Starting a business in Saudi Arabia can be a highly rewarding endeavor, especially given the country’s economic diversification goals under Vision 2030. Below is a step-by-step guide for both locals and foreign investors on how to start a business in Saudi Arabia. For more information please visit Business setup in saudi arabia

🧾 Step-by-Step Guide to Starting a Business in Saudi Arabia

Step 1: Choose Your Business Activity

  • Identify the business sector and specific activity you want to engage in.
  • Ensure the activity is allowed in Saudi Arabia and determine if any special licenses are required.

📌 Note: Certain sectors are restricted to Saudi nationals or require a local partner.

Step 2: Decide the Business Structure

Choose a legal form:

  • Sole Proprietorship
  • Limited Liability Company (LLC)
  • Joint Stock Company (JSC)
  • Branch of a Foreign Company
  • General Partnership

LLCs are the most common for foreign investors.

Step 3: For Foreign Investors — Obtain MISA License

If you’re a non-Saudi investor, you must:

  1. Apply for an investment license from the Ministry of Investment (MISA).
  2. Submit documents like:
    • Company profile
    • Feasibility study
    • Financial statements
    • Passport copies of shareholders

💡 Pro tip: MISA often requires a minimum capital for certain activities.

Step 4: Reserve a Trade Name

  • Register your business name through the Ministry of Commerce (MoC) portal.
  • The name must:
    • Be unique
    • Not violate Sharia or public morals
    • Reflect the nature of the business

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

  • Create your company’s Articles of Association.
  • Submit and notarize it via MoC’s online platform or in person.

Step 6: Register with the Ministry of Commerce

  • Once AOA is approved, complete commercial registration (CR).
  • Obtain the Commercial Registration Certificate (CR).

Step 7: Register with the Chamber of Commerce

  • Register your business with the local Chamber of Commerce.
  • This is mandatory for all commercial activities.

Step 8: Open a Corporate Bank Account

  • Use your CR and MISA license (if foreign-owned) to open a bank account.
  • Deposit any required minimum capital.

Step 9: Register for Tax and VAT

  • Register with the Zakat, Tax and Customs Authority (ZATCA).
  • If annual revenue exceeds SAR 375,000, VAT registration is mandatory.

Step 10: Get Necessary Municipal and Sectoral Licenses

  • Obtain a municipal license from your city’s Baladiyah (municipality).
  • For specific sectors (e.g., education, healthcare, tourism), get relevant ministry approvals.

Step 11: Hire Employees and Register with GOSI

  • Register with the General Organization for Social Insurance (GOSI).
  • Comply with Saudization/Nitaqat regulations, which mandate hiring Saudi nationals in certain ratios.

Step 12: Launch Your Business

  • Set up operations
  • Begin marketing
  • Ensure full compliance with labor laws, Saudization, and tax regulations

✅ Additional Tips

  • Consider hiring a local lawyer or consultant for smoother processing.
  • Keep an eye on Vision 2030 incentives, especially in tourism, tech, and manufacturing.
  • Utilize platforms like Monsha’at (Small & Medium Enterprises Authority) for support.