In line with Saudi Arabia’s Vision 2030, many international companies are eager to establish branches in the Kingdom.
If you're considering a foreign branch setup in Saudi, we guide you through the essential steps, legal requirements, and what to expect.
Quick facts at a glance: Opening a foreign branch in Saudi Arabia
To set up a foreign company branch in Saudi Arabia, you’ll need a minimum capital investment of SAR 500,000.
In many sectors, 100% foreign ownership is allowed, making it easier for international investors to maintain full control.
The process requires a Foreign Investment License from MISA and a verified physical office location, virtual offices aren’t accepted.
On average, it takes 2 to 3 months to complete the setup.
Requirements for foreign investors in Saudi involved are MISA, the Ministry of Commerce, ZATCA, and GOSI.
Saudi Arabia offers a competitive corporate tax rate of 20%, with no personal income tax, and profits can be repatriated freely with minimal restrictions.
What is a foreign company branch?
A foreign company branch is an extension of a parent company based outside the country.
It operates under the parent company’s name and legal structure, allowing it to conduct business activities directly in another country without creating a separate legal entity—in this case, within Saudi Arabia.
Why Open a Foreign Branch in Saudi Arabia?
Key reasons for opening a foreign branch:
Market potential: Saudi Arabia has a rapidly growing economy with a strong demand for goods and services across various sectors. It offers foreign businesses access to a large and increasingly diversified market.
Government support: Under Vision 2030, the Saudi government actively encourages foreign investment by offering 100% foreign ownership in many sectors, simplified licensing procedures, and attractive incentives for international companies.
Strategic location and economic reforms: Located at the crossroads of major global markets, Saudi Arabia serves as a key trade and logistics hub.
Recent regulatory and economic reforms have made it easier and more appealing for foreign companies to establish and operate branches in the Kingdom.
Additional benefits of foreign branch setup in Saudi:
Access to Major Projects & Public Contracts: With government-backed projects under Vision 2030, foreign branches can participate in tenders related to infrastructure, healthcare, technology, and energy.
Attractive Tax Environment: Saudi Arabia offers a low corporate tax rate (20%) for foreign entities and no personal income tax, resulting in significant savings.
Growing talent pool: The Kingdom is investing in education and workforce development, providing access to a skilled and competitive local talent base.
Improved business environment: The Saudi government has streamlined business processes, reduced bureaucracy, and launched digital platforms to facilitate company registration and operations.
Ease of repatriation: Foreign branches can repatriate profits and capital with minimal restrictions, making it easier to manage global cash flow.
Read also: Business Setup for Foreigners in Saudi Arabia
Important documents for opening a foreign branch in Saudi Arabia
Foreign investment license: You must obtain a license from the Ministry of Investment (MISA) to legally operate in Saudi Arabia.
Commercial registration (CR): Submit documents such as the parent company’s commercial registration, Articles of Association, Board Resolution approving the branch establishment, and Power of Attorney for the branch manager.
Proof of capital: Deposit a minimum capital of SAR 500,000 into a local Saudi bank account. This capital is required to show financial stability and support your business operations.
Office lease agreement: A physical office address is mandatory. Virtual or shared offices are not accepted for foreign branch registration.
Branch manager appointment: Appoint a branch manager and apply for their residency permit (Iqama). This manager must legally live and work in Saudi Arabia.
Tax registration: Register your branch with the Zakat, Tax, and Customs Authority (ZATCA) for tax purposes.
Social insurance registration: Enroll with the General Organization for Social Insurance (GOSI) for employee social insurance coverage.
Municipal and Sector-Specific licenses: Depending on the type of business, obtain the necessary municipal licenses or sector-specific regulatory approvals to operate legally in Saudi Arabia.
Power of attorney: A notarized Power of Attorney for the branch manager to act on behalf of the parent company.
By gathering these key documents and completing the necessary registration processes, you can set up a foreign branch in Saudi Arabia and start your full owned business operations in line with local laws and regulations.
How to open a foreign branch in KSA? A step-by-step guide
Opening a foreign branch in Saudi Arabia may seem complex at first, but with the right steps, the process becomes much clearer and smoother.
Here’s a clear, step-by-step guide to help you open a foreign company branch in the Kingdom:
First, the parent company must obtain a Foreign Investment License from the Ministry of Investment (MISA); this license legally allows the foreign entity to operate in the Kingdom.
Next, the company needs to register the branch with the Ministry of Commerce (MoC).
This includes submitting documents like the parent company's commercial registration, board resolution approving the branch setup, and power of attorney for the branch manager.
Following this, the branch must deposit the minimum capital investment—currently SAR 500,000—into a local Saudi bank to demonstrate financial stability.
Once deposited, the company must open a corporate bank account to facilitate future transactions and fulfill local banking obligations.
After registration, the company must open a file with the General Authority of Zakat and Tax (ZATCA), enroll with GOSI (for employee social insurance), and register with the Chamber of Commerce.
The company must also obtain a residency permit (Iqama) for the appointed branch manager, who will be legally responsible for operations in the Kingdom.
Additionally, a verified physical office is required; virtual or shared offices are not accepted for foreign branch registration.
Finally, the branch must meet all municipal licensing and regulatory requirements based on its business activity—this could include office space, local approvals, and hiring a local or foreign workforce in line with Saudization rules.
Final thoughts
- Opening a foreign branch in Saudi Arabia is more than just a legal process—it’s a strategic move toward tapping into one of the region’s most dynamic markets.
- With streamlined regulations, investor-friendly tax policies, and full ownership options in many sectors, the Kingdom offers a fertile ground for long-term business growth.
- By understanding the legal steps, preparing the required documents, and aligning with the country’s evolving vision, foreign companies can confidently take their place in Saudi Arabia’s expanding economy.
Thinking of setting up a foreign branch in Saudi Arabia?
Motaded’s expert team is here to guide you every step of the way—from licensing to full operational setup.
Contact us today and let’s turn your Saudi expansion into reality.
With Motaded, you don’t just get a service—you gain a reliable partner who helps you avoid delays, reduce paperwork, and start operations with confidence.
FAQs about foreign branch setup in saudi
How much does it cost to open a foreign branch in Saudi Arabia?
Opening a foreign branch in Saudi Arabia requires a minimum capital of SAR 500,000, along with additional fees for licenses, office setup, and legal documentation.
Can a foreign company own 100% of a branch in Saudi Arabia?
Yes, in many sectors, foreign companies can own 100% of a branch in Saudi Arabia without the need for a local partner.
What license is needed to operate a foreign branch in Saudi Arabia?
You need a Foreign Investment License from the Ministry of Investment (MISA) to legally operate a foreign branch in Saudi Arabia.
How long does it take to open a foreign branch in Saudi Arabia?
It typically takes 2 to 3 months to complete the process of opening a foreign branch in Saudi Arabia.
Do I need a physical office to register a branch in Saudi Arabia?
Yes, a physical office is mandatory to register a foreign branch. Virtual or shared offices are not accepted.
Can foreign branches repatriate profits from Saudi Arabia?
Yes, foreign branches can freely repatriate profits and capital from Saudi Arabia with minimal restrictions.