How to Register a Company in Saudi Arabia: A Step-by-Step Guide (2025)

Step 1: Choose Your Business Activity

The first step in the process is deciding what type of business you want to establish. Saudi Arabia categorizes businesses based on activities, such as:

• Commercial Activities: Retail, trading, or distribution.
• Industrial Activities: Manufacturing or production.
• Service-Based Activities: IT services, consulting, or healthcare.

Ensure your business activity aligns with the Ministry of Investment Saudi Arabia (MISA) guidelines. This decision impacts the licenses and approvals you’ll need.

Step 2: Decide on a Legal Structure

Choosing the right legal structure is crucial as it determines your company’s legal obligations and ownership structure. The most common types of business entities in Saudi Arabia include:

Limited Liability Company (LLC)

• Suitable for small to medium-sized businesses.
• a minimum of one shareholder.

Joint Stock Company (JSC)

• Ideal for large businesses planning to raise capital.

Branch Office

• Allows foreign companies to operate directly in Saudi Arabia.

Sole Proprietorship

• Best for individuals planning to start small-scale businesses.

Each structure has specific requirements, so consult with our expert team to make the right choice.

Step 3: Obtain MISA Approval

If you’re a foreign investor, obtaining approval from the Ministry of Investment Saudi Arabia (MISA) is mandatory. Here’s what you need to do:

• Submit a detailed business plan.
• Provide financial statements and proof of investment.
• Ensure your business activity is aligned with MISA’s list of approved sectors.

MISA approval grants you the right to operate and provides incentives like tax exemptions and funding opportunities.

Step 4: Reserve Your Company Name

Once you’ve decided on a business structure, the next step is to reserve your company name. The Ministry of Commerce requires businesses to register a unique name that reflects their brand and complies with Saudi regulations.

Tips for Name Registration:

• Avoid prohibited words and phrases.
• Ensure the name is not already in use.
• Choose a name that reflects your business activity.

Step 5: Draft and Approve the Articles of Association (AOA)

The Articles of Association (AOA) outline your company’s structure, management, and operational guidelines. This document must be:

• Prepared in Arabic and English.
• Reviewed and notarized by the Saudi Business Center.

The AOA will be submitted to the Ministry of Commerce for final approval.

Step 6: Register Your Business with the Ministry of Commerce

This step involves officially registering your company. You’ll need to submit:

• Approved MISA license (if applicable).
• Articles of Association.
• Proof of company name reservation.

Once approved, the Ministry of Commerce will issue your Commercial Registration (CR) certificate, which is the legal identity of your business in Saudi Arabia.

Step 7: Open a Corporate Bank Account

A corporate bank account is essential for managing your business transactions. Choose a reputable bank in Saudi Arabia that meets your financial needs, and provide the following documents:

• Commercial Registration (CR).
• Articles of Association.
• Identification documents of shareholders or directors.

Step 8: Register for VAT and Zakat

All businesses operating in Saudi Arabia must comply with tax regulations, including:

• VAT Registration: Required for businesses with an annual turnover exceeding the VAT threshold.
• Zakat Registration: Mandatory for Saudi-owned businesses.

Ensure accurate filing to avoid penalties.

Step 9: Secure Visas and Work Permits

If you plan to hire expatriates, you’ll need to secure work visas and residency permits (Iqama) for them. This process involves:

• Applying through the Ministry of Labor.
• Meeting Saudization requirements, where applicable.

Step 10: Obtain Any Additional Licenses

Depending on your business activity, you may need additional licenses, such as:

• Municipal licenses.
• Industry-specific permits (e.g., healthcare or construction).