Step-by-Step Guide to Registering Your Business in Saudi Arabia

Nov 7

3 min read

If you're looking to establish a business in Saudi Arabia, here's a comprehensive, step-by-step guide on how to register your company through the Ministry of Investment of Saudi Arabia (MISA). This process is streamlined to ensure foreign businesses can establish a presence effectively, with MISA offering substantial support to guide investors along the way.

Step 1: Identify Your Business Activity (ISIC Code)

Start by identifying the International Standard Industrial Classification (ISIC) code for the activities you plan to undertake in Saudi Arabia. Access the ISIC codes here.
Once chosen, share these codes with a MISA advisor to determine the specific license your business needs, along with any prerequisites.

Step 2: Understand MISA’s License Requirements

Review the MISA Services Manual, which details the types of licenses available and general requirements for each. The manual is available here.

Step 3: Apply for a MISA License

Submit an online application for the MISA license through the MISA portal here. Required documents include:
- The commercial registration of the foreign parent company.
- One year of audited financial statements for the foreign entity.
Note: For businesses registered in the UK, documents submitted to the Ministry of Investment do not need to be attested. However, documents for the Ministry of Commerce will require attestation.

Step 4: Reserve a Trade Name (For LLCs)

If setting up a Limited Liability Company (LLC), complete a trade name reservation form. For foreign entity branches, this step is unnecessary, as the original business name can be used.

Step 5: Draft the Articles of Association (AoA)

For LLCs or Individual LLCs, a new Articles of Association (AoA) draft is required. Branches of foreign entities only need a shareholder resolution that specifies:
- Branch capital
- Business activities (as per ISIC)
- Location
- General Manager’s name and authorities

Submit the following documents:
- MISA license copy
- AoA
- Commercial Registration of the foreign entity
- Trade name reservation form
- Manager or board resolution details
Note: All documents must be translated to Arabic and attested by the Saudi embassy in the origin country and the Ministry of Foreign Affairs (MOFA) in Saudi Arabia.

Step 6: Issue the Commercial Registration (CR)

Once the AoA is notarized, apply for a Commercial Registration (CR) for your Saudi entity. Required documents differ based on entity type:
- For Foreign Entity Branches:
  - MISA investment license, foreign entity registration, AoA, shareholder resolution, GM’s passport, and notarized ID and Power of Attorney.
- For LLCs:
  - Investment license, attested AoA, shareholder resolution, identification of foreign shareholders and directors, and notarized ID and Power of Attorney.

Additional Steps: Post-License Activities

After obtaining the MISA license and Commercial Registration, refer to MISA's “Investor Journey” guide, which covers further operational steps, including regulatory compliance, visa applications, and potential facility setup in Saudi Arabia.

By following these structured steps, foreign businesses can efficiently establish their presence in Saudi Arabia, capitalizing on the opportunities in one of the Middle East's most dynamic economies. For additional support at any step, feel free to reach out to MISA or consult professional advisors who specialize in Saudi business registration processes.

For a smooth and efficient business setup in Saudi Arabia, consider reaching out to R Consultancy Group. Our team offers expert guidance and hands-on support at each stage of the registration process, ensuring you meet all regulatory requirements and navigate local procedures with ease. From selecting the right ISIC codes to obtaining your Commercial Registration, R Consultancy Group is here to help you make the most of your investment journey in Saudi Arabia.