Saudi Arabia is booming. Its Vision 2030 program is opening more doors to international businesses than ever before. Whether you’re in technology, retail, manufacturing, or consulting, opening a branch of your international company in Saudi Arabia is a golden opportunity you shouldn’t miss.
This guide will walk you through the entire process—from legal steps to insider tips—so you can expand into the Saudi market with confidence.
Why Expand Your International Company to Saudi Arabia?
Before we dive into the process, let’s look at why Saudi Arabia is attracting so many global brands.
A Growing Economy
Saudi Arabia is diversifying beyond oil. With billions invested in tourism, technology, healthcare, education, and entertainment, the market is hungry for international expertise.
Business-Friendly Reforms
New company laws, easier licensing processes, foreign ownership allowances, and economic cities like NEOM create a welcoming environment for global companies.
Strong Consumer Demand
Saudi’s young, tech-savvy, and high-spending population is constantly seeking new brands, services, and solutions.
Key Requirements to Open a Branch of an International Company in Saudi Arabia
It’s not as complicated as you might think—but you must follow the official steps carefully.
Parent Company Requirements
- The parent company must be registered and operational in its home country.
- It should have a track record of at least 1–2 years (depending on activity type).
- Financial statements may be required to show business health.
Saudi Business Activity Approval
Not all sectors are automatically open. Some strategic sectors like oil exploration may need special approvals. Most industries like consulting, IT, construction, and healthcare are fully open for foreign branches.
Commercial Registration and Licenses
You must secure a Foreign Investment License through MISA (Ministry of Investment of Saudi Arabia) and a Commercial Registration (CR) with the Ministry of Commerce.
Step-by-Step Process to Open an International Company Branch in Saudi Arabia
Opening a branch of an International Company in Saudi Arabia might seem complicated, but it’s a clear process when broken down step-by-step. From reserving your company name to securing licenses and setting up your office, each stage builds a strong legal foundation to help you launch and grow confidently.
Step 1 – Reserve a Trade Name
First, reserve a suitable trade name via the MOC portal. It should match or closely align with the parent company’s original name.
Step 2 – Apply for a Foreign Investment License (MISA License)
You’ll need to submit:
- Parent company’s Certificate of Incorporation
- Articles of Association
- Board Resolution authorizing Saudi branch establishment
- Financial audit report of the parent company
- Passport copies of directors/shareholders
All documents must be attested by the Saudi Embassy in your home country and the Ministry of Foreign Affairs in Saudi Arabia.
Step 3 – Obtain Commercial Registration (CR)
Once your MISA license is approved, you apply for Commercial Registration.
This gives your branch official legal presence inside Saudi Arabia.
Step 4 – Register with the Chamber of Commerce
After obtaining CR, you must register with the Saudi Chamber of Commerce, a vital step for future contracts, visas, and government dealings.
Step 5 – Set Up Office Space
Physical office space is mandatory. You cannot operate virtually.
Choose a suitable office based on your business model—especially in Riyadh, Jeddah, or Dammam, which are business hubs.
Step 6 – Obtain Municipal and Special Licenses
Depending on your sector, you might need additional permits:
- Municipality License (Baladiya)
- Specific operational permits (if offering specialized services like healthcare or engineering)
Step 7 – Register for Zakat and VAT
You’ll need to register with the Zakat, Tax and Customs Authority (ZATCA) for Zakat and VAT (if your annual turnover crosses the threshold).
Document Required to Open an International Branch
Here’s a quick checklist:
- Parent company’s Certificate of Incorporation (attested)
- Articles of Association (attested)
- Board resolution to open a branch (attested)
- Power of Attorney for local manager (attested)
- Audited financial statements (attested)
- Trade name reservation certificate
- MISA investment license
- Passport copies of managers/directors
Make sure all foreign documents are translated into Arabic and officially notarized.
Legal and Regulatory Compliance for Branch Operations
Once operational, your International Company in Saudi Arabia must:
- Maintain a local manager or legal representative
- Keep proper accounting books in Saudi Arabia
- Renew your Commercial Registration annually
- Follow Saudization rules (employing Saudi nationals based on company size)
- Comply with Zakat and VAT regulations
Saudi Arabia takes corporate compliance seriously—so staying updated is essential for smooth operations.
