How to Expand into Saudi Arabia

Applying for MISA License

The MISA Investor License is a company license category, designed to attract established international companies to expand into Saudi Arabia. These companies must be able to provide audited financial statements for the last year as part of the setup process. The new Saudi entity being formed must be owned by the parent company and not individuals. All documents must be signed by an authorized signatory who has Power of Attorney (PoA) from the parent company. *As travel is not currently possible, once the MISA License has been issued, a Power of Attorney (PoA) would need to be issued to a member of our Saudi team in order to carry out the setup process on your behalf.

Business Activities

Common activities include technology, management consulting, media and event management. Certain activities are not permitted and/or require third party approval. Currently the government has given special attention to several sectors that would be attractive to foreign investment. Some of these sectors are education, logistics, manufacturing, entertainment, tourism, and culture. The Ministry of Investment, and other ministries, are spearheading several initiatives to help international companies in these sectors expand to KSA. Reach out to our team for advice and for a full list of activities.

Drafting of the Local Articles of Association

After the issuance of the MISA investment license, the drafted AoA of the local company will be sent to the Ministry of Commerce for review, and upon their approval, it will then be attested to serve as the main foundation of the legal entity in Saudi Arabia and the prerequisite to issuing the Commercial Registration. The person signing on the AoA must be authorized by the parent company through a Power of Attorney (POA).

Commercial Registration (CR) Issuance

This will be the equivalent of a trade license in other countries, and it serves as the main document showing the registration number of the company, the dates, and the General Manager. The CR will also list the activities of the local company.

Preparing of Required Documents

• Attested Trade License of the parent company

GM Visa Transfer to Iqama (Residency)

The GM Working Visa is a one-time entry to KSA that will at this stage be transferred to an Iqama (Residence Permit). The local employer applies and secures the work permit and Iqama so that the employee can legally work and live in KSA. The employer is considered the local sponsor. An Iqama is issued to expatriates who arrive in KSA with a work visa. The term of employment is limited to the amount of time listed on the work permit. This is currently set at one year for work at private companies, but there is an option to renew the permit after one year. More information on residency permits. The Iqama card is the essential ID for expats working in Saudi Arabia. It is also known as a Muqeem card and is the most important document you will have in the kingdom, without it you will not be able to live or work in the country. Once you have your Muqeem card, the company will add you to their Muqeem portal which enables re-entry visas to be issued and the renewal of residence permits.

Opening a Bank Account

This is the final step of the process. After gathering all the required documents, the process of opening a bank account is initiated. Each bank is different in terms of speed and customer service. Standard requirements from the banks:

• AoA of the parent company