There are several Saudi government entities and authorities that are responsible for issuing necessary licenses and sector-specific permits determining how companies can legally operate in the Kingdom.
For any foreign or local business, understanding the roles and functions of these institutions is essential to navigating the regulatory landscape, ensuring compliance, and securing smooth business continuity.
Saudi Government Entities and Their Functions
Understanding the key government bodies in Saudi Arabia is crucial to navigating the regulatory landscape and achieving complete legal compliance and smooth business continuity.
Ministry of Investment of Saudi Arabia (MISA)
MISA is responsible for issuing licenses that enable foreign entities to legally operate in the Kingdom.
Why it matters to your business
Securing a license is the first crucial step in entering the Saudi market, providing the foundational approvals necessary for business setup in the Kingdom
Ministry of Commerce (MoC)
The Ministry of Commerce handles critical business setup requirements that form the backbone of your legal presence in Saudi Arabia.
Why it matters to your business
All businesses in Saudi are required to undertake several tasks through the MoC, like submitting the company’s Articles of Association, reserving a trade name, and issuing the Commercial Registration (CR).
Saudi Business Center (SBC)
The Saudi Business Council (SBC) provides single-window access to all major ministries, providing a one-stop shop for several business services. It has so far delivered more than 10,000 services.
Why it matters to your business
It allows companies to streamline their processes without visiting multiple physical branches. For example, the SBC allows businesses to submit a request through its portal to make changes to the company’s AoA.
Chamber of Commerce
A non-governmental organization that aims at promoting commercial activities in Saudi by providing essential business services.
Why it matters to your business
The CoC offers the following services:
- Document verification
- Permits for commercial activities
- Certificates of origin for international trade
- Subscription letters to support your business operations
Ministry of Human Resources and Social Development
The HRSD is responsible for shaping the labor regulations and workers in the public and private sectors in the Kingdom of Saudi Arabia. Companies setting up a business in Saudi Arabia must have their HRSD accounts activated and continuously updated.
Why it matters to your business
Through HRSD, companies can do these crucial tasks:
- Managing workforce-related processes
- Issuing General Manager (GM) visas to facilitate hiring procedures
- Obtaining a Saudization certificate
Zakat, Tax, and Customs Authority
This authority manages crucial tax compliance matters. Businesses in Saudi are subject to several types of taxes, including Corporate tax (20%), VAT (currently at 15%), Zakat, and excise income. But, this depends on the company’s entity type and activities.
Why it matters to your business
- Issuance of Zakat compliance certificates
- VAT compliance certificates
General Organization for Social Insurance (GOSI)
GOSI is an independent governmental entity that provides social protection and insurance coverage, managing mandatory contributions for both Saudi nationals and expatriate employees working in the private sector.
Why it matters to your business
To successfully bid on governmental projects, companies have to secure and maintain issuance of the GOSI certificate. This document serves as proof that a company is paying the required social contributions to its employees in alignment with Saudi labor laws.
Ministry of Foreign Affairs
The Ministry of Foreign Affairs (MOFA) is essential for facilitating legal entry, visa procurement, and document legalization.
Why it matters to your business
MOFA works to facilitate business operations by issuing e-delegations to authorized travel agencies for GM visa facilitation, enabling General Managers to enter Saudi and complete business setup processes efficiently.
Should you have missed that guide, check it out here: Starting a Business in Saudi Arabia as a Foreigner: Understanding the 3-Stage roadmap
Vital Saudi Entities for Your Company’s Operations
Once it is incorporated, a foreign company becomes subject to other licensing from relevant sector-specific regulatory bodies, depending on the nature and extent of operations.
To simplify, here is a consolidated checklist of common authorities responsible for issuing permits across financial services, IT, entertainment, logistics and transportation sectors.
Financial Services
Capital Market Authority (CMA)
The CMA oversees capital market regulations, providing necessary approvals for businesses engaged in regulated financial activities.
Construction and Infrastructure
Saudi Contracting Authority
This specialized authority helps construction companies navigate the licensing landscape by:
- Issuing necessary licenses and permits
- Providing required accreditations
Technology
Ministry of Communications and Information Technology
This ministry lays a robust digital foundation for businesses operating in the technology sector, actively promoting job creation and entrepreneurship in tech. It oversees the regulatory framework for IT companies and digital service providers.
Center of Digital Entrepreneurship
Specifically designed to support innovation, this center offers a comprehensive suite of resources for early-stage companies, including:
- Mentorship programs
- Funding opportunities
- A collaborative community environment to foster innovation and growth
Entertainment
General Entertainment Authority (GEA)
The GEA streamlines the licensing and permitting processes for entertainment companies while actively managing and participating in Saudi Arabia’s major cultural and entertainment events.
Transportation and Logistics
Transport General Authority (TGA)
The TGA regulates multiple transportation modes, including rail, marine, and land transport throughout Saudi Arabia. Key functions include:
- Ensuring safety compliance across all transport modes
- Managing efficient permitting processes
Post-Incorporation Essentials You Shouldn’t Ignore
Saudi-incorporated companies and registered branches are subject to several compliance obligations. Missing a deadline or overlooking a regulation can result in penalties and cause significant disruptions to your operations.
The following is an overview of the main compliance requirements that foreign companies should take note of.
- Every Company Should Meet their Saudization Quota
Every foreign company must meet its pre-defined Saudization quota based on its size and the sector in which it is setting up. Non-compliance puts the company at risk of falling in the “Red Zone” category, preventing it from obtaining its Saudization certificate. The latter is a mandatory prerequisite to partaking in government bids.
- Every Company Has to Have its Governmental Portals Updated
Maintaining updated governmental portals is necessary for businesses to operate smoothly and perform essential tasks, such as issuing work visas for employees.
The interconnected nature of these portals makes it easy for a single mistake to cascade into a chain reaction that can negatively impact various facets of a company’s operations.
- Every Company Should Keep Up with Tax Regulations
To stay compliant, businesses must ensure that they file their tax returns accurately and on time and maintain accurate and complete records of their transactions.
Tax evasion, which can occur through late tax filings and submission of false documents, results in serious fiscal penalties. Read more here:Business Taxes in Saudi Arabia 2025: VAT, Corporate Income Tax, Zakat & More
- Every Company Should Renew Business Licenses on Time
Maintaining a proactive approach to business renewal processes for documents such as the GM’s Iqama, CR, and MISA license helps the company ensure uninterrupted operations.
On the contrary, poor renewal management results in significant operational interruptions and compliance issues affecting both the company and its employees.
AstroLabs can assist in fulfilling all of your setup and post-incorporation compliance requirements through its comprehensive corporate support services to help you successfully expand and scale your business in Saudi.