The world knows how the Kingdom’s ambitious Vision 2030 program is transforming the Kingdom into a global business hub. It is the country’s blueprint for future development. With initiatives like non-complex regulations, 100% foreign ownership, and investments in non-oil sectors attracts foreign companies to tap into the Saudi market.
As more companies show interest in Saudi Arabia, the Kingdom’s GDP has grown by 70%, driven mainly by non-oil economic activities. If you’re looking to be part of this growth, this detailed guide is here to help. It provides you with all the steps you need for how to start a business in Saudi Arabia as a foreigner — from legal requirements to local regulations.
Let’s get started!
Steps to Start a Full Foreign Ownership Business Setup in KSA | Commercial Registration Saudi Arabia
Setting up a fully foreign-owned business in Saudi Arabia may seem challenging at first. But it is easier than you think—especially with the right roadmap. The following step-by-step guide will help investors meet legal requirements and establish their operations with confidence.
Step 1 – You Need to Obtain a MISA License
To establish a business in Saudi Arabia, you need a MISA License. Having this license in your pocket gives you the authority to legally operate in the KSA. The entire process usually takes up to either 30 or 3-5 working days, so it’s important for businesses to prepare ahead of time. To get the MISA, you’ll need to submit several key documents, such as:
- Comprehensive business plan with defined goals and operations
- Memorandum & Articles of Association outlining business structure
- Incorporation certificate from your home country
- Shareholding and capital structure details
- Manager/executive director details with residency proof
- Financial reports and identification documents of shareholders
Note: Ensure that all documents are attested by the Ministry of Foreign Affairs in your home country. It would be followed by legalization at the Saudi Embassy. An Apostille is required for Hague Convention countries.
Step 2 – Time to Select the Right Business Structure
Selecting the right business structure isn’t just a formality—it’s key to staying compliant and minimizing potential complications. Foreign investors have several options to select from, including;
- Limited Liability Company (LLC)
- Joint Stock Company (JSC)
- Technical and Scientific Services Office (TSSO)
- Subsidiary of a Foreign Company
- Regional Headquarters (RHQ)
Step 3 – Signing up Your Business with the Ministry of Commerce
Following the selection of an appropriate business structure, the next step is obtaining a Commercial Registration (CR) through the Ministry of Commerce and register with the Chamber of Commerce as well. It’s a vital part of the Articles of Association that shows what the company is about.
It outlines the company’s main activities and objectives. These documents are essential for legal compliance and transparency. They also help ensure the business meets foreign ownership laws, especially in restricted sectors.
Step 4 – Setting Up a Corporate Bank Account
Now you need to open a corporate bank account. It is for handling key financial tasks such as payroll and business expenses. You will need the following documents to open a bank account – Valid MISA License, Commercial Registration (CR), Shareholder Information and Identifications Documents.
Note:- It would be possible that banks may request further documentation to facilitate proper processing and meet regulatory standards
Step 5 – Complying with Legal Regulations
Investors must understand the key laws and regulations that govern foreign companies. Here are some essential legal points you should be aware of:
- Saudisation (Nitaqat): You’ll need to hire a set quota of Saudi nationals, based on your industry.
- Corporate Tax: 20% flat tax on corporate earnings.
- Labor Laws: Rules around employee benefits, working hours, and compensation must be followed.
- Value Added Tax (VAT): A 15% VAT is charged on most goods and services.
It is advised to foreign businesses to stay up to date with rules and regulations to set a solid foundation in the Kingdom.
Bringing All This Together
No doubt, starting a business in Saudi Arabia is exciting and brings endless opportunities. The new reforms under Vision 2030 make it easier for foreigners to enter the market. However, if your company feels overwhelmed by new laws, complex paperwork, and unfamiliar systems, you can consult with Connect Resources Saudi Arabia. We don’t just help you set up your business—we walk with you every step of the way.
