How to Set Up a Company in Saudi Arabia as a Foreign Company

Setting up a company in Saudi Arabia as a foreign business is less about one big approval and more about a chain of registrations, each depending on the one before it. Most delays come from getting that order wrong, or from documents prepared for one step that do not fit the next. This guide sets out the usual sequence, what each step is for, and where it tends to slow down.

A note before you start: the rules changed in 2025

Much of the material online still describes the old "MISA licence". Under the Investment Law that took effect in February 2025, foreign investors no longer obtain a MISA investment licence. They register with the Ministry of Investment (MISA) before starting investment activity, and that registration must be kept up to date every year. The new Commercial Registration Law, in force since April 2025, also removed the expiry date of the commercial registration and replaced renewal with an annual confirmation of the company's data.

Requirements, documents and fees can vary by activity, legal form and region, and they continue to evolve. Treat this guide as a map, and confirm current requirements with the competent authority or a licensed provider before you file anything.

Step 1: Choose the entry model

Before any registration, decide what the Saudi presence actually needs to do. The main options include a limited liability company (LLC), a branch of the foreign company, a joint stock company, a joint venture with a Saudi partner, or, for groups considering a regional base, a regional headquarters. Each has different implications for liability, governance, tax and what activities can be carried out.

Check early whether your intended activity appears on the list of activities restricted for foreign investment, and whether a sector regulator must approve it separately. Choosing the model after preparing documents is one of the most common causes of rework. Our guide to Saudi market entry options compares the models in more detail, and our regional headquarters guide covers that specific route.

Step 2: Prepare and legalise parent-company documents

Expect to provide the parent company's constitutional documents, commercial registration, board resolution approving the investment, financial statements and identification for shareholders and the proposed manager. Foreign documents generally need to be attested or apostilled, depending on the issuing country, and translated into Arabic where required. Starting this early saves weeks, because it depends on authorities outside Saudi Arabia.

Step 3: Register the investment with MISA

Investment registration is submitted through MISA's online services. The registration records the investor, ownership structure, business scope and related information, and can cover activities across more than one sector. Investors are expected to update their registration information annually.

Step 4: Articles of association and commercial registration

With the investment registered, the company is formed with the Ministry of Commerce. This involves reserving a trade name, finalising the articles of association in line with the Companies Law (in force since January 2023), and obtaining the commercial registration (CR). The CR number becomes the company's unified number across government systems, so many later steps cannot start until it is issued.

The articles of association deserve careful drafting by a licensed legal provider: management powers, profit distribution, transfer of shares and decision thresholds are much harder to change later.

Step 5: Chamber of Commerce

Commercial entities are linked to the local Chamber of Commerce, which is used for certain certifications and business services. Confirm current membership terms with the chamber at the time you register.

Step 6: National address and municipal licence

• National address: registered with Saudi Post (SPL) and used by government systems and banks.
• Municipal licence (Balady): the Balady platform issues the commercial licence for the premises, together with a Civil Defense safety permit for the approved activities. The premises must suit the activities on your CR; higher-risk premises may require inspection.

Securing suitable premises late is a frequent source of delay, because the licence is tied to a specific, compliant location.

Step 7: Zakat, tax and VAT with ZATCA

A new company registers with the Zakat, Tax and Customs Authority (ZATCA) on its creation, using its CR and articles of association. Depending on ownership, the company may be subject to zakat, corporate income tax or both. VAT registration is mandatory once annual taxable supplies exceed the threshold set by ZATCA (currently published as SAR 375,000), with voluntary registration available below it. The tax position of a foreign-owned company should be reviewed by a licensed tax adviser.

Step 8: Workforce, GOSI, Qiwa and Muqeem

• GOSI: registration with the General Organization for Social Insurance before employees are added.
• Qiwa: the Ministry of Human Resources and Social Development platform for establishment files, employment contracts and work permits.
• Muqeem: the platform used to manage residency (iqama) and visa matters for expatriate staff.

Hiring plans should account for Saudization requirements from the start. See our guide to Saudization and Nitaqat for foreign companies, and our workforce coordination support.

Step 9: Corporate bank account

Banks apply their own know-your-customer and compliance reviews, typically requiring the CR, articles of association, national address and identification for the authorised signatories, who may need to be resident. Requirements differ between banks, so it helps to compare them before choosing. See banking coordination.

Where delays usually come from

• Entry model chosen after documents were already prepared
• Foreign documents not legalised or translated as required
• Activity descriptions that differ between the MISA registration, CR and municipal licence
• No compliant premises when the municipal licence is due
• No resident manager or signatory when the bank account and visas are needed
• Sector approvals discovered late

How TAQUDI helps

TAQUDI, owned and operated by ALDUR Holding, helps you assess the entry model, map the sequence, compare and shortlist licensed providers, and coordinate the steps and follow-up so each one is ready for the next. Regulated work, including legal drafting, tax advice and filings where required, is carried out by appropriately licensed providers. Learn more about our company setup and licensing coordination support.

Start with clarity

If you are planning a Saudi entity, a useful first step is the Saudi Entry Diagnostic: a structured review of your objectives, activity and current situation that clarifies the right model and the order of steps before you commit. You can also contact us to discuss your plans.

This guide is general information, not legal, tax or regulatory advice. Requirements change; confirm current rules with the competent authority or an appropriately licensed provider. · All guides