Saudi Arabia Subsidiary

Saudi Arabia


Looking for a job?

Take the next step and explore a world of possibilities on our partner job portal

Extending your business to Saudi Arabia is a thrilling time in the life of your company. Rather than relishing a new milestone, you must understand Saudi Arabia company subsidiary legislation, hire staff, meet deadlines, and assure compliance along the process. Before you can hire people and start your business in Saudi Arabia, you must first establish a subsidiary in order to legally function in the region.

In this article, we will talk about Saudi Arabia subsidiary companies, business setup companies in Saudi Arabia, Saudi companies law, and more. Subsequently, setting up a subsidiary will let you to legally recruit employees, process payments, and provide benefits. Let us see:

  1. How to establish a company subsidiary?
  2. Benefits of setting up a company in Saudi Arabia
  3. How can Connect Resources help you?

How to establish a company subsidiary?

You should take into account a few things before establishing your subsidiary business setup in Saudi Arabia; because they could affect where you look for office space and the steps you take. Consider your sector, the kind of business you want to run, and any trade agreements or other commitments you need to uphold.

Since the legislation forbids a foreign company from acting as a commission agent, we advise using a Saudi advisor or company like Connect Resources to make immediate sales to the private industry outside of the nation.

The Kingdom of Saudi Arabia is divided into four distinct regions:

  • Parts of Eastern Arabia (Al-Ahsa).
  • Southern Arabia (‘Asir).

Laws, clients, and regulations can vary between regions. To make the greatest decision for your business, you must conduct thorough study on the area; this, before deciding where to set up your company subsidiary.

Consequently, you must reserve a company name with the Ministry of Commerce and Industry; which you can do online, in order to setting up company in Saudi Arabia. The Ministry must also receive your articles of incorporation or association. The documents are then stamped with the notary public’s notarial seal.

Subsidiary companies law Saudi Arabia

If you wish to grow your business in Saudi Arabia, you must either learn the local legal system there or engage a lawyer to guide you through the registration procedure. According to the business law in Saudi Arabia, you must first create a bank account with a Saudi Arabian bank before applying for a business permit with the municipality of Riyadh. The “Wasel” post office must formally register your work address if you choose a physical site in one of the 4 regions.

Fees are necessary for some stages of the process to set up in Saudi Arabia, including:

  • Publication of the articles of incorporation’s executive summary (SAR 1,150).
  • The creation of a corporate seal (SAR 50).
  • Having a Chamber of Commerce membership (SAR 2,000).

The Saudi Business Law also call for some free of charge actions. You must submit the paperwork to the Ministry of Commerce and Industry to obtain a Certificate of Registration after paying for the printing of the synopsis of your articles of incorporation. By registering with the Department of Zakat, the General Organization of Social Insurance, and the Ministry of Labor, you can finish the full process.

If you want to learn more about the new companies law Saudi Arabia, you can get in touch with us. Our company’s team will help you understand every step of the process; consequently, you can legally instate your company subsidiary in Saudi Arabia.

Requirements to open a Saudi Arabia subsidiary company

A foreign business interested in establishing a subsidiary company in Saudi Arabia must take into account a number of crucial factors, including:

  • The Saudi subsidiary’s local registered address.
  • A draft of the subsidiary’s articles of association.
  • Open a bank account in your area.
  • Register with the Saudi Arabian Tax and Zakat Authority.
  • In accordance with the sector it will serve, submit applications for the SAGIA license as well as other business permits.
  • Additional criteria include joining the Chamber of Commerce and obtaining a company seal.

Benefits of setting up a company in Saudi Arabia

The ability to start working for the business lawfully is the main advantage of establishing a Saudi Arabia subsidiary and doing business in Saudi Arabia. Once it is over, you may begin hiring staff, running your firm, and managing payroll. However, you also need to become familiar with all of the new Saudi companies law and care about compliance.

Change is possible with Connect Resources. You can start working right away if you want to outsource to our company’s Saudi Arabia affiliate. We will be in charge of all compliance issues because we are the Employer of Record Saudi Arabia, relieving you of that responsibility. We can manage your payroll, hire staff on your behalf, and distribute benefits.

Why operate through a subsidiary company?

Foreign and domestic businesses can select between subsidiaries and branches when looking to grow into Saudi Arabia or into locations other than the ones they already operate in. International businesses must carefully weigh their options if Saudi corporations can ensure total power over the remote operation with a branch office, and the setup process is very straightforward.

Foreign businesses frequently choose to establish subsidiaries in Saudi Arabia because they may tailor their goods and services to the regional market and are not responsible for the debts or obligations of their companies.

A subsidiary in Saudi Arabia must apply for a foreign investment permit with the General Investment Authority, which is disadvantageous compared to operating a branch there (SAGIA license). Although the process is straightforward, the time it takes to verify and approve all of the paperwork can be considerable.

Our local agents can assist you in selecting a legal form if you wish to establish a business in Saudi Arabia or choose to immigrate to Saudi Arabia and require assistance.

How can Connect Resources help you?

Our Saudi business formation experts are available to you throughout the full creation process if you require assistance forming a subsidiary in this nation, and our Saudi immigration lawyers may aid you with moving here.

You can discover a supporter for your payroll personnel procedure with Connect Resources. We offer the most economical HR services in the area, such as:

Do you need our support to start your Saudi Arabia subsidiary company? Contact us now! Call us at +971 43 316 688 or send us an email at We have the necessary expertise to take on any project, if you do not believe us go see our testimonials page.

Moreover, if you want to start working in the region as soon as possible, is the place for you! Register and upload your CV and enjoy the perks of finding employment with our support. You can also send us an email at to know more about what we do.

Connect with our experts to seek the best Visa Services in the UAE.

Check out how we can offer this service to you.

Get a free consultation call with our experts

— or —

Write to us

    I'm interested in

    Looking for a job?

    Take the next step and explore a world of possibilities on our partner job portal