Business Setup - KSA
Business Setup in Saudi Arabia | 100% Foreign Company Formation
Your gateway to the Kingdom's booming economy. We simplify company setup in Saudi Arabia, from MISA licensing to post-incorporation compliance.
Requirements for Expanding Your Business to Saudi Arabia
To expand your business into Saudi Arabia, regulatory requirements vary based on your company’s maturity and operating history. Established companies are typically required to submit audited financial statements and evidence of existing operations, while startups must demonstrate innovation, scalability, and a well-defined business plan aligned with Saudi market objectives.
Established Companies
- Legalized Trade License from home country
- Legalized Board Resolution for Saudi expansion
- Legalized Articles of Association (AoA)
- Audited Financial Statements (last fiscal year)
Startups / Entrepreneur License
- Endorsement Letter from a VC or licensed incubator
- Pitch Deck & Business Plan summary
- Founder(s) Passport Copies
How to Start Business in Saudi Arabia?
Starting a business in Saudi Arabia has become significantly more streamlined following recent investor-friendly reforms. The process typically involves selecting the appropriate legal structure, obtaining the required licenses from MISA or the relevant Special Economic Zone (SEZ), registering for taxes with ZATCA, opening a corporate bank account, and arranging initial funding. Businesses must also complete office setup and workforce hiring in compliance with Saudi labor and Saudization regulations to ensure a smooth launch and successful entry into the Kingdom’s rapidly growing market.
Planning & MISA Licensing
Investment License Timeline: 2–4 weeks
• Application for MISA (formerly SAGIA) Investment License
• Business activity review and regulatory approval
Company Registration
Commercial Registration Timeline: 3–7 working days
• Issuance of Commercial Registration (CR)
• Approval from the Ministry of Commerce
Legal Documentation & Notarization
AoA Notarization Timeline: 2–5 working days
• Preparation of statutory and incorporation documents
• Finalization of shareholder agreements
Post-Incorporation Setup
Chamber & Address Timeline: 2–3 working days
• National Address registration
• Municipality licensing (where applicable)
Labor & Tax Compliance
Compliance Registrations Timeline: 3–7 working days
• GOSI registration for social insurance
• ZATCA registration for VAT and corporate tax compliance
Corporate Bank Account
2–6 weeks
Timeline varies by bank and shareholder profile. We assist with all major Saudi banks.
Visa Processing
2–4 weeks
Investor / GM Work Visa issuance within 2–4 weeks after company registration.
Iqama Processing
7–14 days
Residency permit issuance within 7–14 days after entry into Saudi Arabia.
Overall Estimated Timeline
For company incorporation
Including bank account and visa processing
Timelines may vary based on business activity complexity and document readiness
How to Choose the Best Legal Structure in Saudi Arabia
Selecting the appropriate legal structure is a critical first step when setting up a company in Saudi Arabia, as it directly impacts ownership rights, tax liabilities, and ongoing compliance. The chosen structure should align with your business objectives, desired level of control, investment horizon, and risk appetite. Making the right decision early facilitates smoother licensing with MISA, more efficient operations, and long-term scalability within Saudi Arabia’s evolving regulatory framework.
Limited Liability Company (LLC)
A Limited Liability Company (LLC) is the most widely used business structure in Saudi Arabia. It offers limited liability protection, safeguarding shareholders’ personal assets while allowing flexible management and operational control.
Branch of a Foreign Company
A branch structure enables a foreign company to operate directly in Saudi Arabia without incorporating a separate legal entity. The parent company remains fully responsible for the branch’s obligations and activities in the Kingdom.
Joint Stock Company (JSC)
A Joint Stock Company (JSC) is owned by shareholders, with ownership divided into tradable shares. This structure is commonly used for large enterprises and businesses planning capital raising or public listing.
Regional Headquarters (RHQ)
A Regional Headquarters (RHQ) serves as a centralized base in Saudi Arabia for managing and supporting a multinational company’s regional operations, in line with Saudi Arabia’s RHQ program and incentive framework.
Technical or Scientific Offices
Technical or Scientific Offices are established to provide technical support, research, and advisory services. These entities are not permitted to conduct commercial sales activities within Saudi Arabia.
Compliance Support Services
Compliance support services assist businesses in meeting tax, labor, regulatory, and legal obligations in Saudi Arabia, ensuring ongoing adherence to requirements set by ZATCA, MISA, and labor authorities.
Key Regulatory Authorities & Compliance in Saudi Arabia
Ministry of Investment of Saudi Arabia (MISA)
MISA facilitates both foreign and local investment in Saudi Arabia by issuing investment licenses, approving business activities, and supporting companies throughout the establishment process under a transparent regulatory framework.
Ministry of Commerce
The Ministry of Commerce is responsible for business registration and commercial regulation in Saudi Arabia. It oversees the issuance of Commercial Registration (CR), protects consumer rights, and ensures fair and compliant market practices.
Zakat, Tax and Customs Authority (ZATCA)
ZATCA administers zakat, corporate income tax, VAT, and customs duties in Saudi Arabia. It ensures businesses meet their tax filing, reporting, and payment obligations in a timely and compliant manner.
Saudization (Nitaqat Program)
Saudization, implemented through the Nitaqat program, requires companies to employ a specified percentage of Saudi nationals based on their industry and company size. Compliance is mandatory and directly impacts visa eligibility, workforce planning, and operational continuity.
Why Invest in Saudi Arabia Now?
Saudi Arabia is rapidly emerging as one of the world’s most attractive investment destinations, driven by Vision 2030, large-scale economic diversification, and sustained pro-business regulatory reforms. The Kingdom is actively encouraging foreign investment across high-growth sectors including manufacturing, logistics, technology, healthcare, and professional services, supported by government incentives, strategic infrastructure, and a stable regulatory environment.
Vision 2030
Saudi Arabia’s Vision 2030 is reshaping the Kingdom into a global hub for business, innovation, and investment. The government is making significant investments in infrastructure, digital transformation, industrial zones, and giga-projects such as NEOM, the Red Sea Project, and Qiddiya, creating long-term opportunities for international companies across multiple sectors.
Strategic Location
Saudi Arabia connects Asia, Europe, and Africa, making it a powerful logistics and trade gateway. With access to major shipping routes, modern ports, and expanding free zones, companies can efficiently serve regional and global markets.
Business-Friendly Reforms
Saudi Arabia now allows 100% foreign ownership in most sectors, simplified company registration, reduced licensing timelines, competitive tax structures, and strong investor protection. Regulatory bodies like MISA and the Ministry of Commerce actively support foreign investors.
Quality of Life
The Kingdom offers a high standard of living with modern urban infrastructure, world-class healthcare, international schools, and an increasingly diverse lifestyle environment. These advancements make it easier for businesses to attract global talent, relocate senior leadership, and establish long-term operations in Saudi Arabia.
Frequently Asked Questions About Business Setup in Saudi Arabia for Foreign Companies
Do I need a Saudi partner for an LLC?
No, in most sectors you can have 100% foreign ownership without a Saudi partner.
What is the minimum capital requirement?
Minimum capital requirements vary by activity. We can advise based on your proposed business activity.
How long does the process take?
2–4 weeks (Subject to business activity approval and document legalization)
3–7 working days (After MISA license approval and name reservation)
• 4 to 8 weeks for company incorporation
• 6 to 10 weeks including bank account and visa processing
Do I need a physical office?
Yes, a physical office or a licensed co-working space is mandatory for business setup in Saudi Arabia.
Ready to Start Your Journey in the Kingdom?
Speak to our experts for a personalized roadmap.