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Foreign Investment Company Formation Services and Routes in Saudi Arabia
Compare the four routes, service, industrial, trading, and RHQ and Entrepreneur, and choose the one that fits your activity.
How do you choose the right investment route?
Your activity decides your route and its conditions: ownership percentage, capital, documents and the authorities involved. Every route starts with investment registration at the Ministry of Investment, followed by Commercial Registration through the Saudi Business Center.
Under the previous system, the investment licence cost SAR 2,000 as a basic licence fee plus a SAR 10,000 Investor Services subscription in the first year, rising to SAR 60,000 in the following years. Under the current Investment Law: the process has become registration in the National Investor Register, collection of the former high annual subscriptions (SAR 10,000 and SAR 60,000) has been suspended, and the registration fee is set officially by the Ministry of Investment in the payment notice issued when the application is approved, according to the activity classification.
Comparison of foreign investment routes
| Item | Service | Industrial | Trading | Entrepreneur / RHQ |
|---|---|---|---|---|
| Ownership | 100% | 100% | 100%, or 75% with a 25% Saudi partner | 100% |
| Minimum capital | No fixed minimum in most activities | Based on project size and study | SAR 30,000,000 for 100%, or SAR 26,666,667 with a Saudi partner | No fixed minimum |
| Key documents | Parent company CR and last-year financial statements, attested | Parent CR and financial statements + Sinaei requirements | 3 attested commercial registrations (for 100%) + financial statements | Endorsement from a Saudi incubator, accelerator or university (Entrepreneur), or proof of presence in two countries (RHQ) |
| MISA fee | Set in MISA’s payment notice on approval (the SAR 10,000 / 60,000 subscription is suspended) | Set in MISA’s payment notice on approval (the SAR 10,000 / 60,000 subscription is suspended) | Set in MISA’s payment notice on approval (the SAR 10,000 / 60,000 subscription is suspended) | Set in MISA’s payment notice on approval (the SAR 10,000 / 60,000 subscription is suspended) |
| Typical timeline | Up to 10 working days for registration + 72 hours for CR | 2-5 days for the initial licence + 30-90 days for land and permits | Up to 10 working days for registration + 72 hours for CR | Up to 10 working days for registration + 72 hours for CR |
| Key benefits | Premium Residency holders exempt from foreign CR and financial statements | Customs exemption; SIDF up to 50% (75% in promising regions) | Access to wholesale and retail with full ownership | RHQ: 0% income and withholding tax for 30 years, 10-year Saudization exemption |
Sources: Ministry of Investment Investor Guide (13th edition, 2026), the Commercial Registration Law, the Saudi Business Center, the Ministry of Industry and Mineral Resources and the Saudi Industrial Development Fund. Last checked: 3 November 2026.
Details of each route
Service company setup
Activities, conditions, fees and timelines for 100% foreign-owned service companies.
Industrial company setup
Industrial licence stages on Sinaei, exemptions and financing.
Trading company setup
Capital options for wholesale, retail and e-commerce.
RHQ and Entrepreneur licence
Conditions and benefits of the Entrepreneur licence and the RHQ licence.
Questions about setup routes
Has the SAR 62,000 foreign investment licence fee been cancelled?
Its collection has stopped. Under the previous system the cost was a SAR 2,000 basic licence fee + a SAR 10,000 Investor Services subscription in the first year, then SAR 60,000 in following years (SAR 62,000 a year with the licence fee). Under the new Investment Law the process became registration in the National Investor Register, the SAR 10,000 and SAR 60,000 subscriptions were suspended, and the registration fee is set in MISA’s payment notice on approval according to the activity classification.
What is the difference between trading setup and the Entrepreneur licence?
Wholesale and retail trading (including online stores selling goods directly) is subject to the rules and capital of the trading activity (SAR 30 million for 100% ownership, or SAR 26,666,667 with a 25% Saudi partner). The Entrepreneur licence is reserved for technology and innovation startups and innovative digital platforms holding an endorsement letter from a licensed Saudi incubator or accelerator, a Saudi university, or a patent. It is not granted for conventional trading.
Does a factory need a licence separate from investment registration?
Yes. After investment registration and Commercial Registration, the industrial licence is issued on the Ministry of Industry and Mineral Resources’ Sinaei platform, and the project moves through three statuses: Applicant, Under construction, then Producing.
What are the RHQ conditions?
A Regional Headquarters (RHQ) licence for multinational companies (with at least two branches or subsidiaries in two different countries other than Saudi Arabia and the parent’s home country) gives a 0% rate of income tax and withholding tax on qualifying activities for 30 years, a 10-year exemption from Saudization (Nitaqat) quotas, and work visas for RHQ staff with no preset numerical cap (based on actual need and the approved business plan). The RHQ must employ at least 15 full-time staff, including 3 executive-level managers, within the first year of the licence.
Not sure which route fits?
Send us your activity and the parent company’s country, and we will confirm the route and the current costs.