Benefits of Opening an International Company Branch in Saudi Arabia
Opening a branch of your International Company in Saudi Arabia gives you direct access to a booming economy, full foreign ownership rights, and a trusted local presence. It strengthens your brand, opens doors to government and private contracts, and connects you to one of the most dynamic markets in the region.
Direct Access to Growing Markets
You can work directly with Saudi clients—government and private—without intermediaries.
Full Foreign Ownership
Branches allow 100% foreign ownership under Saudi Arabia’s new investment laws.
Enhanced Brand Presence
Establishing a local branch builds trust, credibility, and visibility in Saudi Arabia’s competitive business landscape.
Tax and Legal Advantages
Saudi Arabia offers a flat corporate income tax rate of 20% for foreign companies, with no personal income tax.
Strategic Location
Located at the crossroads of Europe, Asia, and Africa, Saudi Arabia gives companies access to billions of consumers regionally.
Cost to Open an International Company Branch in Saudi Arabia
Here’s a rough breakdown:
| Expense | Estimated Cost (SAR) |
| MISA License Application | 2,000 – 10,000 |
| Commercial Registration (CR) | 1,200 – 2,000 |
| Chamber of Commerce Registration | 2,000+ |
| Office Lease (per year) | 20,000 – 100,000 |
| Legal and Translation Fees | 5,000 – 15,000 |
Costs vary based on business sector, office location, and legal support required.
Common Challenges for International Businesses in Saudi Arabia
International businesses in Saudi Arabia often face challenges like adapting to local culture, navigating frequent regulatory changes, meeting Saudization hiring quotas, and managing Arabic-language requirements. Building strong local partnerships, staying updated with legal changes, and respecting Saudi business customs are key to overcoming these hurdles and achieving long-term success.
Regulatory Changes
Saudi Arabia’s laws evolve quickly. It’s crucial to work with a legal partner who can keep you updated.
Cultural Adaptation
Business culture is relationship-driven. Building trust and understanding local norms is essential.
Saudization Compliance
Depending on your company size and sector, you’ll need to employ a certain percentage of Saudi nationals.
Conclusion
Opening a branch of your International Company in Saudi Arabia offers a fantastic opportunity to tap into one of the world’s fastest-growing, high-potential markets.
With full foreign ownership, streamlined licensing, and booming consumer demand, Saudi Arabia is quickly becoming a top global business destination.
If you want smooth, fast, and compliant expansion, partnering with experts in Company Registration in Saudi Arabia can make the entire journey seamless—saving you time, avoiding costly mistakes, and helping you focus on growth.
FAQs
How long does it take to open a branch of an international company in Saudi Arabia?
The full process usually takes between 2 to 3 months, depending on document preparation, approvals, and sector-specific licensing.
Do I need a Saudi partner to open a branch?
No. Foreign investors can now fully own their branch under Saudi Arabia’s new investment laws.
Can an international branch participate in government tenders?
Yes, once registered and properly licensed, your branch can bid for both private and government contracts.
Is Saudi Arabia good for international business?
Absolutely. With economic diversification, Vision 2030 initiatives, and investment-friendly policies, Saudi Arabia is one of the best places for international business expansion.
How to open a foreign company branch in Saudi Arabia?
To open a foreign company branch in Saudi Arabia, you must:
- Reserve a trade name through the Ministry of Commerce.
- Apply for a Foreign Investment License from the Ministry of Investment (MISA).
- Submit notarized and attested documents like the parent company’s Certificate of Incorporation and financials.
- Obtain Commercial Registration (CR).
- Register with the Chamber of Commerce and secure a municipal license.
- Set up a physical office and comply with tax and Saudization regulations.
Once approved, your branch can legally operate and serve clients across Saudi Arabia.
What is a branch of a foreign company?
A branch of a foreign company is an extension of the parent company operating in a different country. In Saudi Arabia, a branch acts on behalf of the parent company, offering products or services directly under the same brand. It does not create a separate legal entity but must comply with local business laws and regulations.
