Streamline Your Investor Journey: Register Your Company in Saudi Arabia with Ease
Saudi Vision 2030 has transformed the Kingdom effectively into a thriving business hub that creates unprecedented opportunities for global entrepreneurs, Middle Easters in particular, and has moved the Saudi market as well within a year. Saudi Arabia in 2024 - An amazing number tells an amazing story. Public investment grew by 79% over last year, with 121,000 commercial registrations issued in Saudi Arabia during the second quarter alone, bringing the total number of commercial registrations to more than 1,518,000 across all regions of the Kingdom. [1]
The process of registering a company in Saudi Arabia may seem like a complex maze of regulations, requirements and procedures to many foreign investors due to their lack of knowledge of some of the systems, registration methods and the best ways to open a company in Saudi Arabia.
Your plans to register a company in Saudi Arabia as a small business owner, or establish a company in Saudi Arabia, as for a large company establishment, need a clear roadmap to guide the process effectively. Each step requires guidance from experts who have the knowledge and familiarity with this method - from choosing the right corporate entity for the foreign investor to completing the mandatory registrations with all governmental agencies.
Understanding Business Structures in Saudi Arabia
Saudi Arabia offers a variety of business registration structures and entities. The Saudi system allows businesses to choose from different types of entities, each with its own benefits and requirements.
Foreign investors typically choose from the following common business structures:
- Limited Liability Company - requires a capital of not less than 25 thousand Saudi Riyals [1] and it is not required to deposit the capital in the investor's bank account.
- Joint Stock Company - requires a capital of not less than 500,000 thousand Saudi Riyals for private companies [1] and the paid-up capital is not less than a quarter.
- Branch Office - requires a capital of not less than 25 thousand Saudi Riyals [1]
- Representative Office - does not require a capital of not less than 25 thousand Saudi Riyals
Types of Investment Licenses, Capital and Requirements:
It should be noted that each type of license has its own requirements, for instance: A commercial license for import and export activities, a professional license and a real estate license if the company is 100% foreign owned.
Foreign investors can now fully own wholesale and retail trading companies with a minimum capital of SAR 30 million [2]. These companies must show their presence in at least three regional or global markets [2].
However, the new Investment Law to be issued in 2025 has made things easier by removing the need for foreign investment licenses [3]. This law ensures equal treatment of domestic and foreign investors while protecting intellectual property rights.
Also, industrial projects need a minimum capital of SAR 25 thousand, and agricultural projects require the same amount as well. These requirements might change based on your business activity and ownership structure.
Most foreign investors choose the Limited Liability Company (LLC) structure because it offers flexibility and limited liability protection. An LLC can have 2-50 shareholder, and their liability extends only to their contributed capital.
Essential Pre-Registration Requirements:
The simple and practical steps will help you understand the complex procedures for establishing a company in Saudi Arabia. Your Saudi business dreams can become a reality with the right approach! As we will be explaining the basic pre-registration requirements.
Do you want to register your company in Saudi Arabia? Let’s take a look at what you need to get started:
Foreign investors need to obtain an investment license from the Ministry of Investment. You will need three important documents to obtain this license:
- A copy of your home country’s commercial registration certified by the Saudi Embassy [5] or Apostille.
- Last year’s financial statements from an internationally recognized accountant firm certified by the Saudi Embassy [5] or Apostille.
- The company’s Articles of Association certified by the Saudi Embassy [5] or Apostille.
Step-by-Step Registration Process:
Now that we’ve covered the requirements, let’s move on to the actual registration process. Here’s a step-by-step guide to help you set up your business in Saudi Arabia:
You’ll need to get your MISA license approved, which typically takes 5-7 business days[10]. The next important steps are:
1. Ministry of Investment:
- MISA License Application
- Issuance of Investment License
- The process takes 5-7 business days
2. Ministry of Commerce:
- Reservation of the company’s trade name in Saudi Arabia.
- Drafting the company’s articles of association.
- Issuing the company’s articles of association.
- Issuing the company’s commercial registration in Saudi Arabia.
- Opening an account at the Saudi Chamber of Commerce in the investor’s city.
- Authorization of the signature of the general manager or the continuance at the chamber of commerce.
Also, you must complete the following mandatory registrations:
The Chamber of Commerce needs to register you within 30 days of obtaining your commercial registration
3. Ministry of Human Resources:
The Ministry of Human Resources is the third step for a foreign investor wishing to open a company in Saudi Arabia. Where the registered company must:
- Open an account in the labor office.
