Hudson McKenzie helps businesses establish a strong legal and operational presence in Saudi Arabia through expert company formation, immigration, corporate compliance and workforce advisory services. Whether you are expanding into the Kingdom for the first time or restructuring your Middle East operations, our team provides end-to-end support for every stage of your market entry.
Saudi Arabia has become one of the world's most attractive investment destinations, driven by Vision 2030, significant economic reforms and unprecedented opportunities across sectors including technology, financial services, healthcare, construction, manufacturing, energy, logistics, professional services and hospitality. Under the Saudi Investment Law, effective February 2025, foreign investors can now hold up to 100% ownership in most commercial sectors without a Saudi partner — a significant shift that has made market entry considerably more accessible than in previous years.
Hudson McKenzie provides comprehensive legal and business advisory services to international companies establishing operations in the Kingdom of Saudi Arabia (KSA). We assist multinational corporations, SMEs, investors, entrepreneurs and family businesses with every aspect of Saudi company formation, licensing, immigration and ongoing corporate compliance.
Our experienced consultants coordinate the entire process, ensuring your business enters the Saudi market efficiently while remaining fully compliant with Saudi investment, labour and immigration regulations.
100% Foreign Ownership under the Saudi Investment Law
Under the Saudi Investment Law, effective February 2025, foreign investors can establish and wholly own a Saudi company in most commercial sectors, without the requirement for a local Saudi partner or sponsor. This represents a significant shift from earlier ownership restrictions and has made Saudi Arabia considerably more accessible for international businesses. Ownership conditions vary by sector and activity:
- Services, industrial and agricultural investments generally qualify for 100% foreign ownership without additional conditions
- Trading licences typically require the investor to already operate at least four international branches, along with a minimum capital requirement
- Real estate investment activities generally require a minimum level of Saudi ownership
Hudson McKenzie advises on the correct ownership structure and licensing route for your specific sector and business activity, ensuring your Saudi entity is established on the most advantageous and compliant basis available.
Our Saudi Arabia Company Formation Services
We provide complete support from initial planning through to operational launch. Our services include:
- Strategic market entry advice
- Corporate structure planning
- Investment planning and ownership structuring
- Saudi licensing advice
- Government approvals
- Corporate registrations
- Immigration and workforce planning
- Ongoing compliance support
Establishing a Branch Office in Saudi Arabia
A Saudi branch office allows an overseas parent company to conduct business in the Kingdom without creating a separate legal entity. A branch is legally an extension of the parent company — it has no separate legal personality, and liabilities and obligations sit directly with the foreign parent, rather than being contained within a standalone Saudi entity. A branch may be appropriate where an existing foreign company wishes to:
- Deliver services directly in Saudi Arabia
- Support existing regional clients
- Maintain direct ownership and control
- Expand Middle East operations with a lighter-weight structure than a subsidiary
Hudson McKenzie assists with:
- Branch registration strategy
- Investment approvals
- Commercial Registration (CR)
- Ministry registrations
- Municipality licensing
- Tax registrations
- Chamber of Commerce registrations
- Employment registrations
- Immigration registrations
- Corporate bank account support
- Ongoing regulatory compliance
Standard branch registration typically takes around four to eight weeks, depending on the sector and how quickly supporting documentation is finalised. We coordinate the entire process from application through to operational readiness.
Establishing a Saudi Subsidiary
Many international businesses choose to establish a Saudi limited liability company (LLC) or another locally incorporated entity to support long-term investment in the Kingdom. Unlike a branch, a subsidiary is a separate Saudi legal entity in its own right, with its own liability position distinct from the parent company. A subsidiary provides:
- A separate Saudi legal entity
- Greater commercial flexibility
- Local contracting capability
- Long-term operational stability
- Opportunities for business growth within Saudi Arabia
Hudson McKenzie advises on:
- Corporate structuring
- Shareholding arrangements
- Articles of Association
- Investment licensing
- Commercial Registration
- Corporate governance
- Regulatory approvals
- Tax registrations
- Employment compliance
- Ongoing corporate maintenance
A standard subsidiary typically takes around four to six weeks to establish, provided documentation is in order — though this can extend where the business activity requires additional sector-specific licensing. We work closely with our clients to determine the most appropriate legal structure based on commercial objectives, ownership requirements and sector-specific regulations.
Regional Headquarters (RHQ) Establishment in Saudi Arabia
Saudi Arabia's Regional Headquarters (RHQ) Programme, jointly administered by the Ministry of Investment (MISA) and the Royal Commission for Riyadh City, encourages multinational companies to establish their regional headquarters within the Kingdom, with a mandate to direct and manage operations across the Middle East and North Africa from Riyadh.
