How to Set Up a Business in Riyadh: Key Steps & Opportunities

For multinationals seeking growth opportunities, here's how to set up a business in Riyadh.

The significance of Riyadh has surged in recent years, outpacing other cities, as companies looking to start a business in Saudi Arabia consider the capital as their operational base.

Understanding Processes: How to Set Up a Business in Riyadh

Phase 1: Establishing Your Legal Entity (1 Month)

Firstly, this phase involves setting up a legal entity.

1. Secure a one-year MISA Investor license
2. Choose and register a company name
3. Draft Articles of Association (AoA)
4. Secure Commercial Registration (CR)
5. Register with the Chamber of Commerce

Related read: How to Get Your Commercial Registration in Saudi: Step-By-Step Guide for 2025

Phase 2: Team Authorization and Hiring (2 Months)

Next, this phase entails getting the authorization to hire staff.

1. Obtain a Company Seal
2. Register with the Ministry of Labor
3. Enroll in the General Organization for Social Insurance (GOSI)
4. Register a national address
5. Issue a Visa for the General Manager (GM)
6. Register with the General Authority of Zakat and Tax (GAZT)

Phase 3: Residency and Banking (3 Months)

Lastly, the final stage requires completing the residency process for the general manager (GM), among other steps.

1. Activate the Chamber of Commerce account
2. Obtain health insurance
3. Complete a medical checkup
4. Issue the GM’s Iqama (Residency permit)
5. Register with Muqeem
6. Sign up on Absher
7. Register on the Qiwa portal
8. Enroll on the Mudad platform
9. Open a Bank account

Depending on the industry, foreign companies may be required to acquire third-party permits and sector-specific licenses.

Benefits of Setting Up a Business in Riyadh in 2025

With Riyadh being the location of World Expo 2030 and one of the five Saudi host cities of FIFA World Cup 2034, the region will undergo major transformations over the next decade.

For global corporations, setting up a business in Riyadh is key to unlocking a unique blend of significant investment prospects and abundant opportunities for sustained growth.

Looking further ahead, Riyadh is projected to accommodate 10 million people by 2030, prompting the demand for sustained investments in a resilient, integrated infrastructure system that supports the health and well-being of residents and visitors.

The accelerated urbanization coupled with high expenditure on infrastructure underpins Riyadh’s global position among the 15 fastest-growing cities in the world by 2033.

Highlighting the city’s increased attractiveness as a global business destination, over 571 global multinational companies (MNCs) have chosen Riyadh as the location of their regional headquarters as of last year.

Evidently, Riyadh’s lead as a magnet for MNCs continues to strengthen as the city bills itself as the regional economic powerhouse with a globally competitive talent base, with its influence projected to expand even more in 2025.

AstroLabs’ on-the-ground team specializes in helping businesses launch smoothly in the Kingdom. Reach out for tailored assistance today on how to set up a business in Riyadh.

Case Studies of Successful Global Business Expansions in Riyadh

Over the years, Riyadh has gained strategic importance as a launchpad for companies aiming to penetrate the Saudi market.

The city's state-of-the-art digital infrastructure is a major draw for tech companies like Sword Group, a leading consultancy and cloud services provider.

Nationwide, the demand for cloud computing as a catalyst for complete digital transformation continues to surge, presenting rewarding opportunities for companies like Sword.

By broadening its reach in Saudi Arabia, the UK-based champion looks to enable businesses to modernize their operations, supporting Vision 2030 objectives to become a digital nation to the core.

Its offices in Riyadh enabled Sword to be directly involved with giga projects like NEOM. Currently, the consulting firm works to assist several energy and water organizations with various projects related to information management, data science, and analytics.

Given its strategic advantages as a global tech hub, Riyadh naturally emerges as the ideal destination for companies in digital media and advertising. Take Assembly Global as an example.

In a short span of time, Assembly has rapidly grown an impactful presence in Saudi Arabia, leveraging its vast expertise and capabilities to create unique, contextually relevant campaigns.

The firm’s rapidly expanding network of partners and clients includes NEOM’s LINE and Riyadh’s New Murabba, in addition to major key brands such as Ceer, the first Saudi electric vehicle (EV) brand, and Saudi Company for Artificial Intelligence (SKY).

Beyond taking note of what the city offers, Riyadh’s burgeoning tech population and diverse consumer base offer an ideal framework for companies looking to capture opportunities within the thriving retail space.

For that reason, Riyadh is considered a prime location for Lenskart, a global direct-to-consumer (D2C) eyewear retailer, to set up a business and expand its retail coverage. Lenskart currently has four stores in Riyadh and two in Jeddah, with plans to expand its footprint in the months to come.

Join AstroLabs’ growing network of companies leveraging unique opportunities in Saudi Arabia's hotbed sectors like retail and technology. Contact their team to expand your business to Saudi now.

How to Set up a business in Riyadh: Top Frequently Asked Questions 

1. How long does it take to register a company in Riyadh?

Typically, it can take up to six months to set up a business in Riyadh. However, thanks to AstroLabs’ decade-long expertise in company formation in Saudi Arabia, the process takes a shorter time. On average, AstroLabs clients become operational in three months.

2. Can foreigners set up a business in Riyadh?

Yes, foreigners can set up their company and enjoy 100% ownership of shareholding.

Foreigners seeking to establish their ventures in Saudi Arabia are required to appoint a general manager for the Saudi entity, who would need to be a resident of Saudi Arabia.

3. What is the cost of setting up a business in Riyadh?

The average cost of expenses covering the business setup during its first year of operation can be SR550,000 or $172,000.

The renewal process for a license covering the following year starts in the 11th month of the year.

4. What are the requirements to set up a business in Riyadh?

Essential documents to start a business in Riyadh are,

For Established Businesses:

• Commercial Registration (Attested by MOFA and the Saudi Embassy)
• Memorandum of Association (MoA) & Articles of Association (Attested by MOFA and the Saudi Embassy)
• An Audited Financial Statement

For Startups:

• Commercial Registration (Attested by MOFA and the Saudi Embassy)
• Memorandum of Association (MoA) & Articles of Association (Attested by MOFA and the Saudi Embassy)
• A letter of intent, a startup brief, and a pitch deck
• A support letter from a VC company or a licensed incubator

5. What are the corporate taxes in Riyadh?

Corporate income tax is levied on net adjusted profit or the share of companies owned by non-Saudis and is set at a standard rate of 20%.

6. What are the business opportunities in Riyadh?

Riyadh currently serves as the nerve center of grand-scale development initiatives in Saudi Arabia. That includes a number of giga projects such as Qiddiya, Diriyah, and New Murabba, and other mega undertakings such as King Salman Park and the Boulevard Business Park, among others.