Branch of Foreign Company
Branch of a Foreign Company in Saudi Arabia
Saudi Arabia is one of the fastest-growing investment destinations in the Middle East, offering strong opportunities for established international businesses. Setting up a Branch of a Foreign Company in Saudi Arabia allows overseas companies to expand their presence while operating under the parent company’s name and reputation.
With business-friendly reforms introduced under Saudi Vision 2030, branch registration has become more streamlined and transparent. Foreign companies can enjoy 100% foreign ownership, direct access to the Saudi market, and the ability to undertake commercial activities aligned with the parent company’s objectives—without the need for a local partner.
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What is a Branch of a Foreign Company in Saudi Arabia?
A Branch of a Foreign Company is an extension of an existing overseas company, legally registered in Saudi Arabia under the Saudi Companies Law and investment regulations. The branch operates under the same name and legal identity as its parent company, with the parent assuming full responsibility for its obligations and liabilities in the Kingdom.
This structure is ideal for foreign companies seeking to conduct commercial, industrial, or professional activities in Saudi Arabia without establishing a separate legal entity, while maintaining full control over operations.
Key Features of a Branch of a Foreign Company
- Not a separate legal entity from the parent company
- 100% foreign ownership permitted
- Parent company bears full liability for branch operations
- Can operate anywhere in Saudi Arabia
- Activities must align with the parent company’s scope
- Approved and licensed by MISA (Ministry of Investment of Saudi Arabia)
Benefits of Establishing a Branch of a Foreign Company in Saudi Arabia
Setting up a branch in Saudi Arabia enables foreign companies to expand operations while leveraging their existing global structure and reputation.
- 100% foreign ownership permitted
- Operate under the parent company’s name and brand
- No local sponsor or partner required
- Direct access to Saudi government tenders and giga projects
- Eligibility to obtain Saudi residence visas (Iqama)
- Parent company retains full control over operations
- Enhanced credibility with banks, clients, and authorities
- Ability to repatriate profits and capital to the parent company without restrictions
Minimum Requirements for Branch of a Foreign Company
Parent Company
- Must be a legally registered foreign company
- Valid commercial registration in home country
- Board resolution approving branch establishment in Saudi Arabia
Management
- Appoint at least one branch manager
- Manager can be foreign or Saudi national
- Power of Attorney required for local representation
Capital / Financials
- No share capital required (not a separate legal entity)
- Financial strength of the parent company considered
- Audited financial statements may be required
Office Address
- Physical office address in Saudi Arabia required
- Registered address mandatory for licensing
- Virtual office generally not accepted
Step-by-Step Process for Branch of Foreign Company Registration in Saudi Arabia
Estimated Timeline: 4–6 weeks
Step 1
Business Activity Alignment & Approval
We assist in aligning the proposed branch activities with the parent company’s existing scope and obtaining the required approvals in compliance with Saudi regulations.
Step 2
MISA Investment License Issuance
Our team manages the complete process of securing the MISA investment license for the foreign parent company to establish its branch in Saudi Arabia.
Step 3
Parent Company Document Attestation
We coordinate the preparation, notarization, and attestation of parent company documents, including board resolutions, commercial registration, and financial statements.
Step 4
Branch Registration & Commercial Registration (CR)
The branch is registered with the Ministry of Commerce, and the Commercial Registration (CR) is issued under the parent company’s name.
Step 5
Office Address & Government Registrations
We complete municipality registration, office lease documentation, and enroll the branch with ZATCA, GOSI, and other relevant authorities.
Step 6
Bank Account & Visa Processing
We assist with corporate bank account opening and support Iqama and visa processing for branch managers and employees.
Documents Required for Branch of a Foreign Company Registration in Saudi Arabia
For the Foreign Parent Company
- Certificate of Incorporation
- Valid Commercial Registration (home country)
- Board Resolution approving branch establishment in Saudi Arabia
- Memorandum & Articles of Association
- Audited financial statements (latest year)
- Apostilled and legalized parent company documents
For Branch Manager / Authorized Representative
- Passport copy
- Resume / Curriculum Vitae (CV)
- Power of Attorney (attested)
- Proof of address
Need Support Getting Started?
Talk to our experts for step-by-step assistance with branch registration in Saudi Arabia.
Permitted Business Activities for a Branch of a Foreign Company
- Trading & General Commerce (as per parent company license)
- Professional & Management Consultancy
- Information Technology & Software Services
- E-Commerce & Digital Platforms
- Manufacturing & Industrial Operations
- Logistics & Supply Chain Services
- Construction & Engineering Services
- Healthcare & Education (subject to regulatory approvals)
Branch of a Foreign Company vs Other Business Structures in Saudi Arabia
| Business Structure | Ownership | Best For |
|---|---|---|
| Branch of a Foreign Company | 100% Foreign | Existing Foreign Companies |
| Limited Liability Company (LLC) | Up to 100% Foreign | SMEs & Corporates |
| Regional Headquarters (RHQ) | 100% Foreign | Multinational Groups |
| Joint Stock Company (JSC) | Multiple Shareholders | Large Enterprises |
| Sole Establishment | Limited | Individual Professionals |
Taxation for Branch of a Foreign Company in Saudi Arabia
- Corporate Income Tax: 20% on taxable profits
- Zakat: Not applicable (branch is fully foreign-owned)
- VAT: 15% (if registered and applicable)
- Withholding Tax: Applicable on cross-border payments to the parent company or third parties
Saudi Arabia offers tax incentives and exemptions for qualifying sectors and foreign investors, subject to regulatory approvals.
Cost of Branch Registration in Saudi Arabia
The cost of registering a Branch of a Foreign Company in Saudi Arabia depends on:
- Nature of business activity
- Parent company financial profile
- MISA licensing requirements
- Office location and lease costs
- Number of visas required
Compliance & Ongoing Obligations
After branch registration, companies must comply with the following:
- Annual audited financial statements
- Corporate income tax filings with ZATCA
- VAT return submissions (if applicable)
- Commercial Registration (CR) renewals
- Saudization (Nitaqat) compliance
- Employee registration with GOSI
Contact us for a customized cost estimate based on your branch structure and business objectives.
Why Choose Us for Branch of Foreign Company Registration in Saudi Arabia?
- Access to government tenders: Eligibility to bid on projects issued by ministries and public entities through platforms such as Etimad
- End-to-end branch registration support from licensing to operational setup
- Direct coordination with MISA and government authorities
- Transparent and competitive pricing with no hidden costs
- Strong local Saudi legal and compliance expertise
- Comprehensive banking, visa, and post-registration support
Frequently asked questions
Can a foreign company establish a branch in Saudi Arabia?
Yes. Foreign companies can establish a branch in Saudi Arabia after obtaining approval from the Ministry of Investment of Saudi Arabia (MISA) and completing the required registrations.
Is 100% foreign ownership allowed for a branch office?
Yes. A Branch of a Foreign Company can be fully owned by the foreign parent company, with no local partner or sponsor required.
Is the parent company liable for branch operations in Saudi Arabia?
Yes. A branch is not a separate legal entity, and the foreign parent company bears full legal and financial responsibility for the branch’s activities.
How long does it take to register a branch office in Saudi Arabia?
The registration process typically takes 4 to 6 weeks, depending on document attestation, approvals, and regulatory requirements.