Regional Headquarters in Saudi Arabia

The Kingdom of Saudi Arabia (KSA) has become a commercial hub in the Middle East and North Africa (MENA) region. By shifting focus from black gold (oil and gas sector), the country has paved the way for various foreign investments in non-oil sectors. To facilitate the establishment of Multinational Companies (MNCs), the government introduced KSA’s Regional Headquarters (RHQ) scheme. Read the article to learn about regional headquarters in Saudi Arabia.

What is Regional Headquarters?

Regional headquarters is an office that functions as the primary base for carrying out the company’s operations in a particular region. This type of company is quite prevalent in the MENA region. The main activity is to organise and oversee the business operations of the company’s branches, subsidiaries, or affiliates.

Benefits of Setting up a Saudi Arabia Regional Headquarters

Establishing a regional headquarters in Saudi Arabia is a profitable idea as you will be able to position yourself in a strategic location while utilising the opportunities. Some of the appealing benefits of Saudi Arabia headquarters include -

Tax Exemptions

All regional headquarters in Saudi Arabia can enjoy exemptions on taxes. There is no corporate and withholding tax for 30 years on any business activity conducted by the company in the region.

Saudization 

Setting up a regional headquarters in KSA offers immunity against Saudization policies for a period of 10 years. The exemption allows you to hire a workforce of any nationality during the initial years of the business.

Access to Government contracts

Your business can apply for government tenders and access the Public Investment Fund (PIF).

Avail Work and Residency Visas

Saudi headquarters can apply for any number of work visas for their employees. Moreover, C-level executives can avail of residency visas without any charges.

Accreditation Exemptions 

Individuals who have professional accreditation in their home country do not need to apply for local professional accreditation.

Eligibility Criteria for RHQ License

To establish yourself in KSA, you will require a regional headquarters license. Also known as the RHQ license, it is issued to foreign MNCs by the Ministry of Investment for Saudi Arabia (MISA), enabling them to conduct operations within the country. However, to get this license and incorporate your Saudi Arabia regional headquarters, you will need to adhere to certain conditions like:

1. The MNC must be operational in the MENA region.
2. A physical office is mandatory.
3. Must have a minimum of three chief roles (C-level executives).
4. Business operations must start within six months after receiving the license.
5. The company must have a presence in at least two countries outside its headquarters and Saudi Arabia.
6. Must employ at least 15 full-time employees within one year of obtaining the RHQ license.

They are not allowed to engage in any commercial activity.

Documents Required to Establish a Regional Headquarters in Saudi Arabia

You must submit the following documents to the relevant authorities.

1. Valid license proving company establishment in two foreign countries
2. Certified financial statements of the previous financial year
3. Copy of the commercial registration certificate
4. Passport copies of shareholder/s
5. Passport-size photo
6. The business plan

How to Setup a Regional Headquarters in Saudi Arabia?

To establish a regional headquarters in Saudi Arabia, you need to follow the steps mentioned below: 

Step 1 - Fill out the RHQ license application form and submit it to MISA authorities along with the necessary documents.

Step 2 - Draft and submit your business plan. Ensure it entails the reason for establishing your business in KSA and provide information about investment and operations. 

Step 3 - Pay the necessary fees.

Step 4 - Register your company as a branch office of a foreign entity or a Limited Liability Company in Saudi Arabia.

Step 5 -. Make sure to undertake all the mandatory activities and choose at least three optional activities provided by MISA.

Step 6 - Register your regional headquarters in Saudi Arabia with Zakat, Tax and Customs Authority, and adhere to other necessary compliance requirements. 

Why Commitbiz?

Establishing a regional headquarters in Saudi Arabia will require the guidance of business consultants who have thorough knowledge of the business landscape in the country. Commitbiz has a team of over 175 professionals who understand the details of company incorporation, licenses and more. We offer allied services like visa assistance, banking, and local sponsor services to provide complete support in your business journey. Contact us to know more.