- A foreign-owned company usually starts with a MISA licence, then gets a commercial registration from the Ministry of Commerce.
- You choose a legal form first, such as an LLC, a one-person company or a branch of a foreign company.
- Foreign documents must be attested by the Saudi embassy, or carry an Apostille where the country allows it.
- After the commercial registration you register with GOSI, with ZATCA for VAT when needed, and on Qiwa.
Who needs a MISA licence to start a company in Saudi Arabia?
If the owners are foreign, the first office you deal with is the Ministry of Investment, known as MISA. It gives the investment licence that lets a foreign owner run a business in the Kingdom.
What is a MISA licence?
It is a licence that approves a foreign investor to operate a business in Saudi Arabia. In the usual order, you get it first. The commercial registration comes after MISA approves you.
Does a Saudi owner need a MISA licence?
A company owned only by Saudis usually starts at the Ministry of Commerce and does not need an investment licence. Rules differ by activity, so confirm your case with the Ministry of Commerce before you spend money.
Which legal structure can a foreign company choose in Saudi Arabia?
You pick the legal form before you apply. It decides who owns what, who is liable and how you are taxed.
What legal forms are available?
The common choices are:
- a limited liability company (LLC)
- a one-person company
- a joint stock company
- a branch of a foreign company
- a solidarity professional company
Should you open a branch or a new company?
A branch is part of your foreign company. A subsidiary is a separate Saudi company. Branches usually use the parent company's name. Subsidiaries have more freedom in the name. Ask your adviser which one fits the contracts you want to win.
What documents do you need to apply for a MISA licence?
Most delays come from documents, so prepare them early.
Which documents are required?
- the commercial registration of the parent company in its home country
- the parent company's last year of financial statements
- the Articles of Association, or Memorandum of Association
Do foreign documents need attestation?
Yes. The commercial registration and financial statements must be authenticated by the Saudi embassy. Documents also go through the foreign ministry of the home country. If your country is part of the Hague Apostille Convention, an Apostille may replace the embassy step.
Why is the Articles of Association needed?
MISA needs it with your application, however many licences you hold. It sets out how the company is owned and run, so write it with care.
What are the steps to get a commercial registration in Saudi Arabia?
The order matters. Doing a step early can force you to repeat it.
What is the order of steps?
- Create an account on the MISA website and verify it by phone or email.
- Fill in the entity details, the stakeholder details and the contact details.
- Reserve the business name through the Ministry of Commerce.
- Submit the Articles of Association with the application.
- After MISA approves, get the commercial registration from the Ministry of Commerce.
How long does it take?
We could not find an official timeline, so we do not give one. Treat any number you hear as an estimate and ask MISA directly.
How much does a MISA licence cost?
One guide puts it at around SAR 12,000, but fees change. Check the current fee on the MISA website before you budget.
What must a new company register for after the commercial registration?
The commercial registration is not the end. Three registrations follow.
Do you need to register with GOSI?
Yes, if you will employ people. GOSI is the social insurance body. You need the commercial registration, the VAT number, the national address, an IBAN and the ID of the authorised person. Registration is free and is usually quick, but check the portal for the current time.
Do you need to register for VAT?
The standard VAT rate is 15%. Registration is mandatory for resident businesses when taxable turnover passes SAR 375,000 in a rolling 12 months. It is voluntary between SAR 187,500 and SAR 375,000. Non-resident businesses have no threshold. Foreign-owned companies also upload the MISA licence and the Articles of Association.
Why do you need Qiwa?
Qiwa is the labour platform. GOSI registration is needed to activate your company account there. Work permit requests depend on it.
Last step: rules and fees change. Check the official pages listed in the sources before you act.