Incorporating a Foreign-Owned Company in Saudi Arabia 2025 Edition

Saudi Arabia Is Open — and Actively Courting Foreign Investors

As Vision 2030 accelerates, Saudi Arabia has made one thing clear: foreign capital, expertise, and innovation — especially from those establishing a foreign-owned company — are not just welcome, they are essential.

The Ministry of Investment (MISA) has streamlined the process for foreign investors to set up businesses in the Kingdom across sectors ranging from real estate and retail to tech, tourism, energy, and logistics. Today, companies can own 100% of their Saudi entity, with no local partner required — provided they meet key legal, financial, and operational standards.

NH Management supports international companies and entrepreneurs through the entire setup process, from entity structuring to licensing, tax registration, and regulatory clearance.

Step-by-Step Process to Register a Foreign-owned Company in Saudi Arabia

1. Secure MISA Investment License

Your first step to registering a foreign-owned company is to apply for a license from the Ministry of Investment of Saudi Arabia (MISA).

Requirements include:

• Business plan (with capital investment details)

• Corporate documents from parent company (for branch/holdco structures)

• Notarized and legalized incorporation certificates

• Shareholder passport copies

• Financial statements (last year’s audited accounts, if applicable)

Licenses are typically valid for 5 years, renewable, and sector-specific.

NH Insight: Structuring this correctly is critical — especially if you’re planning a regional HQ, joint venture, or holding entity.

2. Reserve Company Name and Draft Articles

After MISA issues approval:

• Reserve your commercial name with the Ministry of Commerce (MoC)

• Draft and notarize the Articles of Association (AoA)

• Register with the Saudi Commercial Registry (CR)

Depending on the activity, your foreign-owned company may be registered as:

• LLC (Limited Liability Company) – most common for commercial businesses

• Branch of a foreign company – same legal identity as parent

• Regional HQ (RHQ) – special privileges under Vision 2030

3. Register with ZATCA for Tax and Zakat

All companies operating in KSA must register with the Zakat, Tax and Customs Authority (ZATCA) and obtain a TIN (Tax Identification Number).

Tax Notes:

• Zakat applies to Saudi/GCC shareholders (2.5% on capital and retained earnings)

• Corporate Income Tax applies to foreign ownership (20%)

• 15% VAT applies on most goods and services (monthly or quarterly filings)

NH Management coordinates all tax registrations and filing timelines with ZATCA, and ensures clear compliance between shareholder breakdowns and tax liabilities.

4. Open Corporate Bank Account

Once your CR and tax numbers are in hand, you can open a bank account in Saudi Arabia.

Requirements:

• Commercial Registration

• MISA license

• Tax certificate

• Office lease

• National Address registration

• Proof of shareholder identity

NH Management works directly with Saudi banks to reduce onboarding delays and coordinate document submissions in Arabic.

5. Lease Physical Office and Register Address

Most licenses require proof of a physical presence in Saudi Arabia, particularly for RHQ and regulatory sectors (e.g., fintech, education, logistics). This includes:

• Ejari-style tenancy agreement

• Registration with the Saudi National Address system

6. Register with GOSI and Issue Work Visas

If you plan to hire staff:

• Register with GOSI (General Organization for Social Insurance)

• Subscribe to the Qiwa platform for labor contracts

• Enroll in Mudad for payroll compliance

• Begin the visa issuance process via the Ministry of Human Resources (MLSD)

Saudi’s Nitaqat system requires minimum quotas for Saudi employees, depending on your company’s size and sector.

Key Timelines

Total setup time: 4–8 weeks (depending on activity and shareholder structure)

Sectors with Additional Regulatory Approvals

NH Management manages layered licensing and sectoral approvals for clients in:

• Real Estate Development (REGA license)

• Fintech & Payments (SAMA sandbox + Central Bank licensing)

• Tourism and Hospitality (Ministry of Tourism certification)

• Education and Training (TVTC & MoE licensing)

• Media and Production (Ministry of Culture and General Commission for Audiovisual Media)

Final Thought: Structure Today for Growth Tomorrow

Saudi Arabia has removed the guesswork. The process is clear, and the opportunities are real. But structuring your foreign-owned company correctly — from the very first filing — is critical for long-term success, especially with tax, visa, and regulatory compliance on the line.

NH Management helps foreign investors design the right structure, secure licenses, and manage full compliance — so you can scale with confidence in Saudi Arabia.

Looking to establish your foreign-owned company in Saudi Arabia? NH Management offers full-service company setup, licensing, tax registration, and legal representation across KSA. Get in touch!