If you're thinking of expanding your business and entering a strong market like Saudi Arabia, then you really need to know all the details about business setup service in Saudi Arabia, the market there is full of opportunities, but you need to take the right steps from the start.
Why Are UAE Businesses Expanding to Saudi Arabia?
It's not something that just happened suddenly — no, there are very strong reasons why business owners and investors in the UAE are now looking at the Saudi market as a golden opportunity, Here are the top 3 things you need to know:
1. A Huge Market with Over 35 Million People!
Just imagine… You have a huge market of over 35 million people, all needing services, products, new ideas, and high quality. This means that when you open your business there, your chance of success increases a lot because the number of potential customers or clients is massive.
Simply put, the Saudi market is what people call a “ripe opportunity” for those who know how to enter it right.
2. Saudi Arabia Is Right Next Door!
The second advantage is that Saudi Arabia and the UAE are closely connected both geographically and economically.
So if you have a business doing well in Dubai or Abu Dhabi, you can easily open a branch in Riyadh or Jeddah without feeling like you're stepping out of your comfort zone. Flights are easy, shipping is easy, currencies are similar, and even the people’s culture is close…
So everything makes expansion easier, not harder.
3. Support from Saudi Arabia’s Investment Authority (MISA)
Now Saudi Arabia is working on a clear plan to attract investors from everywhere, especially from the Gulf. The Saudi Investment Authority (called MISA) has made some really helpful steps, like:
- Making it easier to get licenses.
- Opening new investment sectors.
- Relaxing some of the old strict conditions.
- Providing fast advisory and support services.
So instead of companies waiting for months to launch, now some things get done in just days!
Read also: Why Invest in Saudi Arabia? A Concise Guide for Foreign Investors.
Key Differences Between UAE and Saudi Business Setup
if you're thinking about starting your business in the Gulf and you don’t know whether to choose Saudi Arabia or the UAE, this needs some focus because each country has its own features and specific conditions, Here, I will explain the main differences in a simple and smooth way.
1. Speed and Ease of Setup
In the UAE, procedures are usually very fast, especially in Dubai and Abu Dhabi, and there are many free zones that give you big advantages like 100% ownership without a local partner. This makes setting up your company there smooth and comfortable, especially if you’re a foreigner.
In Saudi Arabia, the market is huge with over 35 million people, and the authorities have started to simplify procedures to encourage investment. The time needed to set up a company might be a little longer compared to the UAE, but it has become much easier than before.
2. Costs and Services
The UAE is generally a bit more expensive, especially Dubai, but their services are top level, which makes your investment there worthwhile. In Saudi Arabia, costs are generally lower, which helps if you’re just starting and don’t want to carry big expenses from the beginning, along with real government support for investors.
3. Taxes and Regulations
The UAE applies a VAT tax of 5%, while Saudi Arabia’s rate is higher at 15%, and they also impose corporate taxes. You should keep this in mind when planning your business, especially if your work depends on many sales transactions.
4. Employment and Workforce
In the UAE, you can easily hire foreigners and visa procedures are facilitated. In Saudi Arabia, there is a Saudization system you have to comply with, meaning a certain percentage of employees must be Saudi nationals depending on the business activity.
Business Setup Options in Saudi Arabia for UAE Investors
If you are an investor from the UAE and planning to expand your business in Saudi Arabia, you will find several options to start your project, and each type of company has its own advantages and suitable conditions, Let me explain the details simply and clearly:
1. Limited Liability Company (LLC)
This is the most common and widely established type in Saudi Arabia. It suits small and medium companies. It consists of partners (from 2 up to 50), and the liability is limited to the capital invested by each partner.
When to choose it?
If you have a new project in Saudi Arabia and want to own an independent company, or if you need a Saudi partner.
2. Branch of UAE Company
A branch simply works as an added arm of your UAE-based business — it’s not treated as a separate legal entity, this means your UAE company bears all the legal responsibilities, and the branch follows it.
When to choose it?
If your company in the UAE is successful and you want to expand your activity without establishing a new entity, and you want to keep the parent company’s brand.
3. Joint Stock Company (JSC)
This is a large company that can have many shareholders, and the capital is relatively large. It suits businesses that require huge funding.
When to choose it?
If you are a big investor planning a large project or want to enter the investment market officially and organized.
4. Representative Office
This is not a company that sells or provides direct services, but its role is to represent your company in the Saudi market, conduct market research, and build relationships.
When to choose it?
If you are still studying the market and want to start a presence without big costs or commitments, or want to open a channel for cooperation and communication with new clients.
Read also: The most important differences between the updated investment system and the foreign investment system.
How to Set Up a Company in Saudi Arabia (As a UAE Resident)
If you're planning to expand your business from the UAE to Saudi Arabia, there are steps you need to follow to establish your company in a legal and smooth way. Let me walk you through it step-by-step:
1. Business Plan and Consultation
The first thing you need to prepare is your business plan. You must identify your activity type, target market, and budget.
