Service overview
Regional Headquarters License: The Practical Guide for International Companies
The Regional Headquarters (RHQ) License is granted by the Ministry of Investment of Saudi Arabia (MISA) to multinational companies establishing an entity in the Kingdom to manage their regional operations across the Middle East and North Africa region. The program was launched in February 2021 as part of Saudi Vision 2030, and entered full enforcement on 1 January 2024 when the license became a requirement for contracting with Saudi government entities.
Motaded Limited handles the complete RHQ setup process, from initial eligibility assessment through entity preparation and operational launch, following a defined methodology that ensures compliance with all Ministry of Investment and Zakat, Tax and Customs Authority requirements.
Core Benefits of the License
| Benefit | Details |
|---|---|
| 30-Year Tax Exemption | 0% corporate income tax on eligible income + 0% withholding tax on payments to non-residents |
| Saudization Exemption | 10-year full exemption from Saudization quotas |
| Premium Residency | Free Premium Residency for the top 3 executives and their families |
| Visas | 250 initial visas with no cap thereafter, exemption from professional visa limits |
| Government Contracting | Priority in government tenders above SAR 1 million |
| Family Support | Spousal work permits, dependent children visa age extended to 25 |
Mandatory Eligibility Requirements
The license is subject to substantive requirements that prove the entity is genuinely a multinational group exercising regional leadership from Riyadh:
▸ Geographic Scope: The parent company operates in at least two jurisdictions other than Saudi Arabia and the country of its main headquarters.
▸ Legal Form: A new limited liability company (LLC) or a foreign branch.
▸ Ownership: 100% foreign ownership is permitted.
▸ Activity: Generating commercial revenue in the Kingdom directly through the RHQ is prohibited.
▸ Employment: 15 full-time employees within 12 months, including 3 senior executives.
▸ Economic Substance: A genuine physical office, strategic meetings in the Kingdom, and a resident executive.
To review the differences between foreign entity types in the Kingdom and which is most suitable for various cases, see business setup services from Motaded.
RHQ Scope of Operations: 18 Countries
The headquarters in Riyadh manages the group's entities across a region officially defined by the Ministry of Investment, covering 18 countries:
▸ The six GCC states: Saudi Arabia, UAE, Kuwait, Bahrain, Oman, Qatar.
▸ Eastern Mediterranean: Yemen, Iraq, Jordan, Palestine, Lebanon, Syria.
▸ North Africa: Egypt, Libya, Tunisia, Algeria, Mauritania, Morocco.
Approved Activities
Mandatory Activities (11 activities, commence within 6 months)
Formulating and monitoring the regional strategy, coordinating strategic alignment, embedding products and services in the region, supporting acquisitions, mergers, and divestments, reviewing financial performance, strategic business planning, coordinating business branches, identifying new markets, monitoring regional markets and competitors, regional marketing plan, and operational and financial reporting.
Optional Activities (at least 3 from 14)
Sales and marketing support, human resources and personnel management, training, financial management and foreign exchange, compliance and internal control, accounting, legal, auditing, research and analysis, advisory, operations control, logistics and supply chain, international trading, and technical support.
Motaded's RHQ Setup Service Path
▸ Phase 1 — Eligibility Assessment: review of the international group's structure, verification of multinational status, and viability evaluation.
▸ Phase 2 — Entity Planning: selection of the legal form, articles of association drafting, and identification of the optimal 3 optional activities.
▸ Phase 3 — MISA Submission: complete documentation preparation, liaison with the RHQ Care team, and application follow-up until approval.
▸ Phase 4 — Post-License: commercial registration, bank account opening, ZATCA registration, and physical premises preparation.
After obtaining the license, Motaded handles the procedures associated with Premium Residency for the top 3 executives, coordinates with Zakat and Tax services to ensure benefit from the 30-year tax exemption, in addition to visa issuance services for employees and families.
Economic Substance Requirements (ESR)
The Zakat, Tax and Customs Authority published the Economic Substance rules on 16 February 2024 as a fundamental condition for benefiting from the tax exemption:
▸ Valid MISA license.
▸ Adequate physical premises in Saudi Arabia (owned or leased).
▸ Activity directed from Saudi Arabia (strategic board meetings held in the Kingdom).
▸ Adequate number of full-time employees.
▸ Adequate local operating expenditure.
▸ Compliance with Transfer Pricing Bylaws.
▸ Submission of an annual ESR report to ZATCA.
Why Motaded
▸ Documented expertise in foreign company setup in the Kingdom since 2017.
▸ Direct engagement with the Ministry of Investment and the RHQ Care team.
▸ Complete methodology covering both pre-license and post-license phases.
▸ Annual ESR compliance monitoring.
▸ Integration with Motaded's other services: Premium Residency, visas, Zakat and tax, accounting.
To begin the process, an in-depth consultation can be booked to assess RHQ viability for your group.
Service Snapshot
| Target Audience | Multinational companies operating in at least two MENA countries excluding Saudi Arabia |
| Service Duration | 3 to 4 weeks for MISA processing |
| Languages | Arabic and English |
| Service Channels | Advisory sessions, legal documentation support, and digital submissions to competent authorities |
Objectives
▸ Create a business-friendly environment for multinational corporations to manage regional operations effectively.
▸ Promote foreign investment through the unique incentive package, driving growth in the Middle East and North Africa region.
▸ Strengthen Saudi Arabia's position as a key hub for multinational companies' MENA operations.
Work Tracks
▸ Strategic Management and Direction: Overseeing business operations and decision-making across the Middle East and North Africa.
