Foreign Company Registration in Saudi Arabia

Saudi Arabia does not operate a UAE-style free zone system for company incorporation. All standard commercial entities are registered under the Kingdom’s national regulatory framework and issued a Commercial Registration (CR).

In Saudi Arabia, a “mainland” company refers to:

• A business incorporated under Saudi commercial law
• Registered with the Ministry of Commerce
• Issued a Commercial Registration (CR)
• Authorized to operate anywhere in the Kingdom
• Allowed to contract with private and public sector entities (subject to activity approvals)

• Limited liability Company (LLC): A flexible business structure that offers limited personal liability to its owners (members) while allowing for simplified management and taxation, combining elements of a corporation and a partnership.
• Joint Stock Company: A business structure based on share ownership, enabling multiple investors to contribute capital and participate in profits while limiting personal liability.
• Branch of Foreign Company: An extension of a parent company located in a different country, allowing it to conduct business and operations in the host country.

• Trading & Contracting License – It authorizes a company to engage in trading activities (buying, selling, distributing, importing, and exporting) and contracting services (construction, maintenance, installation, etc.) within a designated area.
• Industrial License – It is formal permission from a governmental authority, enabling individuals or entities to participate in specific industrial activities within a defined geographic area.
• Travel & Tourism License – A government-issued permit allows individuals or entities to operate responsibly within the travel and tourism industry, ensuring compliance with industry standards and safety regulations.

1. Confirm business activity and eligibility.
2. Choose legal structure (LLC, Branch, or SJSC).
3. Apply for a MISA investment license (if required).
4. Establish the company under the investment route.
5. Obtain Commercial Registration (CR).
6. Open HRSD establishment file.
7. Register with ZATCA (tax and VAT if applicable).
8. Register with GOSI for employer compliance.
9. Open a corporate bank account and set up accounting.

This is the complete mainland incorporation pathway for foreign investors.

Your selected business activity determines:

• Whether foreign ownership is permitted
• Whether a MISA investment license is required
• Whether additional sector regulator approvals are needed
• Compliance obligations
• Visa eligibility
• Saudization requirements

Saudi mainland registration requires precise activity classification. Errors at this stage often cause delays later in CR issuance or regulatory onboarding.

Certain regulated sectors (finance, healthcare, telecom, education, insurance, etc.) require approvals beyond standard commercial registration.

Foreign investors registering in Saudi mainland typically choose one of the following:

LLC (Limited Liability Company)

• Most common structure for foreign investors
• Separate legal entity
• Shareholder liability limited to capital contribution
• Suitable for trading, services, consulting, industrial operations

Branch of a Foreign Company

• Extension of the parent company
• No separate legal personality
• Parent company assumes full liability
• Often used for project-based or government contracts

Simplified Joint Stock Company (SJSC)

• Flexible governance model
• Suitable for scalable ventures
• Attractive for structured shareholding

The correct structure depends on liability preference, operational strategy, and long-term plans.

Most foreign-owned mainland companies require an investment license issued by the Ministry of Investment (MISA). The investment license authorizes foreign ownership within Saudi Arabia’s mainland framework.

Typical Documents Required:

• Parent company registration documents
• Memorandum and Articles of Association
• Board resolution approving Saudi incorporation
• Shareholder and director identification
• Financial statements (where applicable)
• Legalized and translated foreign documents

Proper preparation of foreign corporate documents significantly reduces delays.

After receiving the MISA license (if required), the company is formally incorporated under the Ministry of Commerce system through the Saudi Business Center. This stage includes:

• Drafting and notarizing incorporation documents
• Confirming share capital
• Registering the company’s legal details
• Entering activity classifications
• Issuing official incorporation documentation

This is still part of the mainland regulatory system.

The Commercial Registration (CR) is the official mainland business registration certificate. The CR allows your company to:

• Conduct commercial operations across Saudi Arabia
• Sign contracts
• Open bank accounts
• Register for tax
• Hire employees
• Access government portals

Critical Items to Verify on the CR

• Correct business activities
• Accurate shareholder details
• Manager information
• Registered address
• Proper legal name (Arabic and English)

The CR is central to all future compliance steps.

If your mainland company intends to hire employees, you must open an establishment file with the Ministry of Human Resources and Social Development (HRSD). This file allows you to:

• Apply for work visas
• Hire local and foreign staff
• Manage labor compliance
• Monitor Saudization (Nitaqat) obligations

Without this step, the company cannot legally employ staff.

All mainland companies must complete registration with ZATCA. Depending on ownership and activity, this may include:

• Corporate income tax registration (foreign-owned entities)
• Zakat registration (where applicable)
• VAT registration (if turnover thresholds apply)

VAT registration provides a VAT number once approved. Tax compliance is mandatory from the beginning of operations.

Mainland employers must:

• Register with GOSI (General Organization for Social Insurance)
• Enroll employees
• Implement compliant payroll systems

Failure to complete this step can result in penalties.

Mainland company registration costs vary based on:

• Type of investment license
• Legal structure
• Activity category
• Office requirements
• Translation and document legalization
• Employee onboarding
• Ongoing compliance obligations

Timeline Influencers

• Regulated activity approvals
• Document readiness and legalization
• Accuracy of application submissions
• Banking compliance checks

While certain individual service steps have official processing durations, total setup time depends on case complexity.

Saudi Arabia does not operate a traditional UAE-style free zone system for standard company registration. Most commercial entities are incorporated under the mainland regulatory framework.

Foreign company registration in Saudi Arabia mainland is a structured process under a unified national regulatory framework.

The key to a smooth registration is:

• Correct activity classification
• Complete and properly legalized foreign documents
• Proper sequencing of MISA, CR, HRSD, and ZATCA steps
• Early tax and labor compliance planning

Mainland incorporation provides foreign investors with full operational access across Saudi Arabia, without geographic restrictions, and allows engagement with both private and public sector entities (subject to activity approvals).

If you are planning to establish a foreign-owned mainland company in Saudi Arabia, contact our team today for a tailored consultation and a clear, step-by-step roadmap designed specifically for your business activity and investment structure.

Yes. A mainland company issued a Commercial Registration can operate throughout the Kingdom, subject to its licensed activities and regulatory approvals.

The MISA license authorizes foreign investment.
 The Commercial Registration (CR) legally registers the company under Saudi commercial law. Both are typically required for foreign-owned mainland companies.

In many sectors, foreign ownership is permitted subject to investment licensing and regulatory compliance. Activity restrictions may apply in certain industries.