Company Formation, Registration & Launch in Saudi Arabia
We start with an in-depth consultation to fully understand your business vision, objectives, and operational needs. This allows us to design a customized setup strategy tailored to your goals.
From there, we take care of the entire legal and administrative process — including obtaining your MISA (Ministry of Investment Saudi Arabia) license, securing your commercial registration (CR), and ensuring every step complies with the Kingdom’s laws and regulations.
Our team prepares, reviews, and submits all necessary documentation on your behalf, coordinating with relevant authorities to guarantee smooth approvals. We ensure that your foundational corporate structure, legal framework, and operational setup are ready for a successful market entry.
With our end-to-end guidance, you can focus on your core business while we handle the complexities of company formation in Saudi Arabia — turning your vision into a fully compliant, operational entity.
Process of setting up a company in Saudi Arabia
Identify Document Requirements
The first step is to identify all necessary documents required for company formation based on the chosen company structure, business activity, and foreign ownership percentage. This may include corporate documents of the parent company, identification documents of shareholders, proof of address, and other official certificates. Ensuring these documents meet Saudi legal and regulatory standards from the outset will avoid delays later in the process.
Determine ISIC4 Business Activity
The International Standard Industrial Classification (ISIC4) is used by Saudi authorities to categorize business activities. Determining the correct ISIC4 code is crucial because it directly impacts on the licensing requirements, allowed activities, and relevant authorities involved. An accurate classification will also ensure that the company is in full compliance with MISA regulations and sector-specific rules.
Define Saudization Quota
Saudization, also known as the Nitaqat program, mandates that a certain percentage of employees in the company must be Saudi nationals. The required percentage varies depending on the size of the company, industry sector, and activity type. Defining the Saudization quota early ensures proper workforce planning and avoids penalties or restrictions in the future.
Draft Power of Attorney (POA)
If the company’s shareholders or decision-makers are outside Saudi Arabia, a Power of Attorney will be needed to authorize a local representative to complete formalities on their behalf. The POA must be drafted according to Saudi legal requirements, notarized, and attested by the Saudi embassy in the issuing country.
Collect Required Notarized & Attested Documents
All necessary documents — including the Memorandum of Association (MOA), Commercial Registration (CR) from the parent company, audited financial statements, and POA — must be notarized in the home country and attested by the Saudi embassy. These documents serve as the legal foundation for the company formation process in Saudi Arabia.
Submit Name Reservation
Through the Ministry of Commerce’s online portal, a company must reserve its proposed name to ensure it is unique and follows Saudi naming rules. The name should reflect the company’s activities and avoid banned words. Once approved, the reservation gives the company exclusive rights to use the name during registration. In Saudi Arabia, names can now be reserved in both Arabic and English.
MISA License Application
The Ministry of Investment of Saudi Arabia (MISA) issues licenses that allow foreign investors to operate in the Kingdom. This step involves submitting the required forms,
documents, and details of the company’s intended activities. Approval of the MISA license is a key milestone that enables further steps in the formation process.
Finalize Articles of Association (AOA)
The Articles of Association define the internal rules, ownership structure, management responsibilities, and operational guidelines for the company. Drafting the AOA must be done in compliance with Saudi company law, and it must reflect the shareholders’ agreed terms. Once finalized, it becomes a legally binding document for the company’s operations.
AOA Publishing and Approval
After finalization, the AOA must be published via the Ministry of Commerce portal for official review. The approval process ensures that the document meets all regulatory and legal requirements before the company can be registered.
Commercial Registration (CR) Issued
Upon successful completion of all prior steps, the Ministry of Commerce issues the Commercial Registration certificate. This document officially establishes the company as a legal entity in Saudi Arabia, enabling it to open bank accounts, sign contracts, and commence operations.
Why Saudi Arabia?
