How to Register a Foreign Branch in Saudi Arabia

How to Register a Foreign Branch in Saudi Arabia

How to Register a Foreign Branch in Saudi Arabia. Saudi Arabia is one of the fastest-growing business markets in the Middle East. Many foreign companies are looking to expand into the country because of its strategic location, strong economy, and business-friendly reforms. However, registering a foreign branch in Saudi Arabia requires careful planning and understanding of local regulations. This guide explains the step-by-step process to help foreign investors register their branches efficiently.

Understand Legal Requirements

First, familiarize yourself with Saudi Arabia’s legal framework for foreign companies. A foreign branch is an extension of a parent company and must comply with the Saudi Arabian General Investment Authority (SAGIA) regulations. Additionally, the branch must adhere to commercial laws, tax rules, and licensing requirements. Understanding these legal requirements ensures smooth registration and prevents delays.

Obtain Initial Approval

Before starting operations, your company must obtain initial approval from SAGIA. This step involves submitting a request for foreign branch registration along with:

  • A copy of the parent company’s commercial registration

  • Board resolution authorizing branch establishment

  • Financial statements of the parent company

  • Articles of Association or equivalent documents

SAGIA will review your application to ensure that your business activity aligns with Saudi regulations. Receiving initial approval is crucial before proceeding to the next steps.

Reserve a Trade Name

After receiving approval, reserve a trade name for your branch with the Ministry of Commerce (MOC). The trade name must be unique, comply with Saudi naming regulations, and reflect your company’s activity. Additionally, the name should not conflict with existing businesses. Reserving the trade name early helps streamline the licensing process.

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» Can a Foreigner Start a Business in Saudi Arabia?

» How to Apply for a Business License in Saudi Arabia

» How much does it cost to set up a Business in Saudi Arabia?

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Prepare Legal Documents

Next, prepare all required legal documents for branch registration. These typically include:

  • Certified and notarized parent company documents

  • Board resolution approving branch establishment

  • Power of attorney appointing a local representative

  • Lease agreement for the branch office in Saudi Arabia

Ensure that all documents are translated into Arabic and attested according to Saudi requirements. Proper documentation avoids rejection or delays in processing.

Submit Application for Commercial Registration

Once the documents are ready, submit the application for commercial registration at the Ministry of Commerce. The application should include all legal documents, approved trade name, and SAGIA approval. Additionally, pay the required registration fees. Upon approval, your foreign branch will receive its commercial registration certificate, allowing it to operate legally in Saudi Arabia.

Open a Corporate Bank Account

After obtaining the commercial registration, open a corporate bank account in Saudi Arabia. The account is necessary for managing business operations, paying salaries, and complying with financial regulations. Choose a bank that offers international services and supports foreign branch operations.

Register with Tax and Labor Authorities

Finally, register your branch with the General Authority of Zakat and Tax (GAZT) and the Ministry of Human Resources and Social Development. This step ensures compliance with Saudi tax, social security, and labor laws. Additionally, it allows you to hire employees legally and pay salaries according to local regulations.

Conclusion

Registering a foreign branch in Saudi Arabia requires careful planning, legal compliance, and proper documentation. By understanding the legal framework, obtaining initial approvals, reserving a trade name, and completing all registration steps, foreign companies can establish a successful presence in the Saudi market. Following this step-by-step process reduces delays, ensures compliance, and allows foreign investors to take advantage of Saudi Arabia’s growing economy.

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