Expanding your business across the Gulf Cooperation Council (GCC) can be a smart step—especially if you’re looking at Saudi Arabia. Thanks to the strong trade ties and regulatory alignment between GCC countries, GCC nationals have a much smoother route to opening a branch company in the Kingdom. This article walks you through everything you need to know about setting up a GCC national branch in Saudi Arabia, with practical insights and simplified explanations.
What Is a GCC National Branch Company?
A GCC branch company in Saudi Arabia is not a new or separate legal entity. It’s an extension of an existing company that is already registered in another GCC country like the UAE, Bahrain, Kuwait, Oman, or Qatar.
You do not need a Saudi partner, nor do you fall under the same foreign investor requirements. This is a major benefit that makes it easier and faster to enter the Saudi market.
Benefits of Setting Up a GCC Branch in Saudi Arabia
Setting up a GCC branch in Saudi Arabia offers full ownership, no need for a Saudi sponsor, and faster licensing through simplified procedures. You gain access to a booming market, benefit from tax advantages, and enjoy smoother business entry under GCC agreements, making expansion cost-effective and efficient for regional companies.
100% Ownership
Unlike many foreign entities, GCC nationals enjoy full ownership rights when opening a branch in Saudi Arabia. This allows complete control over operations and profit distribution.
No Sponsorship Needed
You don’t need a Saudi sponsor, which cuts down on negotiation time, paperwork, and shared profits.
Simple Licensing Process
Thanks to GCC mutual agreements, registration and licensing processes are faster and require fewer approvals.
Access to a Growing Market
Saudi Arabia is pushing hard for business growth through Vision 2030, making it a prime destination for GCC entrepreneurs.
Legal Requirements to Start a GCC Branch in Saudi Arabia
To open a branch, you need to show that your company:
- Is legally registered in a GCC country
- Has a valid commercial license
- Is owned by a GCC national
- Has a clean legal and financial record
The branch must also be registered with the Saudi Ministry of Commerce (MoC) and follow the same commercial laws that apply to local entities.
Step-by-Step Guide to Register Your Branch
To register your GCC branch in Saudi Arabia, start by gathering all legal documents, including your parent company’s license. Submit them to the Ministry of Commerce, then secure a municipality license, open a Saudi bank account, and complete registrations with ZATCA and GOSI to begin operations smoothly.
Step 1: Prepare Documents
Gather all necessary legal documents, including:
- Parent company license
- Articles of incorporation
- A resolution to open a branch
- GCC national passport or ID
Make sure all documents are translated into Arabic and attested.
Step 2: Apply for a Commercial Registration (CR)
Submit your paperwork to the Ministry of Commerce. If everything is in order, you’ll receive your Commercial Registration within a few days.
Step 3: Get Municipality License
Before operations start, you’ll need a municipal license (Baladiya license) based on your physical office location.
Step 4: Open a Saudi Bank Account
With your CR and municipality license, you can open a corporate bank account in Saudi Arabia to manage business finances.
Step 5: Register for GOSI and ZATCA
- GOSI (General Organization for Social Insurance): Mandatory for employee contributions.
- ZATCA (Zakat, Tax, and Customs Authority): For VAT and tax compliance.
What Types of Businesses Can Open GCC Branches?
GCC nationals can open branches for a wide variety of sectors, including:
- Consulting firms
- Retail and e-commerce
- Construction and contracting
- IT services
- Healthcare providers
- Import and export companies
Some activities, especially in sensitive sectors like security or oil and gas, may still require additional permits.
Office Setup and Leasing
Your branch must have a physical address in Saudi Arabia. While some business types allow for shared or virtual offices, most require a commercial space. Make sure your lease agreement is registered through the Ejar system.
Hiring and Saudization Requirements
Even if you’re a GCC company, you must follow the Saudization policy. This means hiring a certain percentage of Saudi nationals based on your industry and company size.
Failing to meet Saudization quotas can result in fines, restrictions, or even suspension of services like visa processing.
Taxation and Financial Rules
GCC branches are subject to:
- Zakat (2.5% on assets) for 100% GCC-owned companies
- VAT (15%) if revenue exceeds SAR 375,000 annually
- No corporate income tax if there are no non-GCC shareholders
It’s crucial to maintain clean accounting and submit returns on time.
Banking and Financial Management
You must open a business account with a Saudi bank. The requirements usually include:
- CR and municipality license
- Owner or branch manager’s ID
- Parent company documents
- Office lease
Some banks may ask for a minimum deposit or reference from your GCC bank.
Ongoing Compliance and Renewals
Each year, you must:
- Renew your Commercial Registration
- Renew your municipal license
- Submit Zakat or VAT returns
- Update any changes in company structure
- Keep your GOSI contributions and salaries up to date
Failure to comply with these rules can result in penalties or suspension of your CR.
Challenges You May Face
While setting up a GCC branch in Saudi Arabia is easier than starting a foreign-owned company, some challenges still exist:
- Finding the right office location
- Meeting Saudization quotas
- Managing local employee expectations
- Navigating changing regulations
Working with local consultants or a business setup company in Saudi Arabia can help smooth the process.
Estimated Setup Timeline
From documentation to full licensing, setup typically takes 3 to 6 weeks, depending on how quickly you submit documents and approvals are granted.
Conclusion
Opening a GCC national branch in Saudi Arabia is one of the smartest business moves you can make in 2025. You benefit from 100% ownership, simplified processes, and access to a rapidly growing economy. While compliance and Saudization need attention, the opportunity to thrive is unmatched.
If you want to move quickly and avoid complications, partnering with a trusted Business Setup Company in Saudi Arabia will help you navigate each step smoothly—from licensing to operations, banking, and HR compliance.
FAQs
Can I open more than one branch in Saudi Arabia as a GCC national?
Yes. Once your main branch is set up, you can apply to open additional branches across different cities.
Is a Saudi partner required for a GCC branch?
No. If you’re a GCC citizen, you can own 100% of your Saudi branch without a local partner.
What if I want to expand into a restricted sector?
Some sectors need special permissions or joint ventures. Consult with a Saudi business advisor for sector-specific guidelines.
Do I need to file financial audits annually?
Yes. While small businesses may have simpler requirements, medium to large branches must file audited financial statements.
Is it better to open a branch or a new company?
If you already have a business in the GCC, a branch offers faster setup and fewer restrictions. For unique brands or Saudi-based partners, a new company might be more flexible.
