08 Oct How to Register a 100% Foreign-Owned Company in Saudi Arabia
Saudi Arabia has become one of the most attractive destinations for foreign investors in the Middle East. With an ambitious vision to diversify its economy, the Kingdom has implemented sweeping reforms to create a world-class business environment. Today, entrepreneurs and corporations can establish 100% foreign-owned companies in Saudi Arabia, a milestone that marks the country’s transformation into a global investment hub.
If you are an international investor looking to expand into the Kingdom, understanding the new regulations, licensing process, and compliance requirements is essential. This guide explains how to register a fully foreign-owned company in Saudi Arabia in 2025 — step by step.
Understanding 100% Foreign Ownership in Saudi Arabia
Until a few years ago, foreign investors were required to have a local Saudi partner who owned at least 51% of the company. However, as part of Vision 2030, the Saudi government liberalized investment laws to allow 100% foreign ownership in most sectors.
This reform is administered by the Ministry of Investment of Saudi Arabia (MISA), formerly known as SAGIA (Saudi Arabian General Investment Authority). Under MISA regulations, international investors can now establish limited liability companies (LLCs), joint stock companies (JSCs), or branch offices without local ownership — provided they meet certain eligibility and compliance standards.
This move has positioned Saudi Arabia as one of the most investor-friendly markets in the GCC, attracting global businesses in industries such as technology, construction, logistics, consulting, education, healthcare, and manufacturing.
Step-by-Step Process to Register a 100% Foreign-Owned Company in Saudi Arabia
Step 1: Choose Your Legal Structure
The first step is selecting the legal entity that best fits your business model. The most common structures for foreign investors are:
- Limited Liability Company (LLC) – Suitable for small to medium enterprises; requires one or more shareholders.
- Joint Stock Company (JSC) – Ideal for large-scale businesses; can offer shares to the public.
- Branch of a Foreign Company – Allows a foreign parent company to operate directly under its existing name.
Each structure has different requirements in terms of capital, governance, and liability. Most investors choose the LLC structure for its flexibility and simplicity.
Step 2: Obtain a MISA Investment License
The MISA Investment License is mandatory for any foreign investor. It authorizes the establishment of a foreign-owned company in the Kingdom.
To apply for the license, you must submit:
- A completed MISA application form.
- Parent company incorporation documents (attested by the Saudi Embassy and Ministry of Foreign Affairs).
- A recent audited financial statement of the parent company.
- A business plan outlining proposed activities and investment capital.
Once MISA reviews and approves your application, it issues an Investment License, granting you the right to proceed with company registration.
Step 3: Register the Company with the Ministry of Commerce (MoC)
After obtaining the MISA license, the next step is registering your company with the Ministry of Commerce (MoC) to obtain a Commercial Registration (CR) certificate.
This process involves:
- Drafting and notarizing the Articles of Association (AOA).
- Appointing company directors and managers.
- Choosing an official business address and obtaining a lease contract registered through the Ejar system.
The MoC will review your documents and issue the Commercial Registration Certificate, which officially recognizes your company as a legal entity in Saudi Arabia.
Step 4: Register with the Chamber of Commerce
Every registered company in Saudi Arabia must become a member of the Saudi Chamber of Commerce. Membership grants access to official correspondence, government tenders, and networking opportunities. It also enables the company to issue official documents and invoices.
Step 5: Register for Zakat and Tax with ZATCA
Once you have your commercial registration, your company must register with the Zakat, Tax and Customs Authority (ZATCA) for taxation purposes.
Saudi Arabia levies a 20% corporate income tax on foreign-owned businesses and a 15% Value Added Tax (VAT) on most goods and services. Fully Saudi- or GCC-owned companies are subject to Zakat at 2.5%, but 100% foreign-owned entities are only subject to corporate tax.
ZATCA’s online platform simplifies registration, tax return submissions, and e-invoicing compliance.
Step 6: Open a Corporate Bank Account
You will need a corporate bank account to manage your company’s financial operations. Major Saudi banks such as Al Rajhi Bank, Saudi National Bank (SNB), and Riyad Bank offer dedicated corporate services for foreign-owned entities.
To open an account, you will need your MISA license, Commercial Registration, Chamber of Commerce certificate, and shareholder identification documents.
Step 7: Obtain Municipality License and Additional Approvals
Depending on your business activity, you may need a municipal license or other sector-specific permits (for example, from the Ministry of Health, Ministry of Tourism, or Saudi Food and Drug Authority).
For office-based activities such as consulting or IT, only a municipality license is required. For industrial, healthcare, or education projects, additional approvals must be obtained from relevant authorities.
Step 8: Process Residency Visas
After your company is registered, you can apply for residency visas (Iqamas) for shareholders, employees, and dependents. Visa processing is managed through the Qiwa and Muqeem portals, which handle employment contracts and government services online.
Key Requirements for 100% Foreign Ownership
To qualify for full foreign ownership, you must meet the following basic conditions:
- A valid and verifiable foreign parent company.
- Sound financial history, supported by audited accounts.
- A clear and compliant business activity approved by MISA.
- Adherence to Saudi labor laws, Saudization quotas, and regulatory guidelines.
- While most sectors are open to 100% ownership, a few strategic industries such as oil exploration, military manufacturing, and security remain restricted or require local partnership.
Benefits of Establishing a 100% Foreign-Owned Company in Saudi Arabia
Setting up a 100% foreign-owned company offers numerous advantages in the Kingdom’s evolving business landscape.
You retain full control and ownership of your business without needing a local partner. The Kingdom provides unlimited profit repatriation, access to government contracts, and a robust legal framework that protects investor rights.
Saudi Arabia’s strategic location also enables companies to serve the entire MENA region efficiently. With advanced digital systems, streamlined licensing, and reduced bureaucracy, the process is now faster and more transparent than ever.
Estimated Cost and Timeline
The cost of setting up a 100% foreign-owned company in Saudi Arabia varies depending on business activity, size, and licensing type. On average, initial setup costs range between SAR 25,000 and SAR 60,000, including government fees, document attestation, and registration costs.
The timeline typically spans 6 to 10 weeks, depending on documentation readiness and sector approvals.
How GCC Solutions Can Help
Navigating the Saudi business setup process can be complex, especially for foreign investors unfamiliar with local laws. GCC Solutions offers end-to-end support — from obtaining your MISA license and Commercial Registration to setting up bank accounts, tax registration, and visa processing.
Our experienced team ensures complete compliance with Saudi Arabia’s 2025 investment regulations, saving you time, cost, and administrative effort. Whether you are launching a new company or expanding your international presence, GCC Solutions provides the expertise to make your business setup in Saudi Arabia seamless and efficient.
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