From Germany to Saudi Arabia
How to Set Up a Business in Saudi Arabia from Germany
A Blueprint for German Companies
Establish your German business in Saudi Arabia with a customized, step-by-step guide designed specifically for German companies. From company formation and licensing to operational launch and ongoing compliance, AstroLabs’ local experts ensure a smooth and successful market entry.
Company Formation from Germany to Saudi Arabia in Sector-Specific Markets
Germany and Saudi Arabia have robust bilateral relations that span trade, manufacturing, and industrial innovation. As Saudi Arabia undergoes rapid transformation under Vision 2030, German companies are uniquely positioned to expand into a dynamic, future-focused market. In 2024 alone, German exports to Saudi Arabia reached $9.53 billion, underscoring the strength and potential of this partnership across high-growth sectors.
1. Automotive & Industrial Machinery
Germany exported $4.8B worth of motor vehicles to Saudi Arabia in the first 7 months of 2024. Industrial machinery exports also rose by 24.1% in 2023. This sector is one of the strongest bridges between the two economies.
2. Manufacturing & Engineering
German engineering and precision equipment are in high demand as Saudi Arabia builds infrastructure and industrial zones under Vision 2030. Key players like Siemens and Bosch are already operational in the Kingdom.
3. Energy, Sustainability & Infrastructure
With Germany’s global leadership in renewable energy, and 7 new MoUs signed in 2023 across energy, logistics, and infrastructure, KSA is welcoming green German innovation to support its sustainability goals.
Company Formation in Saudi Arabia from Germany: Step-by-Step Guide
Step 1: Prepare Company Documents
Start by gathering essential documents, including:
- Certificate of Incorporation
- Memorandum and Articles of Association (MoA and AoA)
- Audited financial statements
- Board resolution to expand into Saudi Arabia
These documents must be legalized and translated into Arabic.
Step 2: Obtain MISA License
Apply for an investment license from the Ministry of Investment of Saudi Arabia (MISA). This step officially allows your foreign entity to operate in the Kingdom.
Step 3: Register with Government Entities
You'll need to complete registration with multiple Saudi governmental bodies:
- Ministry of Commerce (MoC) - for commercial registration
- Zakat, Tax and Customs Authority - for tax compliance
- General Organization for Social Insurance (GOSI)
- Chamber of Commerce
- Saudi Post - to obtain a national address
You’ll also need to choose a physical office space to meet the national address requirement.
Step 4: National Address Management:
Ensuring accurate updates and renewals on the SPL portal.
Step 5: Appoint a General Manager and Obtain an Iqama
Foreign companies in Saudi Arabia must register on core platforms to ensure legal compliance:
- Muqeem: employee sponsorship management
- Absher: government services portal
- Qiwa: workforce management
Mudad: wage protection and payroll compliance
Step 6: Open a Corporate Bank Account
Once your business is legally registered and operational, open a Saudi corporate bank account to handle transactions, payroll, and vendor payments.
Step 7: Hire and Issue Visas
Hire local employees in line with Saudi Arabia’s Saudization (Nitaqat) quota system. For international hires, you’ll need to issue work visas under the company’s sponsorship.
Avoid Common Cases of Non-Compliance in Saudi Arabia with AstroLabs’ GRO Solutions
Missed Deadlines
Fines and delays from late renewals or submissions
Operational Interruptions
Incomplete or outdated official documents causing business interruptions
Amendment Needs
Challenges in updating business activities, management structures, or shareholder details
Portal Issues
Delayed updates to key government platforms like SPL or CoC
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 | | | | |
| Corporare 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 | | | | |