Your Complete Guide to Starting a Company in Saudi Arabia

For Both Local and Foreign Investors

Thinking of launching your business in Saudi Arabia?

Whether you're a Saudi entrepreneur or a foreign investor, starting a business in Saudi Arabia has become more accessible than ever, thanks to digital transformation and the Kingdom’s Vision 2030.

In this guide, we’ll walk you through everything you need to know about starting a company in Saudi Arabia, including step-by-step procedures, legal types, and what’s required if you're a non-Saudi investor.

Who Can Start a Company in Saudi Arabia?

• Saudi Nationals: Can establish any business type without special permits
  
  

• Residents (non-Saudis): Can own or partner in a company, depending on business type
  
  

•  Foreign Investors: Can own 100% of the business, but must get approval from the Ministry of Investment (MISA)
  
  

Common Types of Legal Entities

1. Sole Proprietorship – Ideal for small businesses with one owner
   
   
2. Limited Liability Company (LLC) – Most popular structure
   
   
3. Joint Stock Company – Suitable for large enterprises or public offerings
   
   
4. Branch of a Foreign Company – For international expansion
   
   
5. Professional Company – For regulated activities (e.g., law, accounting)
   
   

Steps to Start a Company in Saudi Arabia (for Saudis & Foreigners)

1. Define Your Business Activity & Legal Structure

Start by choosing your activity (commercial, industrial, tech, etc.) and legal form.

2. Foreign Investors: Get Your MISA License

Apply through the Ministry of Investment’s platform: https://investsaudi.sa

A simple business plan or feasibility study is often required.

3. Reserve Your Trade Name

Done online through the Ministry of Commerce: https://mc.gov.sa
 
Make sure the name:

• Is unique and not previously registered
  
  
• Matches your business activity
  
  
• Avoids restricted words
  
  

4. Draft & Notarize the Articles of Association

Includes:

• Partner info
  
  
• Share distribution
  
  
• Capital amount
  
  
• Business purpose
  
  

It’s processed electronically via the Unified Contract Portal.

5. Register Your Commercial Certificate

Once your contract is notarized, your Commercial Registration (CR) is issued instantly online.
It’s the official document that allows you to operate legally in the Kingdom.

What Comes After Registering Your Company?

Once you get your CR, you’ll need to register with:

• Zakat, Tax, and Customs Authority
  
  
• General Organization for Social Insurance (GOSI) – if you have employees
  
  
• Ministry of Human Resources – to open your labor file
  
  
• Chamber of Commerce – membership may be required
  
  

Operational Licenses & Office Setup

To legally start operations, you’ll need:

• A lease agreement through the "Ejar" platform
  
  
• Municipal license from the local authority
  
  
• Any special permits based on activity (e.g., industrial, food, health)
  
  

Open a Corporate Bank Account

Most banks require:

• Commercial Registration
  
  
• Articles of Association
  
  
• Tax registration certificate
  
  
• Authorized manager’s ID
  
  

A minimum account balance may be required, depending on the bank.

Why Foreign Investors Choose Saudi Arabia

• 100% foreign ownership is allowed in most sectors
  
  
• Access to skilled labor and local/international markets
  
  
• Transparent regulations and fast licensing
  
  
• Government incentives and tax exemptions (for eligible projects)
  
  

Sidrahub Tip

• For foreign investors, MISA licensing is the only extra step
  
  
• Almost all procedures can be done online — no need for physical paperwork
  
  
• Sidrahub can help you handle everything, from setup to bank accounts and permits