TadafulAdvisory Network

Guide

Company formation in Saudi Arabia, step by step

The usual sequence a foreign company follows to set up a Saudi entity. It is an orientation, not legal or tax advice — timelines and requirements vary by activity, so a vetted advisor should confirm your path.

  1. Step 1 · MISA

    Secure the investment licence

    Foreign shareholders usually start with the Ministry of Investment. Confirm your activity is open to foreign ownership, map it to the correct ISIC activity code, and prepare attested parent-company documents.

    • Activity eligibility and ownership level
    • Attested commercial register and financials
    • Board resolution and authorised signatory

  2. Step 2 · Ministry of Commerce

    Register the company (CR) and Articles of Association

    Reserve a trade name, finalise the Articles of Association and obtain the Commercial Registration, which gives the entity its legal existence.

    • Trade name reservation
    • Articles of Association ratified
    • Chamber of Commerce membership

  3. Step 3 · Banking

    Open a bank account and deposit capital

    Open a local corporate account with a Saudi bank and deposit share capital where your structure or activity requires it.

    • KYC on shareholders and managers
    • Capital deposit where required
    • Signing authorities set up

  4. Step 4 · ZATCA

    Register for tax, Zakat and VAT

    Register with the Zakat, Tax and Customs Authority. Foreign-owned shares are generally subject to corporate income tax (20%) and Saudi/GCC-owned shares to Zakat; VAT registration and e-invoicing (Fatoora) follow.

    • Tax identification number
    • VAT registration (15%) where thresholds apply
    • Fatoora e-invoicing readiness

  5. Step 5 · HRSD · Qiwa · GOSI

    Set up labour and workforce files

    Open the establishment file, activate Qiwa, register with GOSI for social insurance and plan Saudization (Nitaqat) before hiring or transferring staff.

    • Qiwa and Muqeem access
    • GOSI registration
    • Nitaqat quota planning

  6. Step 6 · Municipal

    Obtain operating and premises licences

    Depending on your activity, secure the Balady municipal licence, Civil Defence approval and national address before you begin trading.

    • Balady licence
    • Civil Defence approval
    • National address registration

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