How to Obtain a Commercial Registration (CR) in Saudi Arabia: A Full Guide for Foreign Businesses

Using this guide, foreign companies can successfully navigate the process of acquiring a CR in Saudi Arabia

Commercial registration (CR) in Saudi Arabia grants foreign businesses the legal authority to operate within the Kingdom's regulatory framework.

It represents a fundamental aspect of the first stage of a successful, compliant business setup process.

Below is a step-by-step guide outlining how companies can obtain a CR certificate.

Obtaining a CR Certificate: Overview of Necessary Steps

The commercial registration process now follows six streamlined steps.

• Step 1: Choose your business entity

Foreign companies entering Saudi Arabia must carefully evaluate their structural options, as this decision impacts taxation, compliance obligations, and operational flexibility.

Foreign Company Subsidiaries represent the most popular choice among international businesses.

• Step 2: Address pre-registration requirements

MISA License

International businesses must secure Ministry of Investment (MISA) licenses before commercial registration, choosing from eight categories: service, trade, industrial, professional, real estate, agriculture, mining, and entrepreneurial licenses. The license issuance typically takes 5-7 working days.

Name Reservation

In Saudi Arabia, choosing a distinctive name for your business is a prerequisite to completing the company registration process

Businesses are now allowed to use non-Arabic names, granting them more flexibility in name selection, according to the new Trade Names Law.

• Step 3: Register with the Saudi Ministry of Commerce

After securing a MISA license and choosing a business name, companies must fill in an online application form on the Ministry of Commerce portal.

The application requires comprehensive company information, including trading names, business structures, planned activities, owner details, capital documentation, and parent company registration information.

• Step 4: Submit Articles of Association

Companies must submit Articles of Association (AoA) defining their organizational structure, ownership arrangements, and management frameworks. These constitutional documents establish governance parameters and operational guidelines.

• Step 5: Pay the registration fees

As a final step, foreign companies are required to pay the necessary fees.

• Step 6: Collect the CR Certificate

Upon application review and approval, businesses receive official notifications and collect their CR certificate.

What Comes After Commercial Registration in Saudi Arabia?

Right after having the CR ready, companies then have to register with the Chamber of Commerce (CoC), marking the end of the first stage of the Saudi market expansion roadmap.

The subsequent phase typically involves finalizing registrations with relevant ministries such as the Ministry of Labor, the General Organization for Social Insurance (GOSI), and the General Authority of Zakat and Tax (GAZT) for tax compliance.

Securing office space is obligatory to have a national address and later to be able to proceed with yearly CR confirmation.

NOTE: Under the new commercial registration law, if a company stops operating in Saudi Arabia, its CR will be revoked within a year instead of 30 days.

In the soft landing phase, businesses are required to issue an Iqama for the general manager of the Saudi entity and register on key government portals such as Muqeem, Absher, Qiwa, and Mudad. To finalize this process, companies must have an active bank account.

The final steps typically include hiring staff in adherence with the Saudization (Nitaqat) quota, issuing visas for non-Saudi employees, and implementing their legal due diligence as part of the post-setup stage.

Collaborating with business setup firms like AstroLabs can greatly help streamline the entire company registration process.

Drawing on over 11 years of on-the-ground expertise, AstroLabs can help clients get operational in 3 months, thanks to its A-Z approach that enables a “full landing” in Saudi market.

The support offered by AstroLabs extends beyond mere company registration and includes assistance in addressing essential post-setup compliance matters.

Ongoing Compliance Requirements for International Businesses

Once operational, foreign businesses must maintain compliance with Saudi Arabia's regulatory framework through three critical areas that directly impact business operations and legal standing.

This typically includes adhering to the Saudization (Nitaqat) program and keeping company accounts on key government portals effectively managed and up-to-date, renewing business licenses and other foundational documents - the GM's Iqama and MISA license - as well as filing annual tax returns.

Frequently Asked Questions About Commercial Registration in Saudi Arabia

How long does commercial registration take in Saudi Arabia?

The commercial registration process takes 2-4 weeks, while the full operational setup, including visas and banking, can take up to three months. MISA licensing adds 5-7 business days to the timeline.

How do the new Trade Names regulations benefit foreign businesses in Saudi Arabia?

Foreign companies can now use non-Arabic names, reserve names in advance, treat names as assignable assets, receive stronger protection against unauthorized use, and maintain unique identities regardless of business type.

What compliance requirements must foreign businesses maintain in Saudi Arabia?

Companies must complete annual CR confirmations, maintain tax filing obligations (20% corporate tax, 15% VAT, and 5-20% withholding tax), meet Saudization quotas, and keep government portal registrations updated.

Can commercial registrations expire under the new law in Saudi Arabia?

No, CRs no longer expire but require annual confirmation. Companies must confirm registration information yearly to maintain good standing. Failure to confirm may result in suspension or cancellation. These changes represent the most significant commercial registration reforms in Saudi Arabia's history, driven by Vision 2030's goal to attract $100 billion in foreign direct investment by 2030.

Here’s a summary of key changes introduced by Saudi Arabia's new Commercial Registration Law

• Unified CR system: The law establishes a national commercial registration system that requires only one CR for all business activities.
• Grace period for existing companies: A five-year grace period allows existing businesses to rectify branch CR inconsistencies.
• Annual CR confirmation: Commercial registrations no longer expire but require annual information confirmation.
• Alternative penalty measures: The law introduces flexible enforcement mechanisms, including warnings, rectification orders, and graduated financial penalties.
• Bank account requirement: Companies must maintain bank accounts linked to their CRs.

Under the new regulations, inactive companies face CR cancellation after one year of non-operation, extending the previous 30-day timeline.