before diving into details and comparisons, let's first understand what each option available to the real estate marketer after obtaining a Fal license means.
Option One: Freelance Work Certificate
The freelance work certificate is an official document issued by the Ministry of Human Resources and Social Development through the electronic freelance portal. This certificate allows Saudi citizens to practice their professional activity independently without the need to open a commercial establishment or rent an office. After the agreement between the Real Estate General Authority and the Ministry of Human Resources, real estate services became one of the categories included in the freelance program, meaning that a real estate marketer holding a Fal license can obtain a freelance work certificate and practice their activity legally.
Option Two: Commercial Registration (Real Estate Establishment)
Commercial registration is the official document issued by the Ministry of Commerce that allows a person to establish an official commercial establishment. For real estate marketers, this means opening a real estate office or a registered brokerage company with official authorities, with all the resulting requirements, responsibilities, and opportunities.
Chapter Two: Freelance Work Certificate in Detail
Requirements for Obtaining Freelance Work Certificate
To obtain a freelance work certificate, the following requirements must be met: The applicant must be a Saudi national, aged 18 Hijri years or older and not exceeding 60 years, have an activated Absher account, and hold a qualification certificate from the Saudi Real Estate Institute for real estate activities. The great thing is that government or private sector employees can obtain this certificate and work with it as an additional source of income.
Financial Costs
One of the most prominent advantages of the freelance work certificate is that it's completely free! There are no fees for issuance or renewal. The certificate validity is one year and can be renewed for free through the electronic portal. A person can obtain up to 5 certificates for 5 different professions if they possess the required skills.
Main Advantages
The freelance work certificate offers several important advantages for real estate marketers. First, the ability to open a commercial bank account linked to the certificate to receive payments and commissions. Second, optional registration in social insurance to secure your future. Third, the ability to benefit from freelance financing from the Social Development Bank up to 120,000 SAR. Fourth, using various digital payment channels. Fifth, contracting with government and private entities using the certificate as an official document. Sixth, benefiting from support programs offered by the Human Resources Fund.
Limitations and Challenges
Despite the many advantages, there are some limitations to know. The freelance work certificate doesn't allow you to open an office or shop on the ground - it's designed for independent individual work. It also doesn't allow you to employ workers or build a work team. Additionally, some clients or entities may prefer dealing with establishments that have commercial registration. It's important to note that the Fal license alone isn't sufficient to open a bank account, but the freelance work certificate solves this problem.
Steps to Obtain Freelance Work Certificate for Real Estate Marketer
To obtain the certificate, follow these steps: First, access the freelance portal via freelance.sa. Second, create a new account or log in via National Access. Third, select the real estate services category from the available categories. Fourth, attach proof of obtaining the qualification certificate from the Real Estate Institute. Fifth, complete the required data and submit the application. Sixth, the certificate will be issued electronically shortly.
Chapter Three: Commercial Registration and Real Estate Establishment in Detail
Requirements for Opening a Real Estate Establishment
To open a real estate establishment with commercial registration, several conditions must be met: The applicant must be a Saudi national aged 18 years or older, hold a Fal license from the Real Estate General Authority, have a premises for the establishment with a lease contract or ownership deed, obtain a national address for the premises, and not have another commercial registration with the same activity for individual establishments.
Detailed Financial Costs
Costs for opening a real estate establishment include several items: Main commercial registration fees of 200 SAR annually, Chamber of Commerce fees varying by activity type and grade usually starting from 500 SAR annually, and Fal license fees for establishments at 1,000 SAR annually instead of 300 SAR for individuals. Operational costs include: Office rent ranging from 15,000 to 50,000 SAR annually depending on location and size, office equipment and furniture estimated at 10,000 to 30,000 SAR, employee salaries if any, electricity, water, and internet bills, and commercial lease contract fees through the Ejar platform at 200 SAR annually. Total estimated startup cost ranges from 50,000 to 100,000 SAR in the first year.
Main Advantages
A real estate establishment offers advantages not available in freelance work. First, the ability to expand, employ a work team, and build a brand. Second, high credibility with clients and official authorities. Third, the possibility of opening multiple branches with sub-registrations. Fourth, eligibility for larger financing from banks and funding entities. Fifth, the ability to participate in large tenders and government contracts. Sixth, building commercial assets that can be sold or inherited in the future.
Challenges and Responsibilities
With advantages come greater responsibilities. Fixed monthly costs from rent, salaries, and bills create constant financial pressure. Tax and zakat obligations have become mandatory for establishments. Localization requirements impose certain Saudization percentages. Supervision and inspection from competent authorities require constant compliance with regulations. Legal responsibility is greater in case of any violations or disputes.
Steps to Open a Real Estate Establishment
To open a real estate establishment, follow these steps: First, ensure you have obtained an individual Fal license first. Second, prepare the establishment premises and obtain a certified lease contract or ownership deed. Third, register the national address for the premises. Fourth, access the Saudi Business Center platform and create the commercial registration. Fifth, subscribe to the Chamber of Commerce. Sixth, obtain a Fal license for the establishment from the Real Estate General Authority. Seventh, open a commercial bank account for the establishment. Eighth, register for VAT if your revenues exceed the required threshold.
