10 Steps to Setting Up Your Business in Saudi Arabia

Comprehensive Guide: 10 Steps to Setting Up Your Business in Saudi Arabia

I. Introduction: Saudi Arabia – A Promising Investment Destination

The Kingdom of Saudi Arabia is undergoing an unprecedented economic transformation under the umbrella of Vision 2030, which aims to diversify the economy away from oil dependence and build a vibrant society and a prosperous economy. This vision is not merely a plan but a comprehensive national strategy reshaping the Kingdom's economic and social landscape. These significant and bold reforms have notably attracted Foreign Direct Investment (FDI), with inbound flows reaching a record 96 billion Saudi Riyals (25.6 billion USD) in 2023, marking a 50% year-on-year increase.¹ This growth reflects the increasing confidence of international investors in the Saudi economic environment.

Vision 2030 and FDI Catalysts

The economic reforms in Saudi Arabia are part of an ambitious government strategy aimed at solidifying the Kingdom's position as a global hub for business and investment. This direction reflects a radical shift in economic policy, where the Kingdom is no longer merely inviting investment but actively reshaping its legal and regulatory environment to be a competitive and attractive destination for foreign capital and global talent. The significant increase in FDI flows is a direct and clear indicator of the effectiveness of these policy changes.¹

Key catalysts for foreign investment in the Kingdom include:

• 100% Foreign Ownership: Foreign investors are now permitted 100% ownership in most economic sectors, eliminating the need for a local partner in many cases and removing a historical barrier to foreign investment, thus facilitating company formation in Saudi Arabia.¹
• New Investment Law: Effective February 2025, this law represents a fundamental reform. It replaces the previous Ministry of Investment (MISA) licensing system with a simplified registration mechanism, reducing bureaucratic complexities. The law also ensures equal treatment for foreign and local investors, provides strong protection against expropriation, guarantees freedom of fund transfer, and enhances intellectual property protection, creating a more stable and attractive legal environment for investment in Saudi Arabia.¹
• Special Economic Zones (SEZs): The establishment of Special Economic Zones such as King Abdullah Economic City, Ras Al-Khair, Jazan, and the Integrated Industrial and Logistics Zone in Riyadh has introduced exceptional incentives. These incentives include a 5% corporate income tax for 20 to 50 years, 0% VAT on intra-zone trade, 0% withholding tax on profit repatriation, comprehensive customs exemptions, and flexible regulations specifically designed for foreign talent. These zones are hubs for growth and innovation and offer excellent opportunities to obtain a free zones license in Saudi Arabia.¹
• Premium Residency Program: Launched in 2023, also known as the "Golden Visa," this program allows foreign investors to obtain long-term residency, full business ownership, real estate investment rights, and family sponsorship without the need for a local sponsor. Flexible options are available, including temporary residency (SAR 100,000 annually) or permanent residency (SAR 800,000 one-time fee).¹ This program enhances the Kingdom's attractiveness for 
• Regional Headquarters (RHQ) Initiative: As part of Vision 2030, the government launched the Regional Headquarters initiative for international companies, aiming to make the Kingdom a regional hub for business and investment in the MENA region. This initiative offers tax incentives (exemptions up to 30 years) and operational incentives (immediate visas for executives and employees, flexible employment pathways, priority in government contracts).¹ The 

foreign investors in Saudi Arabia.

RHQ license in Saudi Arabia is a strong incentive for global companies.

The Role of Motaded.com.sa as a Strategic Partner for Investors

Motaded.com.sa is a vital platform aimed at enabling foreign investors to seamlessly and comprehensively set up their businesses in Saudi Arabia. Motaded's mission defines itself as a comprehensive partner offering integrated solutions to foreign investors, assisting them in establishing their company in Saudi Arabia "from A to Z".¹

The core value offered by Motaded lies in simplifying the complex regulatory environment and providing integrated business solutions. Motaded derives its competitive advantage from its deep government relations, which lend it significant legitimacy and trust, and from its commitment to digital transformation through its proprietary CEM ERP system.¹

Given the rapid digital transformation of government services in the Kingdom, where many procedures are now conducted through multiple digital platforms such as "Qiwa" ², "Mudad" ³, "Fasah" ⁴, "Sabel" ⁵, "Muqeem" ⁶, "Absher" ⁷, "Tawakkalna" ⁸, and "Nafath" ⁹, foreign investors may find it challenging to navigate these diverse systems. This is where Motaded emerges as a vital digital bridge. Through its CEM platform, Motaded provides a unified point of contact and integration with various government platforms and systems relevant to investment.¹ This approach not only reduces complexity and fragmentation but transforms what could be a bureaucratic hurdle into a core service advantage. Motaded's ability to centralize communications, document exchange, and progress tracking significantly reduces repetitive manual interactions, minimizes the likelihood of human error, and accelerates the processing of government-related applications.¹ This positioning makes Motaded an indispensable expert in GovTech, crucial for investors seeking efficiency and transparency in an evolving digital regulatory environment.

