Should You Set Up an SJSC or a Regional Headquarters?
A limited liability company (LLC) or a branch of your existing company covers most foreign founders. Two other structures are worth knowing before you decide. A simplified joint stock company (SJSC) suits ventures that plan to bring in investors. A Regional Headquarters (RHQ) is for multinationals that run their Middle East and North Africa operations from Saudi Arabia.
| Structure |
Best for |
What to know |
| Simplified Joint Stock Company (SJSC) |
Startups and ventures that expect to raise investment |
Shareholders set much of the company's structure and procedures in its articles of association. It can be formed by a single shareholder, and it is a separate legal entity like an LLC. |
| Regional Headquarters (RHQ) |
Multinationals managing subsidiaries across the Middle East and North Africa |
Set up as a company or a registered branch. It cannot earn revenue outside its licensed RHQ activities and must employ at least 15 full-time staff within its first year. Qualifying RHQs get 0% income tax on eligible income and 0% withholding tax on certain payments for 30 years, renewable. |
Still comparing locations? We also handle company formation in Bahrain, so we can help you decide whether to start in one market or both.
MISA Licence or Investment Registration? What Changed in 2025
The old "MISA licence" has been replaced by investment registration. Saudi Arabia's Investment Law, which replaced the Foreign Investment Law in 2025, requires a foreign investor to register with the Ministry of Investment before investing. The Ministry of Commerce then incorporates a foreign-owned company only against a valid investment registration.
Many people and platforms still call it the MISA licence, so do not be confused if you see both terms. What matters for a foreign founder:
How investment registration works
- You register specific business activities, coded under the ISIC4 system. Each activity is classed as "available" or "restricted" for foreign investment.
- When you file the incorporation, the Ministry of Commerce expects your investment registration to have at least 30 days of validity left.
- The registration has to be updated every year, and the annual update requires the parent company's commercial registration to still be valid in its home country.
Activities that carry extra conditions
- Trading (commercial) activities: either a Saudi partner with a minimum shareholding plus a minimum capital, or 100% foreign ownership with a higher minimum capital, a presence in at least three regional or global markets, and investment, training and localisation commitments.
- Engineering consulting, 100% foreign: a presence in four countries and at least ten years of experience.
- Professional activities with a Saudi partner: both partners must be licensed in the same field.
- Legal services, 100% foreign: an approval letter from the Ministry of Justice.
- Communications activities: a minimum Saudi shareholding.
These conditions come from the Ministry of Investment Investor Guide (13th edition, March 2026). They change from time to time, so we check your activity codes against the current rules before you apply.
What Company Formation Consultants in Saudi Arabia Handle for You
A business setup company in Saudi Arabia runs the government side of your launch for you. That means registering your investment with the Ministry of Investment (MISA), incorporating the company and getting its Commercial Registration (CR) from the Ministry of Commerce, then activating it on the tax, labour and residency platforms so you can invoice, bank and hire.
Fahdan brings 17+ years of company formation experience to this work. Beyond the government filings themselves, this is what you get from us:
Before anything is filed
- A dedicated account manager as your single point of contact
- A document checklist for your chosen structure, so you know exactly what to attest and send from your home country
- Your business activities selected and checked against the current MISA rules
- Support with your Articles of Association and shareholder agreement
Once your company is registered
- Your CR and Articles of Association issued in Arabic and English
- Corporate bank account, General Manager visa and residency permit (Iqama), in our Professional and Enterprise packages
- Help with your first Saudi hire in the Enterprise package: CVs of Saudi candidates, a ministry-approved employment contract and registration for Saudization points
Compare our KSA company formation packages to see exactly what each one covers. Once you are trading, our corporate PRO services in Saudi Arabia keep your MISA registration and CR current and your Chamber of Commerce, GOSI and Saudization certificates up to date.
Prefer to call? Reach our team on +973 3360 2509 or email info@fahdan.com.