Also, it’s a good idea to start by consulting with experts or Saudi consultancy firms—this saves you time and effort. You can work with our consultancy firm, we can help you speed up the setup process and avoid mistakes.
2. Reserve the Company Name
You’ll need to choose a suitable name for your company and reserve it online through the Saudi Ministry of Commerce, The name must be unique and not already taken.
3. Get the Investment License from MISA
This is the authority responsible for facilitating investments in Saudi Arabia. You need to obtain an investment license from them to start your activity officially.
4. Register with the Ministry of Commerce
After you receive your license, you must register your company with the Ministry of Commerce so your company is legally recognized.
5. Set Up an Office Address
You need to have a physical address for your office in Saudi Arabia, whether renting a shop or an office. This is a mandatory step to complete the registration.
6. Tax Registration with ZATCA
Then, you’ll need to register with the Zakat, Tax and Customs Authority (ZATCA) to comply with any required tax or zakat obligations.
7. Open a Corporate Bank Account
It’s important to open a business bank account under your company name with one of the Saudi banks to manage your financial operations officially.
8. Register for GOSI (Social Insurance)
If you’re hiring staff, you must register with the General Organization for Social Insurance (GOSI) to ensure employee coverage and compliance.
9. Hire Staff with Saudization Consideration
If you’re a UAE entrepreneur, working with a well-established Saudi consultancy partner can make a big difference—not only in speeding up your paperwork but also in helping you understand the local market and skip a lot of the usual red tape.
Luckily, you can trust Motated team as a certain Saudization partner who offers this exact kind of support.
Read also: Open a bank account in Saudi Arabia.
Everything You Need to Know About Legal & Tax Considerations in Saudi Arabia
If you're planning to open your company in Saudi Arabia while coming from the UAE, you need to be aware of some important points regarding taxes and legal rules so you're not surprised by anything later.
Value Added Tax (VAT)
In Saudi Arabia, the VAT is currently 15%, and this is a fixed percentage on most goods and services. That means you need to add this tax to the invoices you issue to clients, and also submit tax returns regularly (monthly or quarterly depending on your business size). If your yearly revenue exceeds a certain threshold, you must register with the Zakat, Tax and Customs Authority (ZATCA).
Saudization Requirements
There’s something called "Saudization" or nationalization, and this is a policy that requires business owners to employ a certain percentage of Saudi citizens. This percentage changes depending on your business activity and the number of your employees.
Additional Licenses
Not all activities can run with just one license. Some businesses need extra approvals besides the investment license.
For example:
- If you want to open a restaurant: you’ll need approvals from the Municipal Affairs Ministry and the Food & Drug Authority.
- If you want to work in education or training: you’ll need a license from the Ministry of Education or the Technical and Vocational Training Corporation.
So it all depends on your activity, and it’s essential to check requirements from the start.
The reliable support you need to launch your business smoothly in Saudi Arabia
If you’re planning to launch your business in Saudi Arabia and want to enter the market with peace of mind, let Motaded be your first partner on the journey.
This platform doesn’t just offer consultations — it simplifies everything from your business idea to opening your office doors and hiring your team.
How They Support You as an Investor:
- Full feasibility study and complete business planning.
- Assistance in obtaining all required licenses from government authorities (like MISA, Ministry of Commerce, etc.).
- Registering your company with the legal structure that best suits your needs.
- Tax consultancy and registration support with ZATCA (Zakat, Tax and Customs Authority).
- Providing a suitable commercial address based on your business activity.
- Helping choose the right setup model (e.g., branch, joint stock company, representative office).
- Assisting in opening corporate bank accounts and completing banking procedures.
- Recruitment support and ensuring compliance with Saudization requirements.
- Ongoing follow-up to keep your business compliant with regulations and laws.
Ready to start the right way with less hassle? Contact them now:
- [email protected]
- Or call: +966 53 979 7197
FAQs About “business setup service in Saudi Arabia”
Can I fully own my company as a foreign investor?
Yes, in most sectors you can own 100% of your company without a Saudi partner, as long as you get a license from MISA and meet the required conditions.
Do I need to have a physical office in Saudi Arabia?
To register your company, you’ll need to list a valid office address — whether it’s a physical location or a licensed virtual setup.
Are there Saudization requirements for hiring?
Yes, the Saudization system requires you to hire a certain percentage of Saudi nationals depending on your company’s activity and number of employees.
Is there a minimum capital requirement?
This depends on your business type and activity. Some sectors may require a specific capital amount, especially for larger commercial activities.
Can I start the process from the UAE?
Yes, you can complete most of the procedures online, but some stages may require your presence in Saudi Arabia or a power of attorney for a local representative.
Is there any firm that can guide me through the setup process?
Yes, there are specialized companies like “Motaded” that can support you throughout the setup process from A to Z, saving you time and effort.