With Saudi Arabia opening its economy to global entrepreneurs under Vision 2030, starting a business as a foreigner is now more accessible than ever. Thanks to reforms led by the Ministry of Investment (MISA) and the end of restrictive sponsorship systems, expats can now own businesses, apply for investor visas, and tap into a booming market.
Here’s your step-by-step guide to starting a business in Saudi Arabia as a foreign national in 2025.
🏠 Step 1: Understand Legal Structures for Foreigners
Foreigners can now choose from a wider range of business structures, many with 100% foreign ownership:
| Structure Type | Description | Ownership |
|---|---|---|
| Limited Liability Company (LLC) | Most common for SMEs | 100% foreign-owned allowed in many sectors |
| Joint Stock Company (JSC) | Suitable for large or public businesses | Can be foreign-owned with board setup |
| Joint Venture | Partnership with a local | Shared ownership |
| Branch Office | Extension of a foreign company | 100% ownership (limited activity scope) |
| Regional Headquarters (RHQ) | Non-operational entity for multinationals | Special license benefits |
| Technical & Scientific Services Office (TSSO) | Non-commercial representation for foreign firms | Restricted commercial use |
📜 Step 2: Obtain a Foreign Investment License (MISA License)
Apply through the Ministry of Investment of Saudi Arabia (MISA) to legally operate.
Key Requirements:
• Valid Passport
• Detailed business plan
• Financial proof (bank statement)
• Parent company documents (for branches)
• Commercial registration certificate from country of origin
Apply at: https://investsaudi.sa/en
📆 Step 3: Three-Stage Setup Timeline (Estimated 1–3 Months)
| Stage | Duration | Key Tasks |
|---|---|---|
| Stage 1: Legal Foundation | 4–6 weeks | MISA license, name reservation, Articles of Association, CR, Chamber registration |
| Stage 2: Compliance & Staffing | 6–8 weeks | Company seal, GOSI & MoL registration, national address, GM visa, VAT setup |
| Stage 3: Activation & Operations | 4–6 weeks | Health insurance, Iqama, e-portals (Absher, Muqeem, Qiwa, Mudad), open bank account |
📝 Step 4: Register Your Business
After securing your license:
• Reserve your company name (via Ministry of Commerce)
• Register entity on Unified National Platform
• Open Saudi corporate bank account
• Register with GAZT (for taxes & VAT)
• Get Commercial Registration (CR)
📅 Step 5: Choose the Right Setup Scenario
Your path will depend on your business profile:
✨ Existing Foreign Company – Apply under industrial/service/agricultural license with full ownership
🌟 🇸🇬 GCC-Owned Company – Eligible for branch or multi-activity subsidiary
💼 Individual Foreign Founder – Apply for Entrepreneurial License with incubator/VC support
🌟 Startup Route – Startups <5 years old with endorsements may fast-track
📏 Step 6: Apply for Investor Visa or Work Permit
Saudi Arabia offers Investor Visas and residency to founders and executives.
Apply through:
• MISA or Saudi embassies
• Entrepreneur visa under Monsha’at programs
• eVisa portal (for investors or startups)
Register with:
• Mudad (payroll system)
📍 Step 7: Choose a Strategic Business Location
| City | Strengths |
|---|---|
| Riyadh | Capital hub for finance, tech, government sectors |
| Jeddah | Gateway for trade and tourism |
| NEOM | Future smart city for AI, biotech, green energy |
| Dammam/Khobar | Eastern Province for energy, logistics, manufacturing |
Incentives may be available in Economic Cities like KAEC and King Salman Energy Park.
💸 Step 8: Capital Requirements & Taxation
• Minimum Capital: From SAR 100,000 to SAR 500,000+ depending on sector
• Corporate Tax: 20% (for foreign-owned companies)
• Zakat: 2.5% (for Saudi nationals or mixed entities)
• VAT: 15% standard rate
Tip: Some sectors remain restricted—check MISA’s Negative List.
📊 Step 9: Market Entry Strategy & Support
Take advantage of:
• Startup incubators like Flat6Labs or MISK Foundation
• Public-private grants and SME Authority (Monsha'at) programs
• E-commerce and fintech licenses for digital businesses
Saudi consumers are increasingly digital-savvy—ideal for launching apps, fintech, logistics, and F&B brands.
🧠 Final Tips for Success
• Work with a local legal or business setup advisor to navigate Arabic documents and government systems
• Ensure compliance with Saudization quotas (Nitaqat system) for hiring local staff
• Use English-Arabic bilingual branding to reach wider audiences
• Set up cloud accounting and payroll to stay tax compliant
🔮 Why 2025 Is the Best Time to Start a Business in Saudi Arabia
• 100% foreign ownership allowed in many industries
• Investor-friendly climate with reduced red tape
• High-growth sectors: fintech, tourism, AI, e-commerce, healthcare
• New smart city hubs like NEOM and Qiddiya
• Expanding access to premium residency programs for entrepreneurs
📝 Conclusion
Starting a business in Saudi Arabia as a foreigner in 2025 is not only possible—it’s welcomed. With Vision 2030 accelerating reforms, you can now launch, own, and grow your business with fewer barriers and more incentives than ever before. If you have a vision, Saudi Arabia is ready for it.