Chapter Four: Comprehensive Comparison Table
The following table summarizes the most important differences between the two options to help you make a decision:
| Comparison Element | Freelance Work Certificate | Commercial Registration (Establishment) |
|---|---|---|
| Issuing Authority | Ministry of Human Resources | Ministry of Commerce |
| Issuance Cost | Free | 200 SAR + Chamber fees |
| Fal License Fees | 300 SAR annually (for individuals) | 1,000 SAR annually (for establishments) |
| Need for Premises/Office | Not required | Mandatory |
| Annual Rent Costs | Zero | 15,000 - 50,000 SAR |
| Employing Workers | Not available | Available |
| Opening Branches | Not available | Available |
| Commercial Bank Account | Available with certificate | Available with registration |
| Social Insurance | Optional (18% of bracket) | Mandatory for employees |
| VAT | Based on revenue volume | Mandatory when exceeding threshold |
| Development Bank Financing | Up to 120,000 SAR | Larger financing available |
| For Government Employees | Available (considering employer regulations) | Usually requires employer approval |
| Work Flexibility | Very high | Limited by premises and hours |
| Building a Brand | Limited | Fully available |
| Future Expansion | Limited | Unlimited |
| Client Credibility | Good | Very high |
| Total First Year Cost | About 2,500 SAR (courses + Fal license) | 50,000 - 100,000 SAR |
Chapter Five: Who Does Each Option Suit?
Freelance Work Certificate Suits You If:
The freelance work certificate is the optimal choice in several cases. If you're a beginner in real estate and want to test the market before major investment. Or if you're a government or private sector employee looking for additional income. Or if your available capital is limited initially. Or if you prefer working flexibly from anywhere without being tied to an office. Or if you want to try the field before deciding to expand. Or if your network is limited and you need to build it gradually.
Commercial Registration (Establishment) Suits You If:
Opening a real estate establishment with commercial registration is the better choice in other cases. If you have previous experience in real estate and a strong network. Or if you have sufficient capital to cover setup and operating costs. Or if your vision is to build a brand and large real estate company. Or if you want to employ a work team and expand. Or if your target clients are companies or government entities that prefer dealing with establishments. Or if you plan to obtain large bank financing.
Smart Strategy: Start Then Progress
Many successful real estate marketers followed a smart strategy: Starting with a freelance work certificate to gain experience and build a client base, then transitioning to opening a real estate establishment when the workload becomes large and requires a team and official premises. This approach reduces financial risks initially and allows you to learn and grow safely.
Chapter Six: Important Points to Consider
Fal License is Essential in Both Paths
Whether you choose freelance work or opening an establishment, the Fal license from the Real Estate General Authority is mandatory for practicing any real estate activity. You cannot work as a marketer or real estate broker without it. Remember the required courses are: Real Estate Brokerage course at 400 SAR, Real Estate Marketing course at 700 SAR, and Electronic Real Estate Marketing course at 750 SAR. Total course cost is about 1,850 SAR, plus license fees of 300 SAR for individuals.
Difference Between Fal License and Freelance Work Certificate
There's a common confusion that needs clarification: The Fal license is not a freelance work certificate and doesn't replace it! The Fal license authorizes you to practice real estate activity from a professional and regulatory standpoint. The freelance work certificate is the legal and commercial framework through which you work. Therefore, you need both together if you choose the freelance path: Fal license for professional practice, and freelance work certificate for the commercial framework and opening a bank account.
Government and Private Employee Obligations
If you're an employee, remember that some employers prohibit their employees from practicing any other work except with written approval. The Real Estate General Authority doesn't prevent employees from obtaining a Fal license, but the responsibility falls on you to verify your employer's regulations. The freelance work certificate is available to government and military employees, but make sure there's no conflict with your organization's regulations.
Chapter Seven: Raghdan Platform's Role in Supporting Real Estate Marketers
Whether you choose freelance work or opening an establishment, you need a trusted platform to help you succeed in your real estate career. This is where Raghdan Real Estate Services platform comes in, providing an integrated work environment for over 15,000 licensed real estate agents in the Kingdom.
Raghdan platform provides you with the ability to list properties and reach thousands of potential clients, advanced marketing tools that help you close deals, integration with Real Estate General Authority systems to ensure regulatory compliance, technical and professional support to help you on your real estate journey, and a wide network of marketers and owners for collaboration and coordination.
The platform supports both models: whether you're an independent marketer with a freelance work certificate or a real estate establishment owner, you'll find the tools and support you need to succeed at Raghdan.
Conclusion: The Decision is Yours
Ultimately, there's no absolutely right or wrong choice. The best choice is the one that suits your current circumstances, future goals, and financial capabilities. The freelance work certificate is an excellent option for starting with minimal costs and maximum flexibility, while commercial registration and a real estate establishment is the optimal choice for those who want to build a large institutional entity and established brand.
The wisdom lies in starting with what suits you now, while preparing to evolve and expand when the right time comes. What's important is to start, as every journey begins with a step, and the Saudi real estate market is full of opportunities for those who pursue them with dedication and professionalism.
We wish you success in your real estate career, and we look forward to seeing you soon among the elite professional real estate marketers on the Raghdan platform!