Foreign Company Branch in Saudi Arabia
Easy and Fast Foreign Branch company Registration in Saudi Arabia with SetupZ
What is a Foreign Branch Setup in Saudi Arabia?
A foreign branch serves as an extension of its parent company and must adhere to the laws, regulations, and requirements of Saudi Arabia while conducting business in the country. Unlike a subsidiary or joint venture, a branch is not a separate legal entity incorporated under Saudi law.
Establishing a branch office offers foreign business owners a fast and cost-efficient way to enter the Saudi market. While branch offices can perform the same functions and operations as the parent company, they are not permitted to engage in trading activities.
Why Saudi
Benefits of Setting Up a Branch Office in Saudi Arabia
Establishing a branch of a foreign company in Saudi Arabia provides a direct, efficient, and recognized business setup. Here are the key features that make it a preferred option for international companies:
100% Foreign Ownership
A branch office in Saudi Arabia enables the foreign company to retain full control and ownership.
Convenient Setup Process
The process of incorporating a branch office is significantly simpler compared to establishing other types of business entities
Business Growth
A branch office offers a structured and cost-efficient approach to expand your business and enhance brand presence in Saudi Arabia.
Attractive Tax Environment
Saudi Arabia offers a low corporate tax rate (20%) for foreign entities and no personal income tax, resulting in significant savings.
What are the requirements to setup a branch in Saudi Arabia?
Setting up a branch office in Saudi Arabia involves specific financial and operational obligations essential for legal and regulatory compliance. These requirements ensure that foreign companies demonstrate financial stability, long-term commitment, and adherence to local laws while operating in the Kingdom
Parent company history
The parent company must be operational for a minimum of three years before establishing a branch in Saudi Arabia, with supporting documents like financial statements, business licenses, and incorporation records required as proof
Legal address
Although a branch office is an extension of the parent company, it must maintain a legal address in Saudi Arabia for documentation, communication, and tax-related benefits.
Bank account
A Saudi bank account must be opened in the parent company’s name to facilitate financial transactions, tax payments, and operational expenses.
Share capital
MISA requires foreign branches to have a minimum capital of SAR 500,000, with higher amounts for certain activities. Branches must also reserve 10% of annual profits until the statutory reserve reaches 30% of original capital.
Schedule Free Consultation with our Business Advisor
Our team of seasoned business setup specialists is ready to support you every step of the way. Schedule your FREE consultation call today and get clear answers to your most important questions
- Which business structure best aligns with your goals?
- Which Saudi jurisdiction is the best fit for your business type?
- How can your business take advantage of Saudi Arabia’s tax benefits?
- What are the essential steps to ensure a successful business formation?
Pricing Plans
Easily Launch Your Foreign Branch in Saudi Arabia
Select the business setup and we will give you best business plan for your need
Basic Plan
Best for startups with limited needs and a streamlined setup.
SAR10,000+ Govt Fees
- Company Type: LLC / Branch
- Company Documents Review
- Power of Attorney (POA) Preparation
- Local (Saudi) Attestation
- Arabic Translation (Saudi)
- MISA License
- Name Reservation
- Articles of Association (AOA) Submission
- Commercial Registration
Standard Plan
Ideal for businesses seeking a complete setup and initial compliance.
SAR17,000+ Govt Fees
Everything in the Basic Plan, plus:
- Chamber of Commerce Registration
- GM Visa, Iqama, and Re-Entry
- VAT Registration
- HRSD File Opening
- GOSI Registration
- Muqeem Activation
- Mudad Registration & Setup
- Qiwa Platform Setup
- National Address Registration
- GRO/PRO Service: 1 Month
Premium Plan
For foreigners seeking a fully managed, end-to-end business setup solution.
SAR25,000+ Govt Fees
Everything in the Standard Plan, plus:
- Free Bank Account Opening
- Municipality License Assistance
- Free Virtual Office: 3 Months
- Accounting Services: 3 Months
- Tax Filing Services: 3 Months
- GRO/PRO Service: 3 Months
Need help deciding which package is right for you?
Documents Required to Open a Branch Office in Saudi Arabia
- Business license of parent company
- Memorandum of association
- Audit report of your parent company
- Shareholder's certificate
- Copy of shareholder's passport
Let us guide you through the paperwork step-by-step.
Looking to Register Your LLC Company In Saudi Arabia ?
At Setupz, we specialize in helping businesses like yours expand easily to Saudi markets.
Frequently Asked Questions (FAQs)
If your question is not addressed here, please feel free to reach out to us. We value your inquiry.
What is a foreign branch in Saudi Arabia?
A foreign branch is an office of your company from another country. It can do business in Saudi Arabia but is not a separate company.
Can I own 100% of my branch in Saudi Arabia?
Yes. You can fully own your branch. No local partner is needed.
What businesses can a branch office do in Saudi Arabia?
A branch can do most business activities, but it cannot do trading (buying and selling goods).
How long does it take to open a branch?
It usually takes a few weeks if all documents are ready.
Can SetupZ help me with the process?
Yes. We guide you step by step and handle all paperwork.