How to Set Up a Business in Saudi Arabia as a UK Founder

Saudi Arabia is moving fast. Driven by Vision 2030, the Kingdom is opening up to international founders and investors at scale, with major capital flowing into infrastructure, real estate, tourism, logistics, advanced manufacturing, health and life sciences, and technology.

For UK founders, the opportunity is real, but so is the complexity. The difference between a successful market entry and a stalled one usually comes down to structure: choosing the right setup route, understanding licensing and compliance, and building the right local support early.

This guide outlines the typical steps involved in setting up a company in Saudi Arabia, based on the core process used by the Saudi authorities and common market practice. It is written as practical guidance, not legal advice.

Why Saudi Arabia and why now

Saudi Arabia’s Vision 2030 transformation has accelerated international participation and expanded the pathways for foreign companies to establish in the Kingdom.

For UK founders, the key point is that company formation is increasingly digital and process-driven, and 100% foreign ownership is available in many sectors, but the details depend on your activity, licence and structure.

Step 1: Define your business activity

In Saudi Arabia, selecting the precise commercial activity is critical. Your activity influences:

• The licence type you need

• Capital requirements

• Saudization (workforce) obligations

Get this right early. Many delays happen when a company tries to incorporate under an activity that does not match what it actually intends to sell or deliver.

Step 2: Choose the right legal structure

The most common legal entities used by foreign founders include:

• Limited Liability Company (LLC)

• One-Person LLC

• Joint Stock Company (JSC)

• Branch of a foreign company

• Representative office (typically limited to marketing and research and not direct sales)

The right choice depends on your growth plan, whether you need to trade locally, and how you want to operate in-market.

Step 3: Reserve your trade name

Trade names are typically reserved via the Ministry of Commerce (MoC) portal. You will usually submit multiple options and ensure they comply with naming rules.

In practice, you should also plan for Arabic naming requirements (or an approved Arabic translation), and avoid anything that could create trademark conflicts.

Step 4: Obtain a foreign investment licence

For many foreign-owned setups, the process includes securing a foreign investment licence through the Ministry of Investment of Saudi Arabia (MISA).

Documentation requirements vary, but commonly include items such as:

• Certified and translated constitutional documents

• Shareholder identification

• Supporting financial information (particularly where a parent company is involved)

Step 5: Submit your incorporation application and receive your Commercial Registration

With the relevant approvals in place, incorporation is typically filed through the MoC’s online portal.

If the submission is accepted, you receive a Commercial Registration (CR) certificate. This is a foundational document used for downstream steps such as banking, contracting and operational setup.

Step 6: Appoint a general manager or local agent

Many structures require a nominated general manager. For branches and representative offices, a local agent may be appointed to handle in-country formalities, often via a notarised power of attorney.

Step 7: Secure sector-specific approvals (if required)

Certain regulated activities, such as healthcare, education and finance, can require additional approvals from relevant regulators.

If your business is in a regulated sector, treat this as a core workstream, not a final checkbox.

Step 8: Register for tax and complete essential compliance

Once incorporated, companies typically register with the relevant tax authority and complete other compliance steps required to operate.

Plan for ongoing obligations from day one. A “set it and forget it” approach is one of the most common causes of avoidable risk.

Step 9: Open a Saudi corporate bank account

Banking is a practical milestone. Many banks will require your CR and relevant approvals or licences.

Some banks support remote onboarding, but requirements can vary and timelines can be affected by documentation readiness.

Step 10: Apply for visas and Iqamas

Once your company is established, you can typically apply for visas and residency permits (Iqamas) under your company’s quota, depending on your structure and compliance status.

Common pitfalls UK founders should avoid

• Choosing a setup route before confirming the licence fits the business model

• Underestimating documentation, translation and legalisation requirements

• Treating incorporation as the end goal rather than the start of market entry

• Building partnerships too late, instead of lining up delivery capability early

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Where ISS can help…

ISS has been actively operating across Saudi Arabia for several years, working alongside trusted Saudi partners, government stakeholders and private sector leaders.

ISS supports UK and international businesses with market entry, regulatory frameworks, commercial partnerships, property structures and investment readiness, helping founders move from interest to action with a credible, de-risked route into the Kingdom.

Find out more in our upcoming interactive online session

If you want a clearer, more practical route to entering Saudi Arabia, whether through business setup, property investment, or a blended approach, join our upcoming interactive session.

Unlocking the Kingdom Business Setup and Property Investment Opportunities in Saudi Arabia - An exclusive interactive online session for UK business founders and investors.

Hosted by: ISS Group Speakers: Ammar Mirza CBE (Founder of ISS Group) and Saeed Al Ansari (Investment Strategist)

This is an interactive briefing designed to answer real questions and open real doors. You will gain insight into current and upcoming changes to business setup and property ownership, routes to establishing a company (including licensing structures, free zones and mainland options), property investment opportunities across residential, commercial and mixed-use, how UK investors can invest legally and safely, sector-specific opportunities aligned to Saudi growth priorities, common pitfalls, and how ISS and Saudi partners provide full wrap support from entry to operation and scale.

Find out more and register via our upcoming webinar!

Sign Up for Our Upcoming Webinar