Setting up a company in Saudi Arabia as a foreign business
Yes, a foreign business can usually register a company in Saudi Arabia. You register the investment with the Ministry of Investment (MISA), create the company with the Ministry of Commerce, then complete tax, labour and other registrations. Much depends on your business activity (what the company will do), since some activities are closed or limited for foreign investors.
Published by RAED ALI ALJOHANI COMPANY FOR Lawyership and Legal Consultations · Last updated
General information about Saudi law — not advice on your situation.
In a few lines, tell us what you plan to do in Saudi Arabia and where your company is registered.
At a glance
- Who this is for
- Foreign companies, founders and company groups planning a branch, a subsidiary or a regional headquarters in Saudi Arabia. Here about a person, not a company? If a family member is stopped or held in Saudi Arabia, see Urgent help or Foreigners facing a case, arrest or travel ban.
- Can it be handled from outside Saudi Arabia?
- Partly. Much of the preparation and many of the government applications can be done from abroad, through a power of attorney. Some steps usually need someone in Saudi Arabia in person.
- What usually decides the route
- What the company will do, whether that business activity is open to foreign ownership, and the structure you choose.
- What you usually need first
- A short description of your plan and where your company is registered now. No documents yet.
- First step with us
- Send us a short outline (a few lines about your plan) by WhatsApp, phone or email.
- Working languages
- Arabic and English
Common situations we help with
We help foreign businesses set up a company in Saudi Arabia, acting as your counsel and coordinating trusted licensed partners for the registration filings. Put simply, we are your law firm, and licensed partner offices handle some of the government applications. Start with the page closest to your question.
- Decide: choosing a structure
Which company structure fits your plan in Saudi Arabia?
A branch is part of your foreign company, while a subsidiary is a separate Saudi company that is responsible for its own debts and obligations. Our comparison also covers the regional headquarters option. It looks at control, responsibility for debts and obligations, how you could close the company or sell your share, and later disputes.
Branch, subsidiary or regional headquarters: choosing a structure in Saudi Arabia - Act: working from abroad
What can be done remotely when setting up in Saudi Arabia?
Much of the preparation can be done in your own country, using a power of attorney and documents certified there. Our guide explains who signs what, and where.
Setting up a Saudi company from abroad: what can be done remotely
How do you register a company in Saudi Arabia, step by step?
Registering a company in Saudi Arabia usually takes six stages. You choose the structure, certify the documents in your country, register the investment and create the company. Then you complete the later registrations, keep them up to date and plan how you might close or sell. According to the Ministry of Investment’s frequently asked questions page, you can apply for investment registration online, and you can get it before the company itself is created. The work does not end when the Ministry of Commerce registers the company. That is only stage 3.
Choose the structure. First check that your business activity is open to foreign investors. Then decide between a branch, a Saudi subsidiary and a regional headquarters. Where a lawyer helps: three questions to answer before you choose. Who controls the company? What happens if the owners disagree? How could you close it or sell your share?
Prepare and certify the documents in your country. Sign the company documents and the power of attorney in the country where your company is registered. Then have them certified there, so that Saudi authorities can accept them as genuine. Where a lawyer helps: checking your document list against what the Saudi authorities will ask for.
Register the investment, then create the company. You register the investment with the Ministry of Investment (MISA). This investment registration replaced the foreign-investment licence in 2025. You then create the company with the Ministry of Commerce. This gives the company a commercial registration (CR): its entry in the official business register, much like a company registration certificate in other countries. Where a lawyer helps: checking the articles of association (the company’s founding document) and the trade name (its registered name) before they are submitted. See how foreign investment registration works now.
Complete the registrations that come after the CR. These usually include registering for tax and zakat with the Zakat, Tax and Customs Authority (ZATCA). Zakat is a charge similar to a tax. Whether a company pays zakat, income tax or both depends on who owns it, and we check this for your structure. The company registers its employees for social insurance with the General Organization for Social Insurance (GOSI). It registers on Qiwa, the online platform of the Ministry of Human Resources and Social Development (the labour ministry), for work contracts and work permits. It also needs a National Address: its official address record with Saudi Post. Some business activities need other registrations too. Where a lawyer helps: checking what your business activity needs before you start doing business or hiring staff.
Keep registrations up to date and plan any changes. All registrations must be kept up to date. Any change of owners, business activities or managers needs its own application. Where a lawyer helps: preparing a change before anyone signs.
Plan early how you would close the company or sell your share. Closing a company means cancelling its registrations and paying what it owes to its employees and creditors (the people and companies it owes money to). Where a lawyer helps: listing what must be cancelled and paid before the closure starts.
Can you set up a company without travelling to Saudi Arabia?
Partly. Much of the preparation and many of the government applications can usually be done from your own country. Your company signs a power of attorney there and has its documents certified there. Some steps usually need someone in Saudi Arabia in person. We tell you which steps apply to you before you plan a trip.
A power of attorney (wakala in Arabic) is a signed document that lets someone, such as a lawyer, act for you. If you sign it abroad, it usually has to be certified before a Saudi authority will accept it.
This is the usual order when you work from abroad:
- A person who can sign for your company, such as a director or legal representative, signs the power of attorney in your country. This is usually done in front of a notary (an official who confirms signatures).
- You then have that document and the company documents certified in your country.
- If a Saudi authority needs a certified Arabic translation, we tell you whether to have it done in your country or in Saudi Arabia.