This is increasingly a commercial necessity rather than a positioning choice. Since January 2024, Saudi government agencies and state-owned entities have been restricted from awarding contracts above a certain value to foreign companies that do not hold a licensed RHQ in the Kingdom. For multinationals with government-linked business or ambitions in Vision 2030 giga-projects, an RHQ licence is now a practical prerequisite rather than an optional structure — unlike a branch or subsidiary alone.
To qualify, a multinational group must generally demonstrate a genuine regional footprint, including a physical presence — through subsidiaries or branches — in at least two countries other than Saudi Arabia and its own headquarters country. Once licensed, an RHQ is typically required to reach a minimum of 15 full-time employees, including at least three C-suite executives, within the first year of operation.
Hudson McKenzie provides complete RHQ advisory services including:
- RHQ eligibility assessments
- Corporate restructuring advice
- Regional headquarters licensing
- Regulatory approvals
- Corporate registrations
- Immigration planning
- Executive relocation
- Employment compliance
- Ongoing corporate governance support
We help multinational organisations establish fully compliant regional headquarters while ensuring efficient implementation of MISA's regulatory requirements.
Why Choose Hudson McKenzie?
Businesses choose Hudson McKenzie because we provide:
- End-to-end Saudi market entry support
- International legal and immigration expertise
- Dedicated corporate immigration specialists
- Practical commercial advice
- Fast, responsive project management
- Global mobility expertise
- Cross-border legal coordination
- Long-term compliance support
Our multidisciplinary team supports businesses throughout every stage of expansion into Saudi Arabia, enabling clients to establish operations quickly while navigating the Kingdom's evolving regulatory landscape with confidence. For senior executives and founders relocating personally as part of your expansion, we also advise on Saudi Premium Residency as a complementary long-term residency route.
Frequently Asked Questions
Can a foreign company establish a branch in Saudi Arabia?
Yes. Subject to applicable investment and regulatory requirements, foreign companies can establish a branch office in Saudi Arabia to conduct approved business activities.
What is the difference between a branch and a subsidiary?
A branch is an extension of the foreign parent company, with no separate legal personality — liabilities sit with the parent. A subsidiary is a separate Saudi legal entity with its own corporate identity. The most suitable structure depends on your business objectives, ownership requirements and regulatory considerations.
Can foreign investors fully own a company in Saudi Arabia?
In most commercial sectors, yes. Under the Saudi Investment Law, effective February 2025, foreign investors can hold up to 100% ownership without a Saudi partner. Ownership conditions vary by sector and activity, so it's worth confirming the position for your specific business before proceeding.
How long does it take to set up a company in Saudi Arabia?
Timelines vary by structure and sector. A standard branch or subsidiary generally takes around four to eight weeks, provided documentation is in order; activities requiring additional sector-specific licensing can take longer.
What is a Regional Headquarters (RHQ)?
An RHQ is a licensed regional management entity, jointly administered by MISA and the Royal Commission for Riyadh City, that enables multinational groups to manage regional operations from within the Kingdom, subject to meeting programme requirements.
Do I need a Regional Headquarters (RHQ) to work with the Saudi government?
For larger government and state-linked contracts, generally yes. Since January 2024, Saudi government agencies have been restricted from awarding contracts above a certain value to foreign companies without a licensed RHQ in the Kingdom. This makes RHQ licensing a practical requirement, rather than an optional structure, for businesses pursuing government-linked work.
Can Hudson McKenzie manage Saudi work permits and Iqamas?
Yes. We provide complete immigration support including work permits, Iqama applications, business visas, family immigration, renewals and ongoing compliance for employers and employees.
Can you help with Saudization compliance?
Yes. We advise businesses on Saudization (Nitaqat) obligations, workforce planning and strategies to maintain compliance while supporting operational growth.
Speak to Our Saudi Arabia Company Formation Team
Whether you are establishing a branch office, incorporating a Saudi subsidiary, setting up a Regional Headquarters (RHQ), or relocating employees to the Kingdom, Hudson McKenzie provides a single point of contact for your Saudi Arabia corporate, immigration and compliance requirements.
Speak with our Saudi Arabia specialists today to discuss your expansion plans and receive tailored advice on the most effective route to establishing your business in the Kingdom.
Saudi Arabia's regulatory landscape continues to evolve rapidly, and early structuring advice can materially affect timelines, ownership options and long-term compliance. Book a Private Saudi Arabia Company Formation Consultation or get in touch with us at info@hudsonmckenzie.com to know more.
