How to Start a Foreign-Owned Business in Riyadh?

Riyadh, the capital city of Saudi Arabia, is rapidly becoming a hub for international business. With the country’s Vision 2030 initiative opening up multiple sectors to foreign investment, entrepreneurs and multinational companies now have a golden opportunity to establish their presence in one of the Middle East’s most promising markets.

Starting a foreign-owned business in Riyadh may seem like a complex task, but with the right guidance and support, the process can be smooth and efficient.

This guide will walk you through the key steps required to launch a foreign-owned business in Riyadh, and explain how HATEN, a trusted name in company setup services, can help you every step of the way.

1. Understand the Regulatory Environment

Saudi Arabia has made significant reforms to attract foreign investors. The Ministry of Investment of Saudi Arabia (MISA), formerly known as SAGIA, is the primary authority for issuing investment licenses to non-Saudi entities.

In recent years, the government has allowed full foreign ownership in many sectors such as technology, consulting, healthcare, and manufacturing.

Some industries remain restricted or may require additional approvals. It’s essential to first evaluate if your intended business activity falls within the permitted categories.

HATEN’s team of consultants can assist you in evaluating market entry options and sector eligibility based on the latest regulations.

2. Choose the Right Legal Structure

Foreign investors can select from several business structures, including:

• Limited Liability Company (LLC): A popular option for small to medium-sized businesses, offering flexible ownership and limited liability.
• Branch Office: Allows an existing foreign company to operate in Riyadh without forming a new legal entity.
• Joint Stock Company: Suitable for large enterprises aiming to raise capital or list on the stock exchange.
• Technical and Scientific Office (TSO): Designed for foreign manufacturers that provide after-sales services or technical support.

Each option has unique requirements and benefits. HATEN’s experts guide clients in selecting the structure that aligns with their goals and operational needs.

3. Apply for the MISA Investment License

The next critical step is to apply for a foreign investment license through MISA. Required documents typically include:

• Company profile
• Financial statements
• Board resolution approving investment
• Passport copies of shareholders
• Commercial registration from the country of origin

Navigating these requirements can be time-consuming. HATEN’s experienced consultants streamline this stage by preparing and submitting all required documentation, reducing the risk of delays or rejections.

4. Reserve the Company Name and Prepare Legal Documents

Once the investment license is granted, you must reserve your company name with the Ministry of Commerce. After that, prepare and notarize the Articles of Association (AOA) and register the business with the relevant authorities, including:

• Chamber of Commerce
• Zakat, Tax and Customs Authority (ZATCA)
• General Organization for Social Insurance (GOSI)

Each department has its own processes and timelines. HATEN ensures coordination across all agencies to prevent bottlenecks and help you launch faster.

5. Open a Corporate Bank Account

Opening a business bank account in Saudi Arabia involves meeting strict due diligence and KYC (Know Your Customer) requirements. Banks typically request copies of all incorporation documents, MISA license, and proof of address.

Thanks to its relationships with major Saudi banks, HATEN supports clients in preparing the correct paperwork and facilitates introductions to financial institutions that cater to international businesses.

6. Secure Local Municipality Licenses and Office Space

You will need additional licenses and permits from the Riyadh Municipality, especially if your business involves physical retail, warehousing, or client-facing operations. You must also select a commercial office address that complies with local zoning rules.

HATEN offers real estate advisory, helping clients find cost-effective office spaces in business-friendly districts across Riyadh.

7. Begin Hiring and Start Operations

After completing the registration process, your company is officially ready to operate. You can now hire local and international employees, register them with GOSI, and start building your team.

Saudi Arabia promotes Saudization, a policy that requires businesses to employ a percentage of Saudi nationals. HATEN provides HR advisory and staffing solutions to help you meet compliance while building a capable team.

Foreign Company Setup in Riyadh Made Simple with HATEN

Launching a foreign-owned business in Riyadh involves many moving parts—from legal documentation to operational readiness. HATEN simplifies the entire process through its full-service approach. From initial consultations and MISA licensing to final approvals and office setup, HATEN ensures you avoid costly mistakes and focus on growing your business.

Their team provides tailored solutions for foreign company setup in Riyadh, making it easier for international firms to enter the Saudi market confidently and compliantly.

Final Words

Riyadh is not just the political capital of Saudi Arabia; it’s a fast-emerging commercial powerhouse. Foreign investors who act now can gain a first-mover advantage in sectors that are undergoing rapid transformation.

With the right partner like HATEN by your side, starting a foreign-owned business in Riyadh becomes a well-guided, transparent, and rewarding experience. Let HATEN turn your business vision into a success story in the heart of the Middle East.