Saudi Arabia is at the heart of the Middle East’s economic transformation. With its ambitious Vision 2030 plan, the Kingdom is opening up unprecedented opportunities for investors, entrepreneurs, and global corporations. Strategically located at the crossroads of Asia, Europe, and Africa, Saudi Arabia offers a thriving business environment supported by world-class infrastructure and a rapidly diversifying economy.
Key Benefits of Setting Up a Company in Saudi Arabia
Strategic Location & Global Connectivity
– Direct access to major international markets across three continents.
– Well-connected ports, airports, and logistics hubs supporting global trade.
Strong & Diversified Economy
– The largest economy in the Middle East and North Africa (MENA) region.
– Growing non-oil sectors including tourism, technology, renewable energy, logistics, and manufacturing.
Government Support & Incentives
– 100% foreign ownership allowed in many sectors.
– Investment-friendly policies, tax benefits, and funding opportunities from government initiatives.
World-Class Infrastructure
– Modern industrial zones, free economic zones, and advanced telecommunications.
– Mega projects like NEOM, Red Sea Project, and Qiddiya creating new business landscapes.
Growing Consumer Market
– A young, tech-savvy population with high purchasing power.
– Expanding demand for innovative products and services.
Ease of Doing Business Improvements
– Streamlined licensing and registration processes through MISA.
– Transparent regulatory framework aligning with global standards.
Business Registration & Legal Compliance
As part of your company formation in Saudi Arabia, we manage critical registrations with the Ministry of Labor (MoL), GOSI, and ZATCA. We also initiate the General Manager’s visa process and national address requirements to ensure smooth compliance.
- MOL registration
- National Address (SPL) registration
- GOSI registration
- ZATCA & VAT registration
- GM visa application
Requirements for Expanding Your Company to Saudi Arabia
Establishing a foreign company in Saudi Arabia requires compliance with specific legal, operational, and financial criteria. These requirements are designed to ensure that your business is credible, compliant, and well-positioned for a successful entry into the Saudi market.
Attested & Notarized Legal Documents
Companies must submit their Commercial Registration (CR), Memorandum of Association (MoA), and audited financial statements, all duly notarized and attested by the Ministry of Foreign Affairs and the Saudi Embassy in the company’s country of origin. These documents serve to confirm the company’s legal status and its eligibility to operate within the Kingdom’s regulatory framework.
Minimum Operating History
Applicants must demonstrate that their business has been operational for a minimum of 1 to 2 years in its home country. This is validated through official commercial records and registrations, establishing a credible and consistent track record in their respective industry or field of operation.
Proven Financial Stability
Companies are required to submit audited financial statements covering the previous 1 to 2 years. These documents must reflect the business’s financial stability, its capacity for expansion, and its ability to meet all legal, operational, and regulatory obligations within Saudi Arabia.
Full Activation & Business Launch in KSA
Final phase to ensure your company is fully operational. We activate portals, complete health checks, and open the company’s bank account. Business Setup in Saudi Arabia is done.
- GM visit & border number collection
- KSA work permit & Iqama issuance
- GM medical checkup and health insurance
- MOL activation
- Chamber of Commerce reactivation
- Absher portal registration
- Qiwa portal registration
- Muqeem portal registration
- Mudad portal registration
- Bank account registration
Premium Residency in Saudi Arabia
The Kingdom of Saudi Arabia’s Premium Residency Program is a groundbreaking initiative designed to attract exceptional global talent, visionary investors, entrepreneurs, and property owners. Offering a pathway to live, work, and invest in Saudi Arabia without many of the traditional restrictions faced by expatriates, the program provides unmatched privileges such as visa-free entry and exit, business ownership rights, real estate acquisition, and exemptions from certain government fees and requirements.
Whether you are a business leader, innovator, cultural icon, or investor, Premium Residency opens the door to long-term opportunities in one of the fastest-growing economies in the world — empowering you and your family to build your future in the heart of the Middle East.
