General Manager's Checklist for Setting Up a Foreign Business in Saudi Arabia

A step-by-step checklist for General Managers setting up in Saudi Arabia, from visas and Iqama to compliance and post-registration steps.

The General Manager's initial in-person visit to Saudi Arabia is a critical milestone in the business setup journey. This visit is essential for establishing the company's legal entity and activating on-ground operations.

Preparing for the General Manager's visit involves a three-stage approach: pre-arrival checklist, steps after arrival, and post-registration requirements.

This guide breaks down the main elements of this crucial process.

Understanding the General Manager's Role in Saudi Arabia

Regulations require that every foreign company setting up operations in Saudi Arabia appoint a locally resident General Manager (GM) to oversee operations, ensure regulatory compliance, and coordinate with relevant government ministries.

This individual must first obtain a visa to enter the Kingdom and then secure a valid Iqama (residency permit) to be formally appointed as the company's locally resident authorized representative.

Visa Requirements

The General Manager's visa is a work visa that allows entry to Saudi Arabia for a period of at least 90 days. Once issued, the GM must have it stamped at the designated Saudi consulate or embassy before traveling to the Kingdom.

Important: You must enter Saudi Arabia within three months of the visa's issuance. Failure to do so will result in visa cancellation, causing a minimum delay of two months in the setup process and potential fines or government penalties.

Iqama

Once in the Kingdom, the GM must obtain an Iqama issued after completing required medical examinations. The Iqama is typically valid for 12 months and serves as the official residency document enabling the GM to conduct business operations and access government services.

Re-Entry and Exit Visa

To leave and re-enter Saudi Arabia, an Exit Re-Entry Visa is required. It is highly advisable to obtain a multiple-entry visa to ensure smooth travel throughout the year without operational disruptions.

GM’s Visit to Saudi Arabia: Key Elements to Consider

Pre-Arrival Checklist: Documents You Need Before Traveling

Prior to the General Manager's visit to Saudi Arabia, ensure you have the required documents ready to coordinate with an approved travel agency that will handle the GM's visa process.

Required Documents:

• Copy of your valid passport
• Professional photographs (passport-sized, meeting Saudi requirements)
• Medical check-up report (valid for three months)
• Police clearance certificate (issued by your home country)
• Notarized and apostilled corporate documents (as required by the Saudi embassy)

Critical Timeline Note: Plan your travel and complete all preparations to use the visa within two weeks of receiving it. This ensures you can fully complete the business setup process within the required timeframes and avoid costly delays.

First Steps After Arriving in Saudi Arabia

Upon your arrival in the Kingdom, you will need to complete several key steps to formalize your Iqama and activate business operations.

1. Visa Stamping

Upon entry to Saudi Arabia, ensure your visa is properly stamped by immigration authorities. Your medical report and police clearance must remain valid for at least three months from the date of entry.

2. Essential Initial Steps

Complete the following immediately after arrival:

• Medical Checkup: Required for Iqama issuance; must be conducted at an approved medical facility
• Health Insurance: Obtain mandatory health insurance coverage as per Saudi regulations
• Saudi SIM Card: Secure a local mobile number (essential for banking, government portal access, and daily operations)
• Issue the GM's Iqama: Submit all required documentation to obtain your residency permit

Government Portal Registrations

After obtaining your Iqama, register on key government platforms to facilitate operations and ensure ongoing compliance. These portals are interconnected, and maintaining accurate records across all systems is essential for smooth business operations.

Essential Government Platforms

• Muqeem: Manages resident employees' information and transactions, including issuing, renewing, or canceling visas and permits, and updating residency records. This platform is critical for all visa-related processes.
• Absher: Provides a comprehensive range of e-services for individuals to manage government transactions, personal data, and administrative matters such as passports, visas, and driving licenses.
• Qiwa: Streamlines employment-related processes for employers and employees, offering labor and employment services such as job matching, contract management, Saudization compliance, and workforce data management.
• Mudad: Manages payroll and labor compliance for businesses, ensuring legal compliance with labor regulations and maintaining accurate payroll records. Essential for Wage Protection System (WPS) compliance.
• Saudi Business Center: Allows companies to manage all aspects related to their Commercial Registration (CR), Articles of Association, memorandums, and business licenses.

Post-Registration: Essential Actions for the General Manager

After completing the incorporation process and obtaining your Iqama, the General Manager must fulfill several additional responsibilities to ensure compliant and efficient operations.

Fulfill Saudization Requirements

If your company has fewer than six employees, at least one (often the GM) must be a resident of Saudi Arabia. Companies must hire a Saudi employee before renewing the GM's Iqama after one year if the total headcount remains under six.

Understanding and maintaining compliance with Nitaqat (Saudization) requirements is critical for avoiding penalties and maintaining operational longevity.

Clearly Define GM Responsibilities in the Articles of Association

The Articles of Association (AoA) should clearly outline the General Manager's powers and responsibilities. Restricting the GM's authority too narrowly can lead to operational bottlenecks and delays.

Essential GM Functions Should Include:

• Commercial and Legal Operations: Managing commercial registers, signing contracts, and representing the company in official matters
• Financial Management: Opening and managing bank accounts, authorizing financial transactions, and overseeing treasury functions
• Property and Real Estate: Handling property transactions, office leases, and facility management
• Human Resources and Compliance: Recruiting employees, managing visas and work permits, ensuring Saudization compliance, and handling employment contracts
• Administrative Authority: Appointing legal counsel, granting power of attorney when necessary, and representing the company before government authorities and courts

Complete Harmonization Procedures

Upon receiving the Iqama, the GM must update the Articles of Association by replacing the passport number with the newly issued Saudi ID (Iqama number). This essential procedure, known as "harmonization," links the GM's Iqama to government portals and enables full system access and compliance.

Without harmonization, the GM cannot effectively manage company operations through government platforms, leading to administrative complications and compliance risks.

Common Risks That Can Derail Your Business Expansion

Even minor oversights during the General Manager's visit can cause significant delays, increased costs, and compliance complications. Below are the most common pitfalls and their consequences.

1. Delayed or Incomplete Qualification Verification Process

Failing to complete the QVP before applying for the GM visa results in application rejection and substantial delays. This step must be prioritized early in the planning process.

2. Improper Document Notarization

Incorrectly apostilled or notarized documents lead to visa application rejection. Ensure all corporate documents are prepared according to Saudi embassy requirements and verified by qualified legal professionals.

3. Missing the Visa Validity Window

If you do not enter Saudi Arabia within three months of visa issuance, the visa is automatically canceled. This results in restarting the entire visa application process, causing delays of two months or more.

4. Lack of Local Support for Re-Entry Visa Setup

A multiple re-entry visa through Muqeem requires coordination with local partners or service providers. Many firms miss this requirement and discover it only when the GM needs to travel, causing project delays and operational standstills.

5. Incomplete Government Portal Registrations

Failing to register on all essential government platforms (Muqeem, Qiwa, Mudad, and Absher) prevents full operational functionality. The GM cannot hire staff, manage visas, or ensure payroll compliance without complete portal access.

Should you encounter any challenges planning the GM's visit to Saudi Arabia, it is highly recommended to book a free consultation call with one of our local business setup advisors for personalized guidance.

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