Thinking about expanding your business into the Middle East? Opening a branch company in Saudi Arabia might be the smartest move you make this year, with big opportunities and a growing economy, setting up a branch here is easier than you think.
How to open a branch for your company in Saudi Arabia?
Planning to grow your business with a branch in Saudi Arabia? Let me walk you through the main steps!
- Parent company paperwork: You’re gonna need the Articles of Association and the Certificate of Registration—make sure you’ve got them ready, and a power of attorney for your local rep, make sure these are translated and officially stamped.
- Shareholder approval: Shareholders have to write a letter asking to open a branch and another one naming the branch manager (plus a copy of their passport and info).
- Make sure your branch has an official address in Saudi Arabia, you’ll need proof of it.
- You gotta have the same capital as your main company, and it needs to go into a Saudi bank account under the branch’s name.
- Liability: The parent company takes full responsibility for the branch’s actions.
- Parent company requirement: Your main company must be at least 3 years old, and you’ll need proof of that.
A branch company is basically an extra location for your main company—it doesn’t stand alone, so before you can open one in Saudi Arabia, you’ve got to have an established parent company first.
Read more about Why Invest in Saudi Arabia? A Concise Guide for Foreign Investors.
Where to set up your branch in Saudi Arabia?
If you're planning to open a branch office in Saudi Arabia, picking the right spot and business setup is key, the location you choose can make it easier for customers to find you, and the business model you go for will shape how you operate, here’s what you should keep in mind:
- Choose your location wisely: Make sure your office is in a place where customers can easily reach you. Also, think about rent and other costs, some areas might be pricier than others.
- Decide on the right business model: You’ve got a few options for how your branch can operate:
- Technical Scientific Services Office (TSSO): This works if you’re offering specialized products and need a service deal with a local company.
- Temporary Commercial Registration (TCR): This setup is mainly for working on contracts with the Saudi government or semi-government entities—it’s more of a temporary setup.
- Permanent branch: This is a full branch that acts as an extension of your main company, staying completely under its control.
If you’re looking for something simple and straightforward, the permanent branch is usually the best pick, it avoids the extra restrictions that come with a TSSO or TCR, while still letting you operate fully under your parent company.
Wondering how to register and get a license for your branch in Saudi Arabia?
Thinking of opening a branch office in Saudi Arabia? Let’s talk about what you need, you’ll need to go through a few key steps to get registered and licensed so you can start doing business legally, here’s what you’ll need to register your branch company in Saudi Arabia:
- Appoint a legal rep who can act on behalf of your company in Saudi Arabia.
- you’ll need to grab a commercial registration certificate from the Ministry of Commerce and Industry.
- You’ll also need to apply for an investment license through SAGIA (Saudi Arabian General Investment Authority).
- You’ll need to put at least SAR 500,000 in a local Saudi bank as your capital.
But wait, what’s the big advantage of opening a branch company? You won’t have to submit Articles of Association like other business types, but depending on what kind of business you’re running, you might need to get extra permits.
Why Opening a Branch company in Saudi Arabia Is a Smart Move for Your Business
Thinking about growing your business in Saudi Arabia? Opening a branch company might be just what you need, it’s a faster, easier way to enter the Saudi market without all the complicated steps of setting up a new company, here’s why having a branch in Saudi Arabia is a smart move:
- you’ll own it 100% and won’t need a local sponsor
- It’s quicker and simpler than creating an LLC since you skip the Articles of Association approval.
- Helps your brand gain trust and recognition faster in the local market.
- Lowers risk while opening doors to new business opportunities.
- Gives you direct access to Saudi customers and clients.
- It’s a win-win, you promote your parent company while setting up a solid local presence.
- Enjoy tax benefits through Saudi’s double tax agreements.
- Build a diverse team with both local and international talent.
- Avoid the extra paperwork and formalities that other company types need.
With a branch office, you’re closer to Saudi customers while staying connected to your parent company, it’s like getting the best of both worlds!
