Company Formation in Saudi Arabia

Company Formation

From MISA licence to a compliant, operating company

OPU supports foreign companies and entrepreneurs entering Saudi Arabia, from the MISA investment licence through commercial registration to tax and labour compliance after incorporation. Most sectors allow 100% foreign ownership, and an average set-up takes about 4 to 8 weeks.

Because OPU is also an audit, accounting and tax firm, your books, Zakat and VAT registrations are planned from the start rather than added later.

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Legal structures we set up

The right structure depends on your activity, capital and plans.

Limited Liability Company (LLC)The most common structure, with limited liability and flexible management.
Branch of a foreign companyOperates without a separate legal entity, and the parent stays fully liable.
Joint Stock Company (JSC)Tradable shares, typically for large enterprises planning capital raising or listing.
Regional Headquarters (RHQ)A central base for managing regional operations under the RHQ programme and incentives.
Technical or scientific officeProvides technical support, research and advisory, but cannot make commercial sales.
Compliance supportOngoing help with tax, labour, regulatory and legal obligations after set-up.

The set-up process

  1. 01
    Planning & MISA licensing (2 to 4 weeks)

    Choose the legal structure, apply for the investment licence and clear the business activity review.

  2. 02
    Company registration (3 to 7 working days)

    Reserve the trade name, obtain the Commercial Registration and Ministry of Commerce approval.

  3. 03
    Legal documentation (2 to 5 working days)

    Notarise the Articles of Association, prepare incorporation documents and finalise shareholder agreements.

  4. 04
    Post-incorporation set-up (2 to 3 working days)

    Register with the Chamber of Commerce and the National Address, and obtain municipality licences where applicable.

  5. 05
    Labour & tax registration (3 to 7 working days)

    Register with Qiwa, GOSI and ZATCA for VAT and corporate tax.

  6. 06
    Bank account, visas & Iqama

    Corporate bank account in about 2 to 6 weeks, visas 2 to 4 weeks after registration and Iqama 7 to 14 days after arrival.

Document requirements

Established companies

Legalised trade licence from the home country, legalised board resolution for the Saudi expansion, legalised Articles of Association and audited financial statements for the last fiscal year.

Start-ups (entrepreneur licence)

Endorsement letter from a VC or licensed incubator, pitch deck and business plan summary, and founder passport copies.

Authorities involved

MISA for the licence, the Ministry of Commerce for registration, ZATCA for tax, and Nitaqat Saudization rules for workforce planning.

Timelines

About 4 to 8 weeks for incorporation, or 6 to 10 weeks including the bank account and visas, depending on activity and documents.

Frequently Asked Questions

Can a foreigner own 100% of a Saudi company?

Generally yes, through a MISA licence. Restricted sectors such as certain retail, media and real estate activities may need a Saudi partner or minimum capital.

What is a MISA licence?

It authorises foreign companies to invest and operate in the Kingdom, including with full ownership. It needs a company profile, audited financials and the proposed activities, and approval usually takes 2 to 4 weeks.

What is the minimum capital?

A foreign-owned LLC generally needs SAR 500,000 paid-up capital. Branches need no separate capital but the parent must show adequate capitalisation. Banking, insurance and contracting have higher regulator-set requirements.

How long does registration take?

A standard Saudi LLC with local shareholders can take 2 to 4 weeks. Foreign-owned entities needing MISA approval usually take 4 to 8 weeks. Please confirm current timelines and capital with OPU before planning.

Related finance and advisory services

Financial ConsultingFeasibility studies, valuations, cash flow management and restructuring in Saudi Arabia.Accounting ServicesBookkeeping, IFRS reporting, consolidation, payroll and outsourced accountants for businesses in Saudi Arabia.Tax & Zakat AdvisoryZakat calculation and filing, corporate tax, withholding tax and ZATCA compliance in Saudi Arabia.Finance, Audit & Advisory overviewSee all seven OPU services in one place.

Get a personalised set-up roadmap

Tell OPU about your business and receive a clear plan and timeline.

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