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SaSaudi Arabia Subsidiary.






Country Capital



Saudi riyal (SR) (SAR)

Growing your business in Saudi Arabia is an exciting time for your company. However, instead of celebrating a new milestone, you might have to learn Saudi Arabia subsidiary laws, hire employees, and ensure you’re compliant at all stages of the process.

Before you can begin recruiting, you have to establish a subsidiary to operate legally in the country. G-P simplifies the process with our Global Growth Platform™ backed by our team of in-region HR and legal experts. We can help you begin hiring in just a few minutes instead of a few months, regardless of entity status.

How to establish a Saudi Arabia subsidiary

Before establishing a Saudi Arabia subsidiary, companies should consider certain factors that could impact where they locate an office and what type of local legal regulations that need to be followed. The industry, type of business they want to operate, and any existing trade agreements or relationships they must to honor should also be considered. Companies may need to hire a local agent or distributor to make direct sales to the private sector outside the country since the law might not allow an international company to operate as a commission agent.

Saudi Arabia’s provinces can have different rules and regulations. It’s essential that companies research the province where they plan to establish a Saudi Arabia subsidiary beforehand to make the best business decision.

To establish a subsidiary, companies have to go through multiple steps, such as reserving a company name through the Ministry of Commerce and Industry, which can be done online. They also have to submit articles of incorporation/association to the Ministry and notarize them with a stamp.

Saudi Arabia subsidiary laws

Once companies decide to grow their business in Saudi Arabia, they have to become well-versed in the country’s subsidiary laws or hire someone to help through the incorporation process. Some of the legal requirements include opening a bank account with a bank in Saudi Arabia, obtaining a business license, and officially registering the company’s address.

Certain portions of the Saudi Arabia subsidiary setup process will require paying fees, including:

  • Publication of the summary of the articles of incorporation: SAR 650
  • Forming an official company seal: SAR 50
  • Membership to the Chamber of Commerce: SAR 2,000

After companies pay for the publication of the summary of their articles of incorporation, they must submit the documents to the Ministry of Commerce and Industry to get a Certificate of Registration. They will complete the entire process by registering the new entity with the Ministry of Labor, the General Organization of Social Insurance, and the Department of Zakat.

Benefits of establishing a Saudi Arabia subsidiary

The biggest benefit of establishing a Saudi Arabia subsidiary is that companies can begin legally hiring within the country. Once the incorporation process is complete, they can hire employees, start conducting business, and run payroll. However, they also might have to learn all of the country’s complicated subsidiary laws and ensure compliance.

Other important considerations

If companies decide to establish their Saudi Arabia subsidiary alone, they might spend a significant amount of time and money throughout the process. It’s best to set aside a budget for all the steps that require payment and remember multiple deadlines to ensure they do not end up owing more.

Enter new markets with G-P — no new entities required.

Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.

Get in touch today to learn more about how we can streamline the global growth process.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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