Saudi foreign company registration strategy

Although there are many challenges in registering foreign companies in Saudi Arabia, as long as they fully understand the local investment environment, registration process and relevant laws and regulations, make full preparations, and seek professional help, foreign investors can smoothly start their business journey in Saudi Arabia and share the dividends brought about by Saudi economic development.

Saudi company registration steps

application for Investment License (MISA)

material preparation: submit business plan, articles of association (Arabic notarized version required), parent company documents (such as business license, shareholder resolution), etc.

Approval time: usually 5-10 working days, some industries (such as manufacturing, information technology) can be accelerated to 2-4 weeks.

Key points:

confirm whether the scope of business is in industries where Saudi Arabia allows 100 percent foreign ownership (e. g. manufacturing, wholesale and retail, consulting services).

Sensitive areas (insurance, telecommunications, oil and gas) require joint ventures with a Saudi stake of at least 25%.

2. Company name retention and type selection

name requirements: Avoid religious and politically sensitive words and reflect business attributes (such as "Tech Solutions LLC").

Company Type:

limited liability company (LLC): suitable for small and medium-sized enterprises, with a minimum of 1 shareholder and a minimum registered capital of 100000 Saudi riyals, without immediate payment.

Joint venture company (Joint Venture): requires a local partner, suitable for resource complementary business.

Branch Office: Direct extension of the parent company without the need for an independent legal person.

Simple Joint Stock Company (SJSC): Suitable for financing or listing needs, no minimum registered capital limit.

3. Notarization and address verification

notarization of documents: the articles of association and the list of shareholders shall be translated and notarized in Arabic.

Office address: provide a lease contract (shared office space can also be), no virtual address.

4, business registration and capital verification.

Business Registration Certificate (CR): Submit materials to the Ministry of Industry and Commerce and receive the certificate after approval.

Registered capital:

trading company: minimum 30 million riyals (subject to capital verification).

Services/Manufacturing LLC: SAR 500000 (no immediate paid-up required).

Industrial LLC:1 million riyals (paid in at the time of establishment).

Bank account opening: deposit the registered capital and obtain the bank confirmation letter.

5. Tax and social security registration

tax number (TIN): apply to the tax bureau (ZATCA) for simultaneous registration of value added tax (VAT, tax rate 15%).

Social Security Account (GOSI): Employers pay 9% and employees pay 3%, which must be handled for local employees.

6, Chamber of Commerce Registration and Industry Licensing

chamber membership: Join the local chamber of commerce within 30 days of registration for an annual fee of not more than 10000 riyals.

Industry licensing: some industries (such as medical, education) need to apply for additional qualifications.

7, Visa and Residence Permit

investor visa: Application for the general manager, conversion of residence permit (Iqama), takes 2-4 weeks.

Employee Visa: According to the Saudization Policy (Saudization), the manufacturing industry is required to employ at least 14% of Saudi employees (technology companies can be exempted).

2025 Policy Dividends and Considerations

1. Opening of foreign ownership

most industries allow 100 per cent foreign ownership, but areas such as government procurement and public works still require local co-operation or sponsorship.

Implicit requirements: Some industries (e. g. education, health care) require local strategic partners when bidding.

2. Special Economic Zone Preferences

king Abdullah Economic City: Corporate income tax rate reduced to 5%, dividend withholding tax permanently 0. Zero tariff on imports of goods.

Jizan Special Economic Zone: provides zero VAT rate, foreign personnel tax exemption and other policies.

3. Key points of compliance operation

saudi Arabia policy: regularly submit employee quota reports and pay social security through the GOSI platform.

Annual Renewal: Business Registration Certificate (CR) and Trade Licence are subject to annual renewal.

Document notarization: all foreign language documents shall be translated and notarized in Arabic to avoid legal risks.

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