This is an extensive manual covering the ins and outs of how to register a foreign-owned company in Saudi Arabia without a sponsor, from initial eligibility checks to ongoing compliance requirements.
Foreign companies in Saudi can enjoy complete ownership of their shareholding without the need for a local sponsor.
In this article, we dissect the step-by-step procedures to register a 100% foreign-owned company in the Kingdom.
What You Need to Know About Company Registration in Saudi in 2025
For businesses who wish to register a company in Saudi without a sponsor, here’s a checklist of things to take note of:
- Select a Business Structure
Whether you’re a startup or an established organization, choosing the right business structure is a fundamental prerequisite for lawful compliance and operational effectiveness.
When you expand your business in Saudi Arabia, you will have various options for establishing your presence.
These are (but not limited to) subsidiaries of a foreign company—an option favored by the majority of businesses in Saudi Arabia—a limited liability company (LLC), a joint stock company, a regional headquarters (RHQ), and a technical and scientific services office (TSSO).
Book a free consultation call with AstroLabs’ dedicated team to ensure a seamless, hassle-free registration process
- Reserve a Company Name
The newly formed entity’s name must align with the Ministry of Commerce (MoC) guidelines and regulations.
Companies entering Saudi must have a name for their business in Saudi that’s pre-approved before continuing their journey; otherwise, a business can face delays or restrictions in the entire incorporation process, from commencing business activities.
Unlike in the past, companies can choose a non-Arabic name for their Saudi entities, as per the new commercial law amendments, which will soon go into full effect. Other changes include the ability of a company to reserve a trade name before registering it.
- Appoint a GM
In the framework of establishing a business in Singapore, companies must select the company official who will act as the general manager (GM) of the business in Saudi. This step serves as the backbone for ensuring effective governance.
Though the GM requires an Iqama, there is no requirement that they have to be physically present in Saudi Arabia for a specific period of time.
Understanding the Company Registration Process Without a Sponsor
There are three essential stages that comprise a successful company registration in Saudi Arabia.
Read on to learn everything there is to know about foreign company registration in Saudi in 2025.
First Stage: Establish a Legal Entity
The cornerstone of establishing your foreign-owned business is obtaining a MISA license. According to the new investment law, companies will be required to register with MISA’s portal instead of acquiring a license. These changes will take effect in 2025.
The next course of action is to secure a trade name and then register with the Ministry of Commerce (MoC) to obtain the CR as well as apply for the Chamber of Commerce’s membership.
Related read: How to Get Your Commercial Registration in Saudi: Step-By-Step Guide for 2025
Second Stage: Build the Team
After procuring a company seal, the next step is found to be getting the authorization to hire staff.
Further on, companies have to register with the Ministry of Labor (MoL), enrolling in the General Organization for Social Insurance (GOSI).
Other steps include reserving a national address, securing a visa for the GM, and registering with the General Authority of Zakat and Tax (GAZT) for tax compliance, including VAT.
Third Stage: Ensure Post-Incorporation Compliance
Coming to the third and final stage, completing the residency process (Iqama) for the GM is a non-negotiable aspect of the company registration process.
Tip: The general manager is required to sign the paperwork for Iqama in person in Saudi to complete the setup process.
Additional steps include activating the Chamber of Commerce account, obtaining health insurance, scheduling a medical checkup, securing the GM’s Iqama, and registering on various government portals (Muqeem, Absher, Qiwa, Mudad).
What’s Next After Registering a Company in Saudi?
Once the registration process is completed, a business is in a position to commence commercial activities in Saudi.
That said, there are post-company registration requirements you need to meet in order to ensure your company is compliant with local laws and policies.
For one, staying ahead of the timeline for the renewal process for essential documents is vital to avoid any disruptions in your operating status. Examples of these documents include the MISA license, CR certificate, and GM’s Iqama.
The renewal process should ideally begin a few months before the expiration date of each document.
Ensuring that businesses are on top of the post-incorporation considerations is at the core of AstroLabs’ wide range of services aimed at elevating businesses’ compliance readiness and continued business growth.
Besides renewal processes, other important areas of compliance include maintaining or increasing the Saudization (Nitaqat) quota as well as keeping governmental portals up to date.
Post-registration, AstroLabs offers a wide range of services to help you stay compliant with Saudi’s local regulations. Get in touch to learn more!
Registering a Foreign-Owned Company in Saudi Arabia Without a Sponsor – FAQs
- How much does it cost to open a company in Saudi?
The average cost of expenses covering the business setup during its first year of operation can be SR550,000 or $172,000.
- What are the considerations and documents you will need for company incorporation in Saudi?
If you are looking to incorporate a business in Saudi, you’ll need to get the following documents ready:
For Startups:
Commercial Registration (Attested by MOFA and the Saudi Embassy)
Memorandum of Association (MoA) & Articles of Association (Attested by MOFA and the Saudi Embassy)
A letter of intent, a startup brief, and a pitch deck
A support letter from a VC company or a licensed incubator
For Established Businesses:
Commercial Registration (Attested by MOFA and the Saudi Embassy)
Memorandum of Association (MoA) & Articles of Association (Attested by MOFA and the Saudi Embassy)
An Audited Financial Statement
- How many shareholders are required to set up a business in Saudi?
There must be at least 1 shareholder for the newly registered Saudi entity. A private limited company can have up to a maximum of 50 shareholders.
The company must convert to a joint stock corporation if it has more than 50 shareholders.
- How can I get a MISA license?
Here’s a quick outline of the process.
- Determine Your Business Structure
- Prepare Necessary Incorporation Documents
- Online Application Submission
- Register a Business Name:
- Draft Articles of Association (AoA)
Our team can help businesses accelerate the implementation of each step in the application process, mitigate common risks, and increase their chances of approval. Contact us to find out more about our incorporation services.