About Saudi Arabia
The Kingdom of Saudi Arabia (KSA) is one of the fastest growing countries in the world, driven by major economic reforms, large-scale investment projects and rapid diversification beyond oil. It is now a high-growth market that offers significant opportunities for companies across a range of sectors.
In 2016, the government launched ‘Saudi Vision 2030’ – a strategic plan to modernise the economy and improve quality of life for citizens and residents. The ease of doing business in the Kingdom has been improved through deregulation and privatisation, while the government has been driving investment in sectors such as infrastructure, technology, logistics, renewable energy, manufacturing, health, education, tourism, recreation and tourism.
Saudi Vision 2030 now informs all of Saudi Arabia’s business and economic decisions. To support long-term economic growth, new cities, Special Economic Zones (SEZs), technology hubs and entertainment zones are being built These projects are creating jobs, attracting skilled workers and encouraging new businesses to enter the market.
As a result, the KSA’s non-oil economy has grown almost twice as fast as the oil-economy over the past 14 years, seeing its share of share of Gross Domestic Product (GDP) increase from 40% in 2010 to 55% in 2025.
The rights of investors were enhanced under the new Investment Law and regulations, which came into force in February 2025. The Law provides that foreign investors will receive the same treatment as local investors under comparable circumstances. Investors can freely transfer funds related to their investments, such as profits and dividends, within and outside the Kingdom, subject to compliance with relevant laws.
Previously foreign investment was restricted to legal entities only. The new Investment Law broadens the definition of a ‘foreign investor’ to encompass both legal and natural persons. Foreign investors must register with the Ministry of Investment of Saudi Arabia (MISA) before engaging in any investment activities within KSA but are no longer required to obtain a MISA licence.
Sovereign supports international investors and regional companies that want to establish or expand operations in Saudi Arabia. From our office in Riyadh, the Saudi capital, we guide clients through all aspects of business registration in Saudi Arabia, from incorporation, licensing, visa and residency procedures, through to the various post-business set-up registrations and reporting necessary for ongoing compliance and business success.
Our local experience and global reach help ensure that each business is properly structured and aligned for Saudi regulation and international efficiency. The KSA presents huge opportunities for investment and business growth and is now welcoming foreign investors. Sovereign, in partnership with our strategic collaborators, can assist you to seize these opportunities.
KSA business setup and company registration
Starting a company in Saudi Arabia involves several government bodies, and coordination between them can take time without local expertise. Sovereign provides end-to-end support throughout the incorporation process. The key authorities are the MISA, the Ministry of Commerce (MoC) and the Chamber of Commerce.
Typical steps include:
Sovereign manages each stage directly with the relevant authorities, ensuring that applications move forward smoothly and on schedule. We will also advise on choosing the right company structure, understanding ownership rules and meeting local staffing and substance requirements once operations begin.
Company types in Saudi Arabia
Commercial registration and licensing fall under the oversight of MISA and the MoC. MISA, previously known as the Saudi Arabian General Investment Authority (SAGIA), is the first point of approval for new entities and regulates foreign investment and business setup.
The Limited Liability Company (LLC) remains the most common choice for foreign investors because it allows full foreign ownership from the outset. Other formats are available depending on business goals and scale, including joint stock companies, branch offices, sole establishments and the newer Regional Headquarters (RHQ) structure for multinational groups managing Middle East operations.
Main company types include:
Sovereign will assist clients to evaluate which legal structure best suits their objectives, and will then complete all incorporation, licensing and post-registration procedures on their behalf.
Special Economic Zones (SEZs)
To attract targeted investment and promote advanced industries, Saudi Arabia has launched a series of Special Economic Zones (SEZs) under Saudi Vision 2030. Administratively, SEZs fall under the jurisdiction of the Economic Cities and Special Zones Authority (ECZA).
Saudi Arabia’s free zones aim to strengthen the non-oil economy, promote economic diversification and knowledge transfer, empower supply chain sectors, create employment and incubate emerging industries in the Kingdom, through a combination of competitive incentives, a conducive environment for investors and providing the right regulatory framework for growth and development.
The Kingdom currently hosts five SEZs:
Additional SEZs are being developed to serve renewable energy, industrial and technology-based sectors. Part of the National Investment Strategy, the SEZs feature special legislative frameworks and regulations tailored for qualitative investment in certain economic activities. Typical incentives include:
Sovereign works closely with MISA and other regulators to help clients identify the most suitable free zone, secure approvals and set up compliant operations within these growth areas.
How Sovereign can assist
Company setup in Saudi Arabia requires a clear understanding of the Saudi market, the registration process and the right network of in-country support for business success. Sovereign provides both. Our team will handle documentation, commercial registration, licensing, tax registration, company bank account and every administrative requirement from conception through to operational launch.
An initial consultation with our Riyadh-based team will clarify what the setup involves, which is the legal entity best suited to you, the expected timeframe and associated costs for the relevant business activity. From there, we will manage the registration and post-incorporation procedures with government authorities, so that clients can focus on growing their business and developing opportunities in the Kingdom.
Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
