To establish a 100% foreign-owned company in Saudi Arabia, you must obtain a MISA License (previously SAGIA). There are nine subtypes, including:
Learn more about the license types.
The 20-Step Process to Set Up a Business in Saudi Arabia as a Foreigner
Stage 1: Foundations of the Legal Entity (Projected timeline: 1 month)
To legally establish your business in Saudi Arabia, you must first obtain a one-year license from the Ministry of Investment of Saudi Arabia (MISA). You must also reserve your company's name with the relevant authority, draft and notarize your Articles of Association (AoA), and obtain your Commercial Registration (CR) certificate which officially recognizes your company as a legal entity in Saudi Arabia. Finally, you must register with the Chamber of Commerce (CoC).
1. Obtain a MISA Investor License
2. Name Reservation
3. Draft Local Articles of Association (AoA)
Insight: The Articles of Association template is set up by law and companies are only able to adjust their general manager’s powers.
4. Commercial Registration (CR)
5. Chamber of Commerce (CoC) Registration
Stage 2: Authorization to Hire Staff (Projected timeline: 2 months)
After procuring a company seal you need to register with the Ministry of Labor and enroll in the General Organization for Social Insurance (GOSI) to be able to hire and manage staff in KSA. By registering your company’s physical location in KSA, it will be listed in the national database for legal correspondence. The next steps are securing a visa for a General Manager (GM) of your new entity, and registering with the General Authority of Zakat and Tax (GAZT) for tax compliance, including VAT.
6. Obtain a Company seal
7. Register with The Ministry of Labor
8. Register with the General Organization for Social Issuance (GOSI)
9. Register a National Address
10. Issue a GM Visa
11. Registration with the General Authority of Zakat and Tax (GAZT) and VAT Registration
Stage 3: Acquiring Residency and Opening a Bank Account (Projected timeline: 3 months)
To complete your business setup in Saudi Arabia, you must activate your CoC account, obtain health insurance for the GM, schedule the GM's medical check-up (the GM must visit KSA for this step), secure the GM's Iqama, register on the key portals such as Muqeem, Absher, Qiwa, and Mudad portal, and open a corporate bank account.
12. Activate the Chamber of Commerce (CoC) Account
13. Obtain Health Insurance
14. Get a Medical Check-up
15. Issuing the GM’s Iqama
16. Register with the Muqeem portal for streamlined visa and residency management
17. Register with the Absher portal for an array of e-government services
18. Register with the Qiwa portal for business services designed for SMEs
19. Register with the Mudad Portal to manage essential municipal services for your company
20. Open a Bank account
Be aware of other steps following up on your company setup
With the 20 steps above, your company is set up and legally registered. However, you still need to be aware of other requirements related to your business presence in Saudi Arabia. As explained by Fahad Algahtani, Senior Account Manager at AstroLabs: “For example, you need to make sure you transfer some funds to your new bank account within 60 days since its opening, otherwise it will get blocked. You also need to get your Saudization certificate to be able to access the Etimad portal and bid on government tenders.”
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