II. Essential Steps to Setting Up Your Business in Saudi Arabia

Setting up a company in Saudi Arabia is a structured process that requires adherence to a series of official procedures. To facilitate this journey for investors, the following table outlines the essential steps, relevant government entities, estimated durations, and associated government fees for each stage. This table is designed to be a practical reference, allowing investors to plan ahead and effectively determine budgets and timelines, thereby reducing any ambiguity they might encounter when starting a business in Saudi Arabia.

Step 1: Initial Planning, Feasibility Study, and Legal Entity Selection

This step is the starting point for any business setup in Saudi Arabia. Before proceeding with any formal procedures, the investor must conduct a comprehensive feasibility study of the Saudi market, identify the target business activity, and choose the most suitable legal entity for their business. This entity can be a foreign company branch, a Limited Liability Company (LLC), a Simplified Joint Stock Company, or other available legal forms. This involves a precise understanding of market requirements, the competitive landscape, and specific sectoral regulations that may affect the proposed activity.¹ This step is crucial to ensure that the business model aligns with the Saudi regulatory environment and maximizes available opportunities.

Although this step does not involve direct government fees, it represents the strategic foundation for the project's success. Starting with careful study and strategic planning significantly reduces operational risks, ensures regulatory compliance from the outset, and helps select the most appropriate business structure. Neglecting this foundational stage can lead to operational inefficiencies or non-compliance with regulations, potentially costing the investor significant time, effort, and financial resources in the future. Motaded offers valuable consulting services at this early stage, guiding investors through critical decisions related to market entry and legal structuring.¹

Step 2: Document Attestation and Legalization Outside KSA

This stage requires the attestation of essential company and shareholder documents by the competent authorities in the country of origin. These documents typically include the commercial registration, articles of association, financial statements, and powers of attorney. Attestation is usually done via Apostille if the country is a member of the Hague Convention, or through the Saudi Embassy in the country of origin.¹ This step ensures the legal recognition of documents internationally and locally and is a prerequisite for proceeding with 

company registration in Saudi Arabia procedures.

This step, although purely administrative, serves as a fundamental gateway to the formal establishment process. Without properly attested and legalized documents, no registration or licensing procedures can commence within the Kingdom. Adherence to international and local legal requirements for document attestation ensures the validity of the documents and prevents the investor from any delays or rejections of their applications in subsequent stages. Motaded provides specialized support in this process, simplifying procedures that can be complex and time-consuming for investors unfamiliar with the precise requirements.¹

Step 3: Obtain Investment License from Ministry of Investment (MISA)

After completing document attestation, this step begins with opening an electronic investor account at the Ministry of Investment (MISA), the primary entity responsible for attracting and enabling foreign investment in the Kingdom. Subsequently, the investment license application is submitted after reviewing the documents and ensuring they meet all requirements. The license is issued after careful follow-up and final approval from the Ministry.¹ This license serves as the initial approval for the foreign company to operate in the Kingdom and was previously known as the 

SAGIA license Saudi Arabia.

The Ministry of Investment license, or its equivalent simplified registration mechanism that will come into effect in February 2025 under the new Investment Law, remains the fundamental approval for foreign entities to legally operate in Saudi Arabia.¹ It represents the government's official welcome and commitment to supporting the investor. Motaded's direct relationship with the Ministry of Investment gives it a significant advantage in facilitating this crucial step, ensuring a smooth and efficient process for obtaining this essential license.¹

Step 4: Issue Commercial Registration from Ministry of Commerce (MoC)

After obtaining the investment license, the process moves to the Ministry of Commerce to issue the Commercial Registration, which is the company's legal identity in the Kingdom. This step includes reserving the company's trade name (in Arabic and English) and preparing the articles of association that define the chosen legal entity type, such as a foreign branch or a Limited Liability Company.¹ The Commercial Registration is issued electronically after the articles are approved. The Chamber of Commerce account is also activated and linked to the Commercial Registration, a necessary step for joining the Saudi business community and obtaining a 

Saudi commercial register.¹

This step is considered the company's "birth certificate" in Saudi Arabia, establishing its official existence and allowing it to conduct commercial activities. The choice of legal entity, determined in the first step, is formalized here, impacting liability, governance, and scope of operations. The shift towards "electronic" issuance of the Commercial Registration reinforces the broader trend of digital transformation within Saudi government services.¹ Integration with the Chamber of Commerce is vital for official communications, certifications, and business networking. Motaded's expertise in legal structuring and electronic registration ¹ is crucial to ensuring compliance and efficiency at this foundational stage.