Depending on the receiving body, documents from abroad are legalised by apostille or through a Saudi mission. This means the Saudi office that will receive your document decides what it accepts. That is either an apostille from your country or certification through a Saudi embassy or consulate. Some Saudi bodies still describe embassy authentication in their own guides, so before you pay for any certification, we confirm what the receiving authority accepts.
For more detail, see setting up a Saudi company from abroad and power of attorney for Saudi Arabia, signed abroad. Your country matters too, so check whether your country uses an apostille or legalisation.
What are the main ways a foreign business can set up in Saudi Arabia?
There are usually four: a branch of your company, a Saudi subsidiary, a regional headquarters, or a Saudi distributor or agent instead of your own company. The right one depends on your business activity and your plans.
| Option | What it is | Usually suits | More detail |
|---|---|---|---|
| Branch office of your company | Your foreign company, registered to do business in Saudi Arabia. No separate Saudi company is created. | Doing business in Saudi Arabia in your own company’s name. Your foreign company stays responsible for the branch’s debts and obligations. | Choosing a structure |
| Saudi subsidiary, for example a limited liability company (LLC) or a simplified joint-stock company (a newer type of company with shares) | A separate Saudi company owned by your company, alone or with partners. Some business activities limit foreign ownership. It is responsible for its own debts and obligations. | Staying for the long term, hiring staff and signing contracts in Saudi Arabia. | Choosing a structure |
| Regional headquarters | A company group’s base for the region, under the Ministry of Investment’s regional headquarters (RHQ) programme. | International company groups that run their business in several countries from a base in Saudi Arabia. The ministry decides who qualifies. | Choosing a structure |
| A Saudi distributor or agent, with no company of your own | A Saudi business sells your products or services under a contract with you. | Testing the Saudi market before you set up a company. | Before you sign: how a Saudi distributor or agent agreement can end |
This is a general comparison. The right option for your company depends on its own facts.
What should you prepare before contacting a Saudi lawyer?
A few facts are enough for a first message. Have them ready, but please don’t send documents until we agree to work with you.
- What the company will do in Saudi Arabia, in a few lines.
- Where your company is registered now.
- Who will own the Saudi company, and who will manage it.
- Whether you already have a Saudi customer, partner or distributor.
- Roughly when you hope to start (for example, “early next year”).
How we help with company formation
We act as your counsel and coordinate trusted licensed partners for the registration filings. In other words, we are your law firm from start to finish, and licensed partner offices submit some of the government applications. You deal with the firm at every stage.
We look at a new company with later disputes in mind. That means asking who controls it, who signs for it, what happens if the owners disagree, and how you could close it or sell your share.
It starts with a short outline from you. We tell you whether we can help, what we need and how fees are agreed. We then put in writing what we will do and what it will cost. Work starts only after an engagement letter, the written agreement between you and the firm, is signed. Much of the work can usually be done remotely. You sign and certify documents in your country, and we coordinate the applications in Saudi Arabia.
Payment is arranged directly with the firm, never on this site.
Frequently asked questions
Can a foreigner own all of a company in Saudi Arabia?
Often, yes, when the owner is a foreign company. Many business activities are open to full foreign ownership. Some are restricted or closed to foreign investors, and some need extra approvals. Investing as a private person, not through a company, is a separate question. The Ministry of Investment explains who can register, and we can check how this applies to you. See how to check whether your business activity is open.
Does a foreign company need a Saudi partner or sponsor?
Not usually, if the business activity is open to full foreign ownership. People often use “sponsor” to mean a Saudi person or company named as a partner in the business. Some business activities are restricted or need extra approvals, so the answer depends on what the company will do. The Ministry of Investment’s frequently asked questions page explains the current position.
Do you still need a “MISA licence”, or is it registration now?
It is registration now. “MISA licence” is the common name for the foreign-investment licence used before 2025. Today, foreign investors register their investment with the Ministry of Investment instead. Our guide to “MISA licence” and investment registration explains what the old term means now.
Branch or Saudi subsidiary: what is the difference?
A branch is part of your foreign company, so your company stays responsible for it. A subsidiary is a separate Saudi company. This changes who is liable (legally responsible for debts and obligations), who signs contracts, and how you could close it or sell your share later. Our page on choosing a structure compares them side by side.
How much does it cost to set up a company in Saudi Arabia?
There is no single figure. The cost depends on: the structure; the business activity and any licences it needs; your office or other business space; certifying documents in your country; and advisers’ fees. Government fees change, so we don’t list them here. The official pages under Official sources below are the place to check them, and we can confirm what applies to your plan. Our own fees are agreed in writing before any work starts.
How long does it take to register a company in Saudi Arabia?
It varies. Three things usually matter most: document certification in your country, any extra approvals the business activity needs, and whether the first application is complete and correct. We don’t publish a standard timeline. Once we know your structure, we explain what will affect the timing.
Do you need a lawyer or a business setup consultant in Saudi Arabia?
You need a licensed lawyer if you want legal advice. Either a consultant or a law firm can prepare the applications and track their progress. A licensed Saudi law firm can also advise on the structure, check the documents and act for you in a later dispute.
Official sources
This page draws on 3 official sources. Each line shows who publishes it, its language and, where recorded, the date we last checked it.
- Ministry of Investment (MISA) · Frequently asked questions (in English) · Pending verification
- Ministry of Investment (MISA) · Investor Guide, 13th edition (PDF) (in English) · Pending verification
- Ministry of Commerce · Ministry of Commerce Pending verification
General information about Saudi law, not advice on your situation. Contacting us does not create a lawyer–client relationship until an engagement letter is signed.