Business registrations in Saudi Arabia saw a massive surge in 2025, surpassing 1.7 million by the third quarter of the same year. Understanding how to get a commercial registration in Saudi Arabia is paramount to maximizing the odds of having a sustainable, profitable market expansion.
This article is designed to take you through the whole process, from choosing the right structure to completing the necessary documentation. See below for the steps for your business registration in Saudi Arabia.
- Step 1: Choose Your Business Entity
- Step 2: Address Pre-Registration Requirements
- Step 3: Register with the Saudi Ministry of Commerce
- Step 4: Submit Articles of Association
- Step 5: Pay the Registration Fees
- Step 6: Collect the Commercial Registration Certificate
How to Complete Your Commercial Registration in Saudi Arabia
Obtaining a commercial registration certificate is an authorization for a company to start operating in the Saudi market according to the country’s regulatory frameworks.
Below is a breakdown of the company registration process in Saudi Arabia:
Step 1: Choose Your Business Entity
The first step in the business setup process in Saudi Arabia is to determine the business entity that best serves your needs and objectives.
There are several business entities to choose from in Saudi Arabia, including
- Subsidiary or LLC—the most common business form in Saudi Arabia
- Branch office
- Joint-stock company
- Regional headquarters (RHQ)
- Technical and scientific services office (TSSO)
Step 2: Address Pre-Registration Requirements
- MISA License
Foreign companies must first obtain a business license from the Ministry of Investment (MISA). The MISA license typically takes 5-7 working days.
- Name Reservation
Depending on the business structure, selecting a name that’s unique to your organization is a prerequisite to the business setup process in Saudi.
As per the updated Trade Names Law in Saudi, businesses are now allowed to use non-Arabic names, granting them more flexibility in name selection.
Step 3: Register with the Saudi Ministry of Commerce
After obtaining an MISA license and choosing a business name, companies must complete an online application form on the Ministry of Commerce portal.
This form requires essential company information, such as the trading name, structure, activities, and supporting documents like owner details, proof of capital, and the parent company’s commercial registration.
Step 4: Submit Articles of Association
Businesses have to submit their Articles of Association (AoA) as part of the registration process. The document clearly defines how the company is structured, owned, and managed.
Step 5: Pay the Registration Fees
After submitting the application, companies must pay registration fees.
Step 6: Collect the Commercial Registration Certificate
Upon successful completion of the review process, businesses will receive a notification of approval and then obtain the commercial registration certificate.
Besides helping companies acquire their commercial registration number, AstroLabs’ on-ground team manages the whole annual confirmation process on behalf of foreign businesses as part of its post-incorporation support toolkit.
What Comes After the Commercial Registration Process in Saudi Arabia?
Right after having the CR ready, companies then have to register with the Chamber of Commerce (CoC), marking the end of the first stage of the Saudi market expansion roadmap.
The second phase typically involves completing registrations with relevant ministries such as the Ministry of Labor, the General Organization for Social Insurance (GOSI), and the General Authority of Zakat and Tax (ZATCA) for tax compliance.
At this point, securing office space is mandatory to register a National Address and later to be able to confirm their commercial registration details.
In the soft landing phase, businesses ought to issue an Iqama for the general manager of the Saudi entity and register on important government portals such as Muqeem, Absher, Qiwa, and Mudad. As a final step, opening a bank account is crucial for the company to conduct a wide range of financial operations.
Backed by a decade of expertise in foreign company registrations in Saudi Arabia, AstroLabs’ on-ground team can provide a full gamut of services for its clients; these range from acquiring a Commercial Registration, opening a corporate bank account, and managing payroll and accounting.
Commercial Registration and Trade Name Laws: What has changed in 2025?
Saudi Arabia has recently enacted new legislation governing commercial registration and trade names to simplify business processes and appeal to international investors. This new CR framework is part of a broader initiative to enhance the Kingdom’s global business competitiveness and attract high-growth companies.
