How to Start a Business in Saudi Arabia in 2025?

Do you want to start a business in the heart of the Middle East Saudi Arabia in 2025? Well, the opportunity is right now!

But where to start? 

Considering all the embassy websites you will need to visit, starting a business in the KSA is a multi-step process. First, you must prepare your company’s incorporation documents and then, register with the Ministry of Investment in Saudi Arabia.

Let’s find out how to start a business in Saudi Arabia and the detailed necessary steps. 

What’s the Business Situation in Saudi Arabia Right Now? 

After launching the Saudi Arabia Vision 2030, the kingdom has become a business hub for investors. 

Saudi Arabia’s Vision 2030 is to diversify the economy with business, work opportunities and right investments, beyond oil exports.

Launched in 2016, it introduced some key projects happening in Saudi Arabia, including NEOM (A futuristic $500 billion megacity), The Red Sea Project (Tour Destination), and Oxagon (Hexagon shaped industrial city). 

These mega projects made Saudi Arabia an ideal place for entrepreneurs and investors in the middle east. 

Beside the vision 2030 project, Saudi Arabia is rapidly growing its economy and will improve more in the upcoming days, 

• The GDP is expected to grow by 4.5% in 2025, led by the non-oil businesses.
• Growth of 4.5% means that people will have more money to spend, boosting Saudi’s economy. 
• Saudi Announced a 30-year tax exemption package (No corporate income tax) for foreign companies. 
• They are offering foreign investors a low corporate tax rate of 15%.
• KSA is now investing in different sectors such as technology, health care, agriculture, tourism, pharmaceuticals, technology and many more.
• Renewable energy in Saudi Arabia has increased from 2015 by 82.4%, and now it has hit 3 Gigawatts.

These statistics reflect how much development Saudi Arabia will receive in the next few years. 

Important Documentation Required Before Starting a Business

Foreign investors must have the proper documents before starting a business in the KSA (Kingdom of Saudi Arabia). These documents prove that you are ready to perform your business operations in a legal way.

Here are all the initial documents, 

• A license from the Ministry of Commerce and Industry (MOCI) or a Commercial Registration (CR) issued by the Ministry of Commerce and Industry.
• MOCI approved Memorandum of Association (MoA)
• MOCI-approved Articles of Association (AoA)
• General manager’s passport copy
• Incumbency Certificate
• Shareholders and directors’ passport copy
• Bank’s reference letter

With these documents ready, you will be able to perform your business operations smoothly in Saudi Arabia. 

Do You Need Approval from Other Authorities in Saudi Arabia?

Yep, company formation in Saudi Arabia involves getting approval from different Government authorities and embassies. 

Depending on the business setup, foreign companies are required to get permission for different kinds of licenses, such as business licenses, investment licenses and many others.

We linked some of them bellow, 

Approval/Permit	Responsible Ministry/Authority	Details
Business License	Ministry of Commerce	Approves the commercial registration to operate legally in the Kingdom of Saudi Arabia
MISA/SAGIA License	Ministry of Investment (MISA)	A MISA Investor License is necessary for foreign companies to start their business in Saudi Arabia
Trade Name Reservation	Ministry of Commerce	To reserve a unique trade name for your business.
Municipality Permit	Local Municipality (Baladiyah)	Mandatory for opening offices, shops, or business facilities.
Zakat, Tax, and VAT Registration	Zakat, Tax and Customs Authority (ZATCA)	Required for tax compliance and VAT-related operations.
Industrial License	Ministry of Industry and Mineral Resources	Needed for business setup related to manufacturing or industrial operations
Health and Safety Permits	Ministry of Health and General Directorate of Civil Defense	For businesses in the food, healthcare or manufacturing or industry where there is a risk to public safety.
Labor Registration	Ministry of Human Resources and Social Development	Needed to hire workers and follow labor rules
Social Insurance Registration	General Organization for Social Insurance (GOSI)	Required for employee insurance and benefits.
Environmental Permits	Ministry of Environment, Water, and Agriculture	Necessary for business setup that may impact the environment, such as construction or manufacturing.

Saudi Arabia has opened the door to different businesses and entrepreneurs, so the Government raised the security measures. For this matter foreign companies need to go through complex documentation processes to establish their business in Saudi Arabia. 

Commercial registration, investment license and other legal requirements ensure that your business runs smoothly in the Saudi market by following the rules and regulations of the Saudi Government. 

How to Start a Business in Saudi Arabia within 7 Steps 

Ohh, keep in mind that the processes we shared in this article are approved by the KSA authorities. 

Even though most of these steps may feel simple, visiting different authority websites and collecting paperwork can be tiresome. 

1. Select Your Business Niche and Choose a Name to Register

Saudi Arabia only gives registration to specific business types. So, selecting your business setup is crucial.

Some of the registered business types are, 

Regional Headquarters (RHQ):

Regional headquarters is to oversee your business operations in Saudi Arabia and nearby markets.