- Subscribe and activate Qiwa platform.
- Issuance of the General Manager’s Visa: the investor or the general manager’s visa must be issued in Saudi Arabia, and this matter must be completed by the Ministry of Foreign Affairs and the Saudi embassy in the investor's country.
4. General Organization for Social Insurance:
Registration with the General Organization for Social Insurance (GOSI) is a crucial part in registering businesses in Saudi Arabia as the company in KSA must be linked to the investor in the wage protection system, Saudization and Nitaqat as well.
5. National address of the company in Saudi Arabia:
Any company in Saudi Arabia must have a national address from the very beginning of the first steps, Ministry of Investment, until the last step, which is the bank account. Our company Motaded can provide multiple services for the temporary national address for foreign companies wishing to register a company in Saudi Arabia.
6. General Authority of Zakat and Income:
Registration with the General Authority of Zakat and Income (GAZT)
After completing the above steps, the investor wishing to open a company in Saudi Arabia and register a commercial register in Saudi Arabia must have an account with the General Authority of Zakat and Income. Therefore, Motaded Company offers all its expertise to obtain the registration certificate for the General Authority of Zakat and Income as well as the value-added certificate for foreign companies in Saudi Arabia.
7. Bank account:
A commercial bank account is very important for your operations and for registering the company in Saudi Arabia. The new Saudi Commercial Register Law requires all merchants to operate through dedicated commercial bank accounts. Opening a bank account in Saudi Arabia for foreign companies ranges between 3 to 4 business days and major Saudi banks will need these documents from you:
- Commercial registration of the parent company
- Article of association of the parent company
- Commercial registration of the Saudi company
- Article of association of the Saudi company
- National address of the company
- General manager’s Iqama/Residency
The establishment process takes 6 to 8 weeks [13] with Motaded Company as our relationship with government agencies has become well-established and approved as an accredited management consultant with the Saudi Ministry of Investment and other government agencies in Saudi Arabia.
Note that proper records must be kept for all registrations and certificates. These documents will be vital for your future business operations and annual renewals.
Conclusion
Saudi Arabia has become a top destination for global businesses, thanks to growing foreign investments and business-friendly reforms. Our extensive work helping companies establish their presence in the Kingdom has taught us what makes registration successful.
Businesses must first select an appropriate structure - LLC, Joint Stock Company, or Branch Office. These structures have specific capital requirements and regulatory obligations. The LLC route attracts most foreign investors because it offers flexibility and simple management.
Proper documentation ensures smooth registration. Companies need authenticated commercial registration copies, financial statements, and Arabic translations of all official documents. Registration takes 6-8 weeks and includes MISA licensing, Ministry of Commerce registration, and tax documentation.
The process demands careful planning and expert guidance. Ready to begin your business venture in Saudi Arabia? [Get your free consultation] with our experienced team today.
Note that Saudi Arabia's Vision 2030 economic diversification creates excellent opportunities for foreign businesses. Working with qualified professionals and following these guidelines will lead to successful company registration.
FAQs
Q1. What are the main steps to register a company in Saudi Arabia?
The main steps include obtaining a MISA license, registering with the Ministry of Commerce, obtaining a Commercial Registration certificate, registering for taxes, and setting up a bank account. The entire process typically takes 6-8 weeks to complete.
Q2. Can foreign investors own 100% of a company in Saudi Arabia?
Yes, foreign investors can now own 100% of wholesale and retail trading companies in Saudi Arabia. However it must demonstrate presence in at least three regional or global markets.
Q3. What is the minimum capital requirement for registering a company in Saudi Arabia?
The minimum capital requirement varies depending on the type of business. For a Limited Liability Company (LLC), it's SAR 25,000. Industrial ventures require SAR SAR 25,000, agricultural projects need SAR 25,000 as well.
Q4. What documents are required to register a company in Saudi Arabia?
The main documents include a copy of your commercial registration from your home country, financial statements for the previous year, Arabic translations of all official documents, and the company’s articles of association. They must be certified by the Saudi embassy or by Apostille.
Q5. How long does it take to obtain a MISA license in Saudi Arabia?
Obtaining a MISA (Ministry of Investment of Saudi Arabia) license typically takes 5-7 working days for approval. This is one of the first steps in the company registration process.