Frequently Asked Questions (FAQs)
Find quick answers to the most commonly asked questions about our services, policies, and support. If you need more help, feel free to contact us.
Can my KSA entity have 100% foreign ownership?
Yes. 100% foreign ownership is allowed by obtaining the appropriate license from the Ministry of Investment of Saudi Arabia (MISA). For startups, this is typically the Entrepreneurship License.
What information is required to set up a KSA entity?
For startup entities, the following documents are typically required for obtaining the entrepreneurship license:
– Startup pitch deck
– Startup brief
– Letter of intent
– Endorsement letter
The information required for registration depends on the shareholders:
– If the shareholder is a foreign company: constitutional documents such as the commercial license, Memorandum of association, and a power of attorney are required.
– If the shareholders are foreign individuals or a combination of foreign and local individuals: standard KYC documents such as passport copies and residency IDs are required.
Can I obtain residency through my KSA entity?
Yes. The appointed General Manager (GM) of the company can obtain residency. After the company is registered, the company can issue visas and secure residency and work permits for its foreign employees.
What are the benefits of establishing a company in KSA?
- Access to the largest economy in the GCC and one of the largest globally
- Strategic location as a hub for the GCC market
- Proximity to all GCC countries via land borders
- Access to government incentives and support
- Participation in Saudi Arabia’s Vision 2030 and the country’s ongoing tech transformation
- Availability of a young, tech-savvy workforce
- Opportunity to hire Saudi nationals for localization and market insight
What are the ongoing obligations for a KSA entity?
KSA companies must comply with the following regular obligations:
- Renewal of MISA license
- Renewal of Commercial Registration
- Renewal of National Address
- Submission of annual financial statements (audited, if applicable)
- Monthly tax filings
- Monthly social insurance and unemployment contributions for Saudi employees
- Occupational hazard insurance for all employees
- Health insurance for all employees
- Residency permits, medical tests, work permits, and entry/exit visas for foreign employees
- Management and proper use of systems such as GOSI, Absher, Qiwa, Mudad, and Muqeem
*Additional obligations may apply depending on the industry or sector.*
What are the tax requirements for a KSA entity?
- 20% income tax on net income for foreign or partially foreign-owned companies (payable to ZATCA – Zakat, Tax, and Customs Authority)
- 15% Value Added Tax (VAT) applicable to most goods and services
- Withholding tax of 5% to 20% for non-residents receiving income from within KSA
- No personal income tax for individuals
*It is strongly advised to consult a tax advisor for the latest regulations and tax compliance guidance.*
Can I establish a sole proprietorship in KSA?
No. Companies must be formed as Limited Liability Companies (LLCs), which is the most common legal structure in KSA.
Can “Setup in Saudi” assist with obtaining a MISA license?
Yes. We assist clients in obtaining various types of MISA licenses.
For startups, we recommend securing an endorsement letter through accredited accelerators, incubators, or investors within Saudi Arabia to reduce setup costs.
What is an Apostille?
An Apostille is an official government-issued certification that authenticates a document for international use under the Hague Convention.
If either the origin or destination country is not a member of the Hague Convention, documents must undergo a longer attestation process:
- Certification from the Ministry of Foreign Affairs in the country of origin
- Legalization by the embassy of the destination country in the origin country
- Final certification by the Ministry of Foreign Affairs in the destination country
*Countries like the Cayman Islands, the US, and Saudi Arabia are part of the Hague Convention.*
What is an endorsement letter?
An endorsement letter is a required document for applying for the Entrepreneurship License. It is issued by an authorized entity (e.g., accelerator, incubator, angel investor group, university, or VC firm) and addressed to MISA, supporting the startup’s application.
**Important Notes:**
- MISA does not publish a list of authorized entities
- You should confirm with any startup program, investor, or accelerator whether they are authorized to issue endorsement letters
- These entities must conduct due diligence to verify that the applicant is a legitimate startup, not a traditional company seeking reduced fees under the entrepreneurship license
