Reforms under Vision 2030, including the updated Investment Law, have aimed to make investing in Saudi Arabia clearer for foreign companies. Setting up a company is still a structured process involving several government bodies, and the order of the steps matters. This guide outlines the general path for a foreign investor. The exact steps depend on your business activity and legal structure.
1. Define your activity and legal structure
Start by deciding what your company will do and how it will be structured, for example as a limited liability company or as a branch of your foreign parent company. This choice affects your registration requirements, ownership options and the approvals you will need. Activities are classified under official activity codes, and choosing the wrong classification can delay or derail an application.
2. Register with the Ministry of Investment (MISA)
Foreign investors must register with MISA before investing. Under the updated Investment Law, which took effect in February 2025, Investment Registration replaced the former investment licensing procedure, and a single registration certificate can cover multiple activities. MISA also publishes a list of activities restricted for foreign investment, so check your activity early.
3. Prepare your documents
MISA asks for documents based on the type of investor. Documents from a foreign parent company typically need to be attested and, where required, translated before submission. Incomplete or incorrectly attested documents are a common cause of delay.
4. Finalise company documents and obtain your Commercial Registration
Investment Registration does not replace incorporating the company. Once registered with MISA, the investor finalises the company’s constitutional documents and obtains the Commercial Registration (CR) from the Ministry of Commerce.
5. Complete the remaining approvals and registrations
A CR alone does not make a company operational. Depending on your activity, you may also need sector-specific approvals, municipal permits, tax registration with ZATCA, employee-related registrations with authorities such as the Ministry of Human Resources and Social Development, and a corporate bank account.
A word on tax
Income tax at 20% generally applies to the share of income attributable to non-Saudi and non-GCC ownership, while Saudi and GCC ownership shares fall under Zakat at 2.5%. The right treatment depends on your ownership structure, so take professional advice.
Common mistakes to avoid
- Choosing the wrong activity classification
- Completing steps out of order
- Submitting incomplete or unattested documents
- Overlooking post-setup requirements such as tax, labour and banking
How IAGCC Solutions can help
IAGCC Solutions supports foreign companies through each stage, from MISA registration and document preparation to Commercial Registration and post-setup compliance, with offices in Al Khobar and Riyadh. Contact our team to discuss your structure and next steps.
