Read through this ultimate guide to find out the details of registering a foreign company in Saudi Arabia
Saudi Arabia forms an ideal base for expanding a business overseas as it promotes investment to flow through robust policy reforms that facilitate the ease of doing business. As many as 800 legal forms were introduced over the past few years. Such efforts helped propel Saudi Arabia to rank 16th globally on the IMD World Competitiveness Index.
Whether you’re an entrepreneur or an international business looking to establish a presence in Saudi Arabia, this article will equip you with the essential knowledge to navigate the process of registering a 100% foreign-owned business in the Kingdom.
In this guide, we cover the following steps for registering a foreign company in Saudi Arabia 2025:
- Understanding the Foreign Company Registration Process in Saudi Arabia
- Post-Registration Procedures and Compliance in Saudi Arabia For Foreign Businesses
- FAQs About Foreign Company Registration in Saudi Arabia
Understanding the Foreign Company Registration Process in Saudi Arabia
Starting the process right allows you to have a physical presence in the country and set a foundation for your business growth.
It is crucial to exercise due diligence to ensure the proper registration of a foreign company in Saudi. Errors in the registration process or noncompliance with one of the legal requirements can result in operational and financial setbacks due to fines.
Here is an extensive manual to assist you with legal requirements and essential steps you need to be aware of before doing business in Saudi Arabia.
Preparing Necessary Documents to Register Company in Saudi
Once you select the business form suitable for your organization’s needs, the next step of action is to prepare the incorporation documents; these include:
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
Here’s how to Register a Foreign Company in Saudi
After collecting the necessary documents, businesses can proceed to register a business in Saudi; the process is divided into three phases for the sake of simplicity.
Here is a breakdown of each market expansion stage.
Phase one: Legal Entity Establishment (Projected timeline: 1 month)
- Obtain a MISA Investor License
- Select Name Reservation
- Draft Local Articles of Association (AoA) – the document is established by the law and companies can only adjust their general manager’s powers.
- Secure Commercial Registration (CR)
- Obtain the Chamber of Commerce (CoC) Registration
Phase two: Authorization and Hiring (Projected Timeline: 2 months)
- Obtain a company seal
- Register with the Ministry of Labor
- Register with the General Organization for Social Issuance (GOSI).
- Register a National Address
- Issue a GM Visa
- Registration with the General Authority of Zakat and Tax (GAZT) and VAT Registration
Phase three: Residency and Banking (Projected timeline: 3 months)
- Activate the Chamber of Commerce (CoC) account.
- Obtain Health Insurance
- Get a Medical Check-up
- Issuing the GM’s Iqama
- Register with the Muqeem portal for streamlined visa and residency management.
- Register with the Absher portal for an array of e-government services.
- Register with the Qiwa portal for business services designed for SMEs.
- Register with the Mudad Portal to manage essential municipal services for your company.
- Open a bank account
Post-Registration Procedures and Compliance in Saudi Arabia
After successful company registration, your business must meet compliance requirements across various areas.
These range from opening a corporate bank account, adhering to the Saudization quota, and managing updated corporate accounts on key governmental portals. In addition, the business is responsible for renewing key documents such as the MISA license, commercial registration (CR), and the general manager’s (GM) Iqama.
Requirements for Opening a Corporate Bank Account in Saudi
Establishing a corporate bank account is a necessary step and compliance area for your newly formed company in Saudi.
Documents Required to Open a Bank Account for Saudi Entities:
- MISA license
- Saudi entity’s Commercial Registration (CR)
- Proof of national address
- General manager’s Iqama permit (for non-Saudis)
- ID cards (for Saudis and GCC nationals)
- Memorandum and Articles of Association (with GM’s banking powers)
- VAT certificate
- SIM cards linked to Saudi IDs for authorized signatories
Documents Required to Open a Bank Account for a Parent Company:
- Attested Parent Memorandum and Articles of Association
- Attested Active Parent Commercial License
- Ownership structure chart (including names, passport numbers, nationalities, and ownership percentages)
- Parent shareholders’ IDs
FAQs About Foreign Company Registration in Saudi Arabia
- What are the types of business entities in Saudi Arabia?
There are various types of business structures that foreign companies can choose from; they are, but not limited to, the following: a limited liability company (LLC), a joint stock company, a regional headquarters (RHQ), and a technical and scientific services office (TSSO).
Among these, a subsidiary is the preferred choice for businesses expanding to Saudi due to its advantages in liability protection and ownership structure that promises more flexibility in business activities.
- Do I need a MISA license to operate in Saudi Arabia?
Acquiring an MISA license is the first step in doing business in the Kingdom. The process to obtain one typically takes 5-7 working days. However, businesses might need only to register with the MISA’s online portal instead of acquiring the investment license, as per the new investment law, expected to take effect in 2025.
- Can a foreigner be a general manager of a company in Saudi Arabia?
One of the key requirements to register a foreign company is that you must also have at least one general manager who is a locally resident individual in Saudi Arabia.
- How long does it take to register a company in Saudi Arabia?
Once all the documents are ready, it usually takes six months to register a business in Saudi, depending on the company’s structure and complexity, as well as the required documentation.