Thinking about starting a business in Saudi Arabia as a foreigner? Well, you’re not alone. Entrepreneurs from all over the world are heading to the Kingdom. Why? Simple—Saudi Arabia’s booming economy, ambitious Vision 2030 plans, and a huge push toward diversifying beyond oil have made it a pretty exciting place to set up shop.
If you’ve got a business idea and you’re ready to go international, Saudi Arabia might just be the place to do it.
Now, I know it can sound intimidating different laws, culture, systems. But honestly, once you break it down, it’s not as scary as it seems.
Let’s walk through it together, step by step.
Table of Contents
Why Start a Business in Saudi Arabia?
Before we dive into the how, let’s look at the why. Here’s why foreigners are flocking to the Kingdom to do business:
- Full foreign ownership is now allowed (yep, you can own 100% of your company).
- Strategic location between Asia, Europe, and Africa.
- Low taxes – there’s no personal income tax.
- Growing sectors like tourism, tech, renewable energy, and logistics.
- Access to funding and support from government initiatives.
Who Can Set Up a Business?
Good news—most nationalities can open a business in Saudi Arabia. Whether you’re from India, the UK, Australia, the Philippines, or pretty much anywhere, there’s a path for you.
But yeah, there are a few requirements. You’ll need:
- A foreign investment license from the Ministry of Investment (MISA)
- A commercial registration (CR) with the Ministry of Commerce
- A legal business structure
- Local office or address
- Compliance with Saudi labour laws
Types of Legal Structures You Can Choose
Alright, here’s where it can get a little confusing. Saudi Arabia offers a few different types of company structures. Don’t worry I’ll explain the common ones in plain English:
Limited Liability Company (LLC): This is the go-to for many foreign businesses. You only need one shareholder (that can be you), and your personal assets are protected.
Joint Stock Company (JSC): More suitable for bigger operations. It requires at least 2 shareholders and is ideal if you’re planning to list your company eventually.
Branch of a Foreign Company: If you already have a business abroad and just want to expand into Saudi, this might be the easiest way.
Step-by-Step: How to Register a Business as a Foreigner
Let’s get into the actual steps. Keep in mind, you’ll need to work with someone in Saudi or hire a business setup consultant to make this easier.
Get Your Foreign Investment License (MISA)
This is your first big hurdle. You apply through the Ministry of Investment Saudi Arabia (MISA). They’ll want to see:
- Passport copies
- Bank statements
- A company profile or business plan
- Proof of clean financial history
Once approved, you’re officially allowed to own a business in the Kingdom.
Reserve Your Company Name
You’ll do this through the Ministry of Commerce website. It has to be unique and match your activity.
Draft Your Articles of Association (AOA)
This is your company’s constitution. You’ll need to get it notarised and signed.
Register with the Ministry of Commerce
Once your AOA is done, you can apply for your Commercial Registration (CR).
Open a Corporate Bank Account
Now that you’re registered, it’s time to open a business bank account with a local Saudi bank. You’ll need your CR and MISA license for this.
Get Your Licenses & Permits
Depending on your industry, you might need additional approvals or permits from relevant authorities.
Register with the Zakat, Tax and Customs Authority (ZATCA)
Even though there’s no income tax, you still need to register for VAT (if applicable) and other reporting requirements.
Cost of Starting a Business
Setting up a business in Saudi Arabia isn’t exactly cheap, but it’s manageable—especially compared to other major economies. Here’s a rough idea:
- MISA license fee: around SAR 2,000–10,000
- Commercial registration: approx. SAR 1,200
- Legal translation and documentation: SAR 2,000–5,000
- Office space: Varies a lot—SAR 15,000+ annually
So yeah, budgeting around SAR 20,000–40,000 for the full setup would be realistic for a small to mid-size business.
Successful Business Setup for Foreigners in Saudi Arabia
Starting a business in Saudi Arabia as a foreigner is totally doable and honestly, pretty exciting. With all the new reforms, full ownership options, and a solid push from the government to attract foreign investment, now’s a great time to jump in.
FAQs
Yes, since 2020, full foreign ownership is allowed in many sectors with the right license from MISA.
Not anymore for most activities. But in a few restricted sectors, a local partner might still be needed.
Around 2 to 6 weeks if all documents are in order. Some industries may take longer.
Yes, once your company is registered, you can sponsor work visas and residence permits.
Not for all steps. You can use a consultant or local service provider for much of the process.
Nope. But corporate tax (15%) and VAT (15%) do apply depending on your business.
You’ll need a local office or presence, but day-to-day operations can be managed remotely with the right setup.