Back to Blogs

December 16, 2025

4 min read

Step-by-Step Guide for Foreign Investors Establishing a Company in Saudi Arabia (2026)

Your roadmap to 100% foreign ownership and business success in the Kingdom.

Saudi Arabia’s rapid transformation under Vision 2030 has made the Kingdom one of the most attractive business destinations in the Middle East. With 100% foreign ownership allowed in most sectors, streamlined digital processes, and booming demand across multiple industries, establishing a company in Saudi Arabia is now clearer and more efficient than ever.

Below is a practical step-by-step guide for foreign investors entering the Saudi market in 2026 with start easy.

Step 1: Check Your Activities, Approvals, and Restrictions

Before choosing a structure or applying for a license, you must confirm whether your intended activities are allowed for foreign ownership and whether they require any pre- or post-approvals.

When reviewing your activities, check:

  • Whether the activity is allowed for 100% foreign ownership or requires a minimum Saudi share.
  • Whether there is any minimum capital requirement — either for full foreign ownership or when a Saudi partner is involved.
  • Whether there are pre-registration requirements, such as experience, audited financials, or regulator approvals.
  • Whether the activity has post-registration obligations, such as Saudization levels, additional permits, or ongoing compliance.

Getting this step right ensures you follow the correct setup pathway and avoid delays.

Step 2: Choose the Right Investment Route

Once your activities are confirmed, select the investment route under which you will establish your company:

  • Regular Investment Registration (MISA License): The standard route for most foreign businesses.
  • Entrepreneurial License: For startups and founders without an existing foreign entity.
  • Regional Headquarters (RHQ) License: For multinational groups setting up a regional management hub in Riyadh.

Select Your Legal Form After selecting your investment route, you will choose the legal form. The two most common forms are:

  1. LLC: A separate Saudi legal entity. Ideal if you plan to add shareholders, enter joint ventures, or restructure ownership later.
  2. Branch: An extension of the foreign parent company, operating directly under the parent’s identity.

Step 3: Reserve the Trade Name

The next step is to reserve your company’s trade name through the Ministry of Commerce portal.

The trade name must comply with Saudi naming rules and will appear on your Commercial Registration (CR), invoices, and contracts. Reserving it early helps avoid delays during incorporation.

Step 4: Obtain the MISA Foreign Investor License

With your structure confirmed, apply for the MISA Foreign Investor License. This approval is mandatory for all foreign-owned companies.

The application includes submitting parent company documents (for regular/branch setup) or a support letter from an approved incubator (for Entrepreneurial licenses). Once approved, you can move to formal incorporation.

Step 5: Draft the AoA and Apply for Commercial Registration (CR)

With your MISA license issued, you must formally incorporate your company through the Ministry of Commerce.

This stage includes:

  • Drafting the Articles of Association (AoA): Outlining ownership structure, capital, and governance.
  • Issuing the Commercial Registration (CR): Once issued, your company is officially established as a legal entity in Saudi Arabia.

Step 6: Apply for the General Manager (GM) Visa

After incorporation, the General Manager must obtain a Saudi work visa and Iqama (residency permit).

The GM’s Iqama is essential to:

  • Operate government portals (Qiwa, GOSI, ZATCA).
  • Open bank accounts.
  • Sign official contracts.

Step 7: Register on Mandatory Government Portals

Once the GM has an active Iqama, the company must register on key government portals for compliance and hiring:

  • ZATCA: Tax and VAT registration.
  • GOSI: Employee social insurance.
  • Qiwa: Labor contracts, Saudization, and HR services.
  • Mudad: Payroll and wage protection.
  • Muqeem: Visa issuance and residency management.
  • Chamber of Commerce: Mandatory membership activation.

Step 8: Open a Corporate Bank Account

You can now open a corporate bank account to receive payments and pay suppliers. Banks typically require:

  • Commercial Registration (CR) & MISA License.
  • Articles of Association (AoA).
  • General Manager’s Iqama and ID.

Step 9: Start Operating the Business

With all foundations laid, you are ready to begin full operations:

  • Issue employee visas and Iqamas.
  • Sign lease agreements for offices or facilities.
  • Obtain any required post-approvals (for regulated sectors).
  • Onboard employees and commence commercial activities.
Why start easy?

start easy. is built on two principles: integrity and simplicity. We give honest, clear guidance—and make the entire Saudi setup process straightforward, efficient, and built for long-term success.

Start the right way. Start smart. start easy.

Ready to begin? click Get Started and receive your instant proposal.

Have specific questions? Talk to a Business Setup Expert today.

Explore Setup Process to understand step-by-step business setup process in Saudi Arabia.

Related Blogs

View All

How would you rate your experience?

Hate

Love

start-easy.com is an independent private consultancy platform that assists businesses in setting up operations in Saudi Arabia and other locations. We are not a government body or do not represent any Government agency

Registered Office

Olaya Towers, Tower B, Intersection of Tahlia Street & Olaya Street, Riyadh, 11523. Saudi Arabia

Working Hours

We typically work 24 hours to make your life easy. 😊

easy@start-easy.com
+966 53 54 55 461

Start Easy

2026,

All rights Reserved

Saudi Arabia Business Setup Guide for Foreign Investors (2026) | start easy.