Key Aspects of the Commercial Registration and Trade Name Law:
- Unified CR System
The new law introduces a national commercial registration system, requiring only one national CR for all activities, including branches.
- Grace Period for Existing Companies
A five-year grace period allows existing companies to rectify inconsistencies in their branch CRs, enabling them to establish a new company or transfer branch activities to their main CR.
- Annual CR Confirmation
While the CR will no longer expire, companies must confirm their CR information annually. Failure to do so may result in suspension or cancellation.
- Alternative Penalty Measures
To foster a flexible business environment, the law introduces alternative penalties like warnings, rectification orders, and financial penalties.
- Bank Account Requirement
Companies must maintain bank accounts linked to their CR for secure, transparent transactions.
Key Elements of the New Tradename Law:
- Advance Tradename Reservation
The law permits the reservation of trade names for a specified period, with options for extension.
- Use of Non-Arabic Names
Trade names can include Arabic or non-Arabic names, as well as transliterations and combinations of letters and numbers.
- Independent Trade Name Ownership
Trade names can be independent assets that may be assigned to others.
- Arabic Language Enhancement
An Arabic Experts portal will promote authentic Arabic names in commerce.
- Protection of Reserved Tradenames
Unauthorized use of reserved trade names is prohibited.
- Unique Tradename Requirement
Trade names must be distinct and not resemble existing names, irrespective of business type.
The Annual CR Update Saudi Arabia: What Do You Need to Know?
Under the new Commercial Registration Law, effective April 2025, foreign companies in Saudi Arabia are no longer required to confirm their commercial registration (CR) annually. Instead, they must verify and update their CR details and pay the applicable fees. Failure to comply could lead to suspension or cancellation of the CR.
Overview of CR Annual Confirmation Process
- 1. Access the Ministry of Commerce online platform
- 2. Sign in with your Absher account details
- 3. Navigate to “Commercial Registration Services.”
- 4. Click on the “Annual Confirmation” option
- 5. Verify and modify your company information
- 6. Complete payment
What Are the Consequences of Failing to Confirm Your CR?
Under Saudi Arabia’s unified commercial registration system, businesses must complete annual confirmation; neglecting this requirement initiates the following sequence:
- 90 days after the due date: Your registration status changes to “Suspended.”
- 1 year after the due date: Your registration becomes “Canceled.”
- Companies can restore suspended registrations by providing the necessary documentation before cancellation occurs.
FAQs About Commercial Registration in Saudi Arabia
- How long does it take to complete a company registration in Saudi Arabia?
- The process usually takes anywhere from a few days to a few weeks, depending on the size of the company and the necessary documentation. With AstroLabs, the entire company registration can take up to three months, provided the required documents are submitted promptly.
- How much does it cost to register a company in Saudi Arabia?
- The initial registration fee is SAR 6,000, and the annual confirmation fee is SAR 1,200.
- What is a commercial registration in Saudi Arabia?
- Commercial registration is an essential part for anyone looking to expand into Saudi Arabia. The process ensures that businesses are compliant with Saudis commercial laws and provides legitimacy to the company formed in Saudi Arabia.
- How can I check my commercial registration in Saudi Arabia?
- You can access your company’s registered data using the website created by the Ministry of Commerce and Industry.
- What is the difference between a commercial license and a commercial register?
- A commercial license is an official permit issued by the government’s regulatory body, allowing the practice of commercial activity in the governing country. The commercial registry is usually stored and managed by the governmental agency in charge.
- How long does it take to obtain a business license in Saudi Arabia, and what is the process?
- The process of obtaining a business license and registering your company officially takes around two to four weeks. The full process, including visas and bank accounts, will take up to three months.
- How are taxes applied to foreign-owned companies in Saudi Arabia?
- Foreign-owned companies in Saudi Arabia are subject to the following taxes:
- 20% corporate tax on net profits.
- 15% Value Added Tax (VAT).
- 5-20% withholding tax, depending on the nature of the transaction.