Establishing a Branch Office in Saudi Arabia
Get to know the procedures, requirements, and advantages of setting up a branch office in Saudi Arabia
Establishing a Branch Office in Saudi Arabia
Characteristics of a Branch Office in Saudi Arabia
Legal Status & Liability
A branch office is not a separate legal entity but an extension of its foreign parent company. The parent company is fully liable for the branch’s financial obligations and liabilities. All decisions made by the branch office require the parent company to send a notarized and authenticated letter in paper format rather than electronically.
Ownership & Activity Scope
The parent company is authorized for 100% foreign ownership, although some sectors may restrict branch business activities. Branch offices are primarily established to focus activities within specific sectors, including contracting, consulting, or professional services.
Capital Requirements
There is no minimum capital requirement for a branch office; unlike LLC structures, financial guarantees may be required depending on the scope of business operations.
Registration & Licensing
A branch office requires licensing via the Ministry of Investment (MISA) and registration with the Ministry of Commerce (MoC). Unlike LLCs, a branch does not have to provide an articles of association (AoA) but is required to have a commercial registration (CR). Parent company documents must be attested and translated into Arabic to complete the business setup process in Saudi Arabia.
Taxation & Compliance
Profits attributed to non‑Saudi shareholders are taxed at a flat rate; the parent company bears responsibility for compliance, reporting, and tax filings. If the parent’s home jurisdiction has a double tax treaty with Saudi Arabia, potential benefits may include lower corporate tax obligations and reduced withholding taxes.
Timeline for Setup
The process typically takes around 2 to 3 months to complete.
Procedure for Establishing a Branch Office in Saudi Arabia
By following these steps, foreign companies can establish their branch office in Saudi Arabia.
Prepare Required Documentation
Obtain MISA License
Register with the Ministry of Commerce
Obtain a Commercial Registration (CR) Certificate
Open a Corporate Bank Account
Register with the Saudi Chamber of Commerce
Register with ZATCA
Advantages of Establishing a Branch Office in Saudi Arabia
Streamlined Setup Process
Centralized Operational Control
Strategic Alignment and Decision-Making
AstroLabs Advantage
| Offering | AstroLabs | Corporate Services Companies offering PRO & GRO | Law Firms | In-House |
|---|---|---|---|---|
| 40+ on-ground local team of experts |  |  | | |
| Government portal management and compliance support | | | | |
| Full management of your company licenses and certificates | | | | |
| Management of registered employees across the employee journey, from hiring to ongoing management | | | | |
| Full suite of support: PRO, GRO, HRs support and access to a pool of Saudi talent | | | | |
| National Address Registration with varied coworking and private office locations | | | | |
| Seamlessly manage GRO services online using a digital platform | | | | |
| Corporate bank account opening | | | | |
| Access to a community of 700+ high-growth businesses in Saudi Arabia | | | | |
| Extended media and exposure support through press releases, social media coverage and articles | | | | |
| Opportunity-matchmaking with potential partners in governmental entities and corporates | | | | |
| Access to global and regional events such as BIBAN, LEAP, Seamless, etc | | | | |