Step 5: Activate Ministry of Human Resources and Social Development and Issue General Manager Visa

This stage is vital for enabling the company to hire employees and manage its operations. It involves activating the establishment's account with the Ministry of Human Resources and Social Development (MHRSD) ¹⁶, linking the commercial registration, and activating the "Qiwa" platform for all work-related services.² This is followed by submitting a visa application for the General Manager with the profession "General Manager," including selecting the embassy and port of entry, and registering and attesting the visa on the "Enjaz" platform.¹⁷ It also requires issuing a letter from the Chamber of Commerce ¹⁵, professional accreditation approval ¹, preparing and attesting the employment contract, issuing Saudization and debt-free certificates, and making a quota of two visas available to the company based on the activity type.¹ This step is essential for obtaining a 

work permit in Saudi Arabia and an investor visa in Saudi Arabia.

This step is characterized by its complexity, involving multiple government platforms (MHRSD, Qiwa, Enjaz) and coordination between several entities (Chamber of Commerce, Ministry of Foreign Affairs). This complexity indicates the Saudi government's strong focus on regulating employment, ensuring proper documentation for foreign talent (especially the General Manager), and promoting Saudization efforts (Nitaqat program and Saudization certificate). "Professional accreditation" ¹ and the "Wage Protection System" ¹ also highlight the emphasis on a regulated and compliant labor market. Securing the General Manager's visa and activating MHRSD platforms are crucial for the company's operation and its ability to hire. The multifaceted nature of this stage requires specialized expertise. Motaded's comprehensive HR and visa services ¹ are designed to navigate these complex requirements, transforming potential administrative hurdles into a streamlined process.

Step 6: Activate General Organization for Social Insurance (GOSI)

This step is necessary to ensure compliance with Saudi social insurance regulations. It involves activating the account with the General Organization for Social Insurance (GOSI) ¹⁸ and issuing the establishment's subscription number. The "Nitaqat" program is also activated to determine the establishment's Saudization percentage, and the "Mudad" platform is activated for wage management and compliance with the Wage Protection System.³ Finally, the social insurance and compliance certificates are issued, which are necessary for official dealings and tender submissions.¹

Registration with GOSI and activation of the "Mudad" platform are essential to ensure compliance with Saudi labor laws regarding social insurance contributions and wage protection. The "Nitaqat" program ¹ is directly linked to the government's Saudization efforts, significantly impacting the company's ability to hire and retain foreign labor. The "Mudad" platform, as the official operator of the Wage Protection System ³, ensures transparency and accountability in wage payments, protecting both employer and employee rights. This step is crucial for establishing the company's compliance with social insurance regulations and wage transparency, which is vital for maintaining good standing and avoiding penalties. Motaded's expertise in HR and payroll compliance ¹ is essential for seamless integration with these systems and ensuring ongoing adherence to labor laws.

Step 7: Activate Zakat, Tax and Customs Authority (ZATCA)

This step is fundamental for fulfilling tax and customs obligations. It involves creating an establishment file in the Zakat, Tax and Customs Authority (ZATCA) ¹⁹ and linking it to the Commercial Registration. Subsequently, the Zakat and Income Tax certificate and the VAT certificate are issued.¹ The company is also registered on the "Fasah" platform for customs clearance ²⁰, a vital platform for companies dealing with import and export. It is noted that the Fasah registration application may be rejected until the General Manager obtains residency in Saudi Arabia, emphasizing the interconnectedness of procedures.¹ This step is necessary for 

tax registration in Saudi Arabia and VAT in Saudi Arabia.