Limited Liability Company (LLC):

A limited liability company is perfect for small to medium business setups. In this business setup, you need at least 2 shareholders. One Local (UAE National) Shareholder, and One Foreign Shareholder, who can be either an Individual or Corporate. 

Subsidiary of a Foreign Company:

In a subsidiary, you can expand your business in Saudi Arabia while staying connected to your mother company abroad.

Joint Stock Company (JSC):

A joint stock company allows you to have shareholders, which is great for large companies raising public capital.

Technical and Scientific Services Office (TSSO):

The technical and scientific services office is for research, development, or offering technical services without direct sales in Saudi Arabia.

After selecting your business setup, apply for a business license. Here is a detailed discussion about which business activity needs what licenses –

Business Activity		Name of the License
1	Management Consulting/IT Services/Tourism/Training etc.	Service License
2	Heavy and Light Industries	Industrial License
3	Real Estate Business	Real Estate License
4	Wholesale and Retail Business	Trading License
5	New Business Entrepreneurs	Entrepreneur License
6	Recruitment Agency	Recruitment License
7	Audio/Visual Business	Audio-Video License
8	Import of Meat	Certificate of “Halal” Meat
		Official Health Certificate
9	Import of Seeds and Grains	Certificate of Inspection
		Phytosanitary Certificate
		Seed Analysis Certificate
		Certificate of Weight
10	Animal Fodder Additive	Certificate of Free Sale
		Product Registration Certificate
		Certificate of Analysis
		Product Safety Data Sheet
11	Shipment of Livestock	Certificate of Weight
		Health Certificate issued by USDA
		Health Certificate issued by a Veterinarian
		Pedigree Certificate issued by USDA
		Production Records
		Declaration of Inspection and Acceptance
12	Import of Horses	Certificate of Origin issued by the company raising and breeding horses
		Health Certificate confirming that the horses are free from any disease
13	Vegetable and Fruit	Certificate of Free Sale

After choosing the niche you must choose a unique name for your company. A good name is the initial step of branding. 

Many foreign companies like PepsiCo, Unilever, and Siemens are already established in Saudi Arabia. Register your company name to make it official. For example, your company name could be DesertBloom Trading Co.

2. Register Your Business from Saudi Arabia’s Official Business Hub

To register your business in, first visit the Saudi Arabia Ministry of Investment website. In this website you will find the easy process to register your business. 

Follow the below steps to finish the first part, 

• Create an account on the MISA website. 
• Submit the required documents, including your business plan and identification.
• After that, apply for MISA Investor License.
• Now wait for MISA to review your application and provide feedback or approval.

3. Acquire an Entity File from Ministry of Human Resources and Social Development

After registering your business, you must get an entity file from the Ministry of Human Resources and Social Development. The entity file is important for hiring employees for your business. 

The process is the same as registering your business. First, you have to go to the website of the Ministry of Human Resources and Social Development. Then, you must create an account, fill out the application and submit the required documents.

Officials will review your application and notify you after the approval.

4. Register for Zakat

Zakat is a type of tax in the Kingdom of Saudi Arabia. To follow the rules of the Saudi Government businesses must register for Zakat. 

Without registering for Zakat, you can not get approval for your business operation. Zakat helps support the people in need. Paying Zakat shows that your business cares about social responsibility. 

To register for Zakat, the process is the same as before, simply create an account on the ZATCA website. Complete the online application for registration and upload the required documents. 

5. Register the Business’s Entity through General Organization for Social Insurance (GOSI) Saudi Arabia

General Organization for Social Insurance (GOSI) provides social insurance for employers and ensures that they also receive benefits. 

The steps for registering your business’s entity through GOSI are the same as the previous ones.

6. Register Your Business’s National Address

Visit the SPL Online website. 

Then, create an account. In the national address registration section, submit all the required documents.

Enter your business’s location details, including street name, building number, and any other required information.

The annual fees for the national address are,

• 500 SAR annually for individual institutions. 
• 1,000 SAR annually for limited and contributed companies.
• 1,000 SAR annually Governmental and private agencies. 

7. Finally, Complete the Chambers of Commerce Registration Process

This is the final step, you will need to Identify your business location. Each region in Saudi Arabia has its own chamber, such as Riyadh, Jeddah, or Dammam. 

Go to the  Chamber of Commerce website for the specific location.

Now follow the rest of the steps, 

• Create an account.
• Fill the form with necessary documents, such as your Commercial Registration (CR) and identification.
• Pay the fees. The amount depends on your business and location.
• Submit your application.

The whole process already looks so complicated right, but you can simply skip all these steps and set up your business with BlackSwan. 

FAQ

Start Your Dream Business in Saudi Arabia! Call +971 56 658 2477 Today!

As discussed earlier, starting a business in Saudi Arabia in 2025 is filled with opportunities if you follow the proper steps and fulfil the legal requirements.

This guide covered everything you need to know about how to start a business in Saudi Arabia in 2025. From choosing your niche to getting approvals, it’s all about staying focused and organised. 

With the right effort, you can tap into the growing opportunities in the Saudi market. 

Thank you for your time!