Company Formation in Saudi Arabia | Expert Indian Professional Guidance

Procedure of Company Setup in Saudi Arabia for Foreigners

Saudi Arabia, the largest economy in the Middle East, has implemented major reforms under Vision 2030 to attract global investors. These reforms have significantly simplified Company Formation in Saudi Arabia | Expert Guidance by Indian Professional, allowing 100% foreign ownership in many sectors and making LLC company setup in Saudi Arabia one of the most preferred options for Indian and international investors.

This page serves as a complete guide for Business Setup in Saudi Arabia, covering legal, licensing, and visa pathways for foreign investors looking at Business Setup In Saudi Arabia (KSA) and understanding how to start a business in Saudi Arabia with professional support.

This guide also explains the complete procedure of company setup in Saudi Arabia for foreigners, including eligibility, legal structures, MISA investment license requirements, MISA business visa application, visa pathways, and compliance obligations. Investors can benefit from expert guidance to streamline approvals, secure a General Manager visa, and meet all regulatory requirements efficiently.

Eligibility for Foreigners to Set Up a Company in Saudi Arabia

Foreign nationals and foreign-owned entities are eligible for Company Setup Services in Saudi Arabia with Indian Professional assistance, subject to approval from the Ministry of Investment of Saudi Arabia (MISA).

With Business Setup in Saudi Arabia with Expert Guidance by Indian Professional, foreign investors can ensure full compliance with MISA regulations and Vision 2030 requirements.

Foreign Investor Eligibility Criteria

Foreigners can establish a business in Saudi Arabia if they meet the following conditions:

1. The proposed business activity is permitted under MISA investment license requirements
2. 100% foreign ownership is allowed in most commercial, industrial, and service sectors
3. The investor submits a viable business plan aligned with Vision 2030 goals
4. Required capital is met as specified by MISA based on the business activity
5. The business does not fall under restricted sectors such as oil exploration, military services, or real estate investment in Makkah and Madinah (unless special approval is obtained)

These reforms make LLC company setup in Saudi Arabia highly attractive for Indian entrepreneurs and foreign companies.

Step-by-Step Procedure for Company Formation in Saudi Arabia

1. Choose the Appropriate Business Structure

Foreign investors can choose from several legal structures based on business size, activity, and future plans.

Limited Liability Company (LLC)

• Most preferred structure for foreign investors
• Allows 100% foreign ownership in most sectors
• No fixed minimum capital in many activities
• Ideal for SMEs and service-based companies
• Highly recommended for LLC company setup in Saudi Arabia

Regional Headquarters (RHQ): New for 2026

If you plan to bid for government contracts, you must establish an RHQ. This comes with a 30-year corporate tax holiday (0% tax).

Branch Office

• Suitable for foreign companies expanding into Saudi Arabia
• The parent company bears full liability

Joint Stock Company (JSC)

• Suitable for large-scale projects and IPO plans
• Higher capital and regulatory requirements

Subsidiary Company

• Separate legal entity owned by a foreign parent company
• Provides operational independence

Professional advisory is recommended for Company Formation in Saudi Arabia | Expert Guidance by Indian Professional.

2. Obtain Investment License from MISA

A foreign investment license is mandatory to operate legally in Saudi Arabia.

Key MISA Investment License Requirements:

• A foreign investment license (or registration certificate) is mandatory. Key MISA Investment License Requirements:
• Detailed business plan and audited financial statements (last 1–2 years).
• Consolidated Licensing: You can now run multiple activities under one single MISA certificate, reducing annual fees.
• Processing Time: Now significantly reduced to 5–15 working days via the Saudi Business Center digital portal.

3. Trade Name Reservation and MCI Registration

After MISA approval:

• Reserve the trade name through the Ministry of Commerce

Submit:

1. MISA investment license
2. Articles and Memorandum of Association
3. General Manager identification
4. Registration fees

The Commercial Registration (CR) is usually issued within 7–15 working days.

4. Secure Business Premises in Saudi Arabia

Foreign companies must establish a physical office presence:

• Virtual offices are not permitted for LLCs
• Office lease agreement is mandatory
• Address registration through Wasel is required
• Municipality license may apply based on activity

This step is mandatory for LLC company setup in Saudi Arabia.

5. Open a Corporate Bank Account

To operate financially, a local bank account is required. Documents include:

• MISA license
• Commercial Registration
• Articles and Memorandum of Association
• Office address proof
• General Manager identification
• Most banks require the GM to be physically present.

6. Register with Government Authorities

Post-incorporation registrations include:

• ZATCA for corporate tax (20%) and VAT (15%)
• HRSD for work visas and Saudization compliance
• GOSI for employee social insurance
• Chamber of Commerce membership

7. Appoint General Manager and Obtain Visas

• Company registration for GM Visa Saudi is a critical step for Indian investors.
• Saudi General Manager Visa for Mumbai investors allows the GM to manage local operations and bank accounts.
• New Option: Investors can also explore the Premium Residency (Entrepreneur/Investor track) for sponsor-free long-term stay.

Important: While many check the saudi tourist visa for indian requirements, a tourist visa is only for visits. To sign documents and manage the company, a MISA business visa application is necessary.Indian founders commonly apply for a Saudi business visa for Indian entrepreneurs or a Saudi visa for business owners to legally manage operations, sign contracts, and open corporate bank accounts in the Kingdom.

8. Obtain Additional Industry-Specific Licenses

Certain sectors such as healthcare, construction, logistics, and food services require additional approvals from authorities like:

• Saudi Food and Drug Authority
• Ministry of Health
• Relevant municipal bodies

Key Considerations for Foreign Investors

• Saudization (Nitaqat) compliance is mandatory
• Saudi Arabia has no personal income tax, but corporate tax and VAT apply
• Cultural understanding is essential for smooth business operations
• Regional headquarters requirements apply for government contracts post-2023

Why Choose SVA for Company Setup in Saudi Arabia?

SVA offers complete Company Setup Services in Saudi Arabia with Indian Professional expertise, supporting foreign investors from licensing to compliance.

Our services include:

• LLC company setup in Saudi Arabia
• Fulfilment of MISA investment license requirements
• Company registration for GM Visa Saudi
• Saudi General Manager Visa for Mumbai investors
• MISA business visa application
• Post-setup compliance and advisory support

SVA is among the leading Business Setup Consultants in Riyadh KSA |Expert Guide by Indian Professional, offering end-to-end solutions for Business Setup in Saudi Arabia | Start a Company in KSA.

Key Considerations for Foreign Investors (2026)

• Saudization 2026 Updates: Specific sectors like Engineering (30%) and Procurement (70%) now have higher localization targets.
• Regional Headquarters (RHQ): Mandatory for any company wanting to participate in Saudi government tenders.
• Tax Incentives: 30-year tax holiday for eligible RHQ entities.

Estimated Timelines

Total company setup duration: 3–6 months

Licensing and Commercial Registration: 40–60 days (with complete documentation)