How Local Experts Can Help You Open Your Saudi Branch Office Smoothly
Opening a branch company may be easier than starting an LLC, but it still comes with challenges, that’s why having local experts by your side makes the process way less stressful and much faster, here’s what a business consultant can help you with:
- Applying for a Saudi Business Visa.
- Preparing and reviewing all needed documents.
- Handling the office registration process.
- Helping you open a local bank account.
- Providing tax advice tailored to Saudi regulations.
- Giving you step-by-step legal guidance.
- Helping with any licensing paperwork.
- Sharing market insights so you know what to expect.
- Supporting you with hiring and recruitment.
Requirements for Opening a Branch Company in Saudi Arabia
Thinking of opening a branch Company in Saudi Arabia? Before you get started, there are a few important requirements you’ll need to meet to make it happen, here’s what you’ll need to open your Saudi branch:
- Minimum capital: You’ll need to deposit at least SAR 500,000 into a local bank, and it might be more depending on your business type.
- Before starting, your parent company should obtain a foreign business license from the Ministry of Investment (MISA).
- Commercial registration: You’ll need to register your branch with the Ministry of Commerce and Industry (MOCI) to get your Commercial Registration Certificate.
- Bank account: Your company must open a business bank account in Saudi Arabia to deposit the capital and handle transactions.
- Residency for the manager: The person managing your branch will need to get a valid Saudi residency permit (Iqama).
- Physical office: You’re required to have a registered office address in one of Saudi Arabia’s cities.
Read also: Branch License in Saudi Arabia | Complete 2025 Guide.
Ready to Launch Your Business in Saudi Arabia? Here’s Why Motaded Got You Covered!
Starting a business in Saudi Arabia? It can feel like a maze, but not with Motaded by your side, we’re not just another service provider; we’re your go-to team for making the process simple, fast, and stress-free.
From setting up an LLC to securing every license you need, we handle the tricky stuff so you don’t have to.
Whether you’re a local dreamer or an international investor, we’re here to help you:
- Get your business up and running without the headache.
- Navigate the Saudi market with confidence.
- Skip the red tape with our PRO and GRO experts.
- Stay on top of banking, tax, and compliance from day one
Let’s make it happen—your business, your way, done right.
📧 [email protected]
📞 +966 53 979 7197
Documents Needed to Open Branch Company in Saudi Arabia
If you're planning to set up a branch Company in Saudi Arabia, make sure you’ve got the right paperwork ready, it’s a key step to getting your business up and running smoothly, here’s a quick checklist of the documents you’ll need:
- A valid business license from your parent company.
- The company’s Memorandum of Association.
- An official audit report for your parent company.
- A certified shareholder’s certificate.
- A clear copy of each shareholder’s passport.
Requirements for Registering a Branch Company in Saudi Arabia
Planning to register a branch Company in Saudi Arabia? There are a few important rules you’ve got to follow before getting started. Here’s what you need to know, here’s what’s required:
- Your parent company must be at least 3 years old, with proof to show it.
- The branch has to match the same paid-up capital as a subsidiary—same amount, no shortcuts.
- You’ll need to deposit the capital into a Saudi business bank account.
- The parent company is fully liable for everything the Saudi branch does.
FAQs about Open Branch company in Saudi Arabia
Can a foreign company fully own a branch in Saudi Arabia?
Yes, A foreign company can own its branch completely in Saudi Arabia, so there is no local partner required, only the right license from MISA.
How long does it actually take to open a branch in Saudi Arabia?
It usually takes about 1 to 3 months, depending on how fast you get your paperwork sorted.
Can my branch do different activities from the parent company?
Nope, the branch has to stick to the same business activities as the parent company.
What taxes will my branch have to pay?
A foreign branch pays 20% corporate income tax on its profits. Keep that in mind when planning.
Do I need a physical office in Saudi Arabia?
Yes, you’ll need an actual office address in Saudi Arabia to register your branch—virtual offices won’t cut it.
Can I open a bank account before registration?
Not yet, you’ll need to get your Commercial Registration and MISA license first before opening a bank account.
Can I send profits back to my home country?
Yes, you can transfer profits abroad, as long as all taxes are paid and you're compliant.