For companies
Setting up a company or branch in Saudi Arabia: how it works today
Since 2025 a foreign company wishing to invest in Saudi Arabia no longer applies for an investment licence, but registers with the Ministry of Investment (MISA). It then chooses the form of its presence in the Kingdom, usually a limited liability company or a branch, and completes commercial, tax and social security registrations with the help of local professionals.
By Avv. Pier Giorgio Ometto · Updated 29 October 2026
See also: Options for entering the market · UAE: free zone or mainland
In short
- The new Investment Law (Royal Decree M/19 of 2024), in force since February 2025, replaced the Foreign Investment Law of 2000 and the licence with a registration with MISA.
- The law applies equally to Saudi and foreign investors; some activities remain excluded or subject to approval, according to a list updated by the authorities.
- The most common forms are the limited liability company, the simplified joint stock company introduced by the 2022 Companies Law, and the branch of a foreign company.
- MISA registration is only the first step: it is followed by commercial registration, tax and social security registrations and any sector-specific approvals.
Main steps
- Sector check. Confirm that the activity is not excluded or subject to conditions for foreign investors.
- Choice of form. Limited liability company, simplified joint stock company or branch, depending on the project, the shareholders and the liability the parent company is prepared to take on.
- Registration with MISA as an investor, with the investment registration certificate.
- Commercial registration and registrations with the tax and social security authorities.
- Sector approvals, where the activity requires them.
- Start of operations: bank account, premises, staff, in compliance with the rules on employing Saudi nationals.
Company or branch?
- Limited liability company: a separate entity from the parent company, which is generally liable only up to its capital. It is the most frequent choice for a permanent business.
- Simplified joint stock company: a form introduced by the 2022 Companies Law, designed for a more flexible structure and for bringing in investors.
- Branch of a foreign company: not a separate entity, so the parent company is directly liable for the branch’s obligations. It may suit specific projects.
The choice also has tax and contractual consequences, in Italy and in Saudi Arabia, and should be assessed with the company’s tax adviser and local professionals.
If you work with public entities
Since 1 January 2024, multinational companies wishing to contract with Saudi government entities must, as a rule, have a regional headquarters (RHQ) in the Kingdom. The RHQ has its own requirements and cannot directly carry out commercial activities, which remain with the group’s operating companies.
Our role
The firm helps the company choose its structure, prepares and negotiates agreements with shareholders and partners, and coordinates from Italy the local professionals who handle registrations, licences and on-site formalities.
Frequently asked questions
Is a MISA licence still required?
Since February 2025, under the new Investment Law, the licence has been replaced by investor registration with MISA. Licences issued earlier remain valid until expiry.
Can an Italian company own 100% of the company?
In most sectors, yes. Some activities are excluded or subject to approval: the list is updated by the authorities and should be checked before starting the project.
Company or branch: which is better?
It depends on the project. A company separates assets and liability from the parent; a branch does not. Tax, customer contracts and sector requirements also matter.
Do we need to hire Saudi staff?
There are rules on employing Saudi nationals, which vary by sector and company size. They should be factored into the start-up plan.
How long does it take?
It depends on the sector and the approvals required. With documents ready and local professionals already involved, timing is shorter: we provide an estimate at the start, project by project.
Sources
- Saudi Ministry of Investment (MISA), misa.gov.sa
- Saudi Ministry of Commerce, mc.gov.sa
Avv. Pier Giorgio Ometto. The first contact can take place by phone, by video call or, at your request, at your premises.