Registration with ZATCA is essential for all tax and customs obligations, including VAT and Zakat. The inclusion of the "Fasah" platform highlights the importance of customs clearance for companies involved in international trade. The explicit warning that "Fasah" registration may depend on the General Manager's residency indicates the interconnectedness of various bureaucratic processes and the sequential nature of some government requirements. This step ensures the company's full financial and commercial compliance, enabling it to conduct business legally and efficiently within the Saudi market and internationally. Motaded's accounting services ¹ are crucial for navigating the tax landscape, ensuring accurate reporting, and facilitating smooth customs operations.

Step 8: Register National Address (Sabel Platform)

Registering the National Address is a mandatory administrative step for all establishments. This step involves activating the account on the "Sabel" platform (Saudi Post) ²¹ and registering the establishment's National Address based on its physical location. After registration, the official National Address certificate is issued, which is used as proof of location for all government and commercial entities and facilitates the receipt of correspondence and parcels.¹

The National Address, managed by the "Sabel" platform (Saudi Post), serves as the essential "spatial identity" ²¹ for all official government and commercial dealings. Its free nature indicates a strong government push for universal adoption, recognizing its importance in administrative efficiency, service delivery, and logistical accuracy. It supports reliable communication between businesses and government entities. Establishing a National Address is a mandatory administrative step that provides the company's official physical and digital location. It is a prerequisite for many other government services, ensuring easy and effective official communication.

Step 9: Residency Procedures for General Manager and Personal Platform Activation

After the General Manager enters the Kingdom under the previously issued visa, residency procedures begin. This stage includes undergoing a medical examination at accredited centers for electronic submission of results, and approving the General Manager's medical insurance by issuing an insurance policy and linking it to the platforms. This is followed by issuing work permit fees through the Ministry of Human Resources and paying passport fees (Immigration Office) for residency issuance. After completing the examination, insurance, and payment, the General Manager's residency is issued. This step also includes issuing a Saudi mobile number in the General Manager's name, activating their fingerprint in the "Absher" platform ⁷, activating their account in "Tawakkalna" ⁸ and "Nafath" ⁹ to enable single sign-on for government services, and finally activating the General Manager's personal bank account.¹ These procedures ensure the General Manager's ability to legally reside and work in the Kingdom and facilitate their access to all necessary government and personal services.

This step ensures that key foreign personnel, especially the General Manager, can legally and effectively reside and work in the Kingdom. Linking the General Manager's personal identity to the company's operational capabilities through the activation of platforms like "Muqeem" ⁶, "Absher," "Tawakkalna," and "Nafath" represents a crucial aspect of regulatory compliance. These digital platforms are not merely administrative tools but are integral to the government's infrastructure that enables official interactions, resident management ⁶, and access to various government services. Completing these procedures ensures that the General Manager can smoothly manage the company's daily operations, including dealing with banks and government entities, reflecting the utmost importance of the legal and operational presence of key officials.

Step 10: Activate Company Bank Account

This is the final step in the company formation process, enabling the company to commence its financial transactions. It involves submitting the required documents to the chosen bank, which are usually formally submitted through Motaded. The bank may request a legal consultation from the Saudi Central Bank (SAMA) ²² to ensure compliance with banking regulations. After the bank reviews the documents, the account is opened, and the International Bank Account Number (IBAN) and company bank account details are obtained. Finally, the account is activated through the bank's electronic services, allowing the company to make transfers, receive payments, manage payroll, and conduct all necessary financial operations.¹

Opening the company bank account is the last and most important step in activating the new entity's financial capabilities. Without an active bank account, the company cannot manage its revenues, pay its employees' salaries, settle its obligations, or conduct any essential business transactions. Guidance from the Saudi Central Bank ²⁴ ensures that all banking procedures comply with the Kingdom's strict regulatory frameworks, providing a stable and secure financial environment for businesses. Completing this step signifies the company's full financial operation, allowing it to engage in the Saudi market efficiently and confidently, and confirms its readiness for growth and expansion.

III. Conclusion

Motaded Company Limited possesses strong potential to become a leader in the foreign investment facilitation market in Saudi Arabia. To achieve this, the company leverages its unique current strengths, expands into specialized high-value services (such as Special Economic Zones, Regional Headquarters, and intellectual property protection), and implements a comprehensive data-driven SEO strategy.¹

By focusing on delivering a seamless and comprehensive customer experience, supported by deep regulatory expertise and technological integration, Motaded can effectively differentiate itself in a competitive market. The company's commitment to helping foreign investors navigate the complex Saudi business landscape, while capitalizing on significant government incentives, will make it an indispensable partner in achieving the ambitious goals of Saudi Vision 2030.¹