▸ Coordination of Regional Activities: Managing and aligning business strategies, financial reviews, acquisitions, and expansion efforts.
Steps to Obtain
1. Submit Application: Submit the application with documentation demonstrating the company's presence in at least two MENA countries (excluding Saudi Arabia) and meeting other eligibility requirements.
2. Review Process: The Ministry of Investment of Saudi Arabia (MISA) evaluates the company's eligibility and business plan.
3. License Issuance: Once approved, the client receives the RHQ License and begins regional operations in Saudi Arabia.
4. Post-License Procedures: Commercial registration, bank account opening, ZATCA registration, and physical premises preparation.
5. Compliance Follow-up: Monitoring fulfillment of first-year employment requirements and submission of the annual Economic Substance report.
Areas of Work
Mandatory Activities: Include strategic direction, financial management, regional acquisitions oversight, and regional market planning.
Optional Activities: Companies may engage in marketing, human resources, financial management, legal services, logistics, and other operational support as needed.
Extra Data
| Target Audience | Company owners, compliance and legal teams, local and international businesses |
| Internal Duration | Normally 5 to 15 business days for RHQ file preparation before submission |
| Cost | Pricing based on RHQ structure, compliance depth, and submission complexity |
| Payment Options | Bank transfer according to signed scope and commercial proposal |
Official References
▸ Ministry of Investment — misa.gov.sa: the program's regulatory authority.
▸ Invest Saudi Portal — catalyzesaudi.sa: official RHQ program details.
▸ Zakat, Tax and Customs Authority — zatca.gov.sa: RHQ tax rules.
▸ Ministry of Finance — mof.gov.sa: tax incentives announcement.
▸ Bureau of Experts at the Council of Ministers — laws.boe.gov.sa: Council of Ministers Resolution No. 366.
▸ Saudi Press Agency — spa.gov.sa.
Motaded Limited — Complete Methodology for RHQ Setup
motaded.com.sa | Commercial Registration 7009358164
Service snapshot
Target Audience
Service Duration
Language provided
Service Channels
Objectives
Work Tracks
Steps to Obtain
Areas of Work
Mandatory Activities: Include strategic direction, financial management, regional acquisitions oversight, and regional market planning.
Optional Activities: Companies may engage in marketing, human resources, financial management, legal services, logistics, and other operational support as needed.
Extra data
Beneficiary Group
Multinational companies with existing operations in at least two MENA countries (excluding Saudi Arabia).
Service Duration
The RHQ License application is typically processed within 3 to 4 weeks.
Provided Language
Services are available in both Arabic and English, making it convenient for global enterprises.
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FAQs
Frequently Asked Questions (FAQs)
- What is the Regional Headquarters License?
A license granted by the Ministry of Investment of Saudi Arabia to multinational companies for establishing an entity in the Kingdom to manage their operations across the Middle East and North Africa region. The license is a mandatory requirement for contracting with Saudi government entities since 1 January 2024, for contracts exceeding SAR 1 million.
- What are the eligibility requirements?
The parent company must be registered and operate in at least two jurisdictions other than Saudi Arabia and the country of its head office. The Saudi entity is registered as a limited liability company or a foreign branch, and cannot generate commercial revenue in the Kingdom.
- What benefits come with the RHQ License receive?
0% corporate income tax and 0% withholding tax for 30 years, 10-year Saudization exemption, free Premium Residency for the top 3 executives and their families, 250 initial visas with no cap thereafter, spousal work permits, and dependent children visa age extended to 25.
- How many employees must be hired?
15 full-time employees within 12 months of license grant, including 3 senior executives at CEO level or equivalent, residing in the Kingdom.
- How long does the setup take?
MISA license processing takes 3 to 4 weeks after document completion. Motaded's internal file preparation takes 5 to 15 business days before submission. Post-license procedures then begin (commercial registration, bank account, ZATCA registration, and physical premises setup).
- What activities does the RHQ perform?
11 mandatory activities including regional strategy formulation, financial performance review, and coordination between business branches, to commence within 6 months. In addition, at least 3 optional activities selected from 14 (accounting, HR, legal, and others), to commence within 12 months.
- Can the RHQ engage in direct sales?
No. The RHQ function is administrative and strategic only. Any commercial activity generating revenue in the Kingdom must be conducted through a separate branch or subsidiary with a commercial or service MISA license.
- What does Motaded's RHQ service include?
Motaded's service covers: initial eligibility assessment, business plan drafting, required documentation preparation, MISA portal submission, coordination with the RHQ Care team, post-license commercial registration, bank account opening, ZATCA registration, economic substance documentation, and ongoing annual compliance follow-up.
- Can an RHQ practice direct sales in 2026?
No, its function is sovereign administrative and strategic only; commercial branches must be opened for operational sales.
- What is the minimum number of employees in an RHQ for 2026?
15 full-time employees (minimum) in senior administrative roles within one year of establishment.
- Does the tax exemption include VAT?
Sovereign exemption covers Corporate Income Tax and Withholding Tax for 30 years, while VAT follows ZATCA standard regulations.
- How is the "Multinational" status of the parent company proven in 2026?
By submitting documented commercial records from at least two different countries.
- What is the penalty for not establishing an RHQ for contracting firms?
A violation of procedural integrity leading to exclusion from billion-dollar government tenders.
- Can an existing branch be converted into an RHQ in 2026?
Yes, with Ministry approval and adhering to the Guide to Amending the MISA Investment License.
- What is the advantage of Motaded's RHQ file management?
Ensuring procedural integrity, speed of linking with MISA, and absolute compliance with the Market Entry Strategy in KSA.
