Set Up a Manpower Supply Business in Saudi Arabia
Learn how to open a manpower supply business in Saudi Arabia and grow your recruitment enterprise efficiently.
Why Consider a Recruitment Agency Business in Saudi Arabia?
Saudi Arabia presents significant opportunities for manpower supply and recruitment businesses, driven by its booming economy, expanding industries, and growing demand for skilled workers.
Companies seeking to set up a business in Saudi Arabia can leverage the country’s robust digital infrastructure and thriving corporate sector to establish a successful enterprise, scaling rapidly by focusing on tailored hiring solutions and niche markets.
Setting Up a Manpower Supply Agency: Key Steps
First Stage: Legal Entity Establishment (1 Month)
- Obtain a MISA Investor License (valid for one year)
- Reserve company name
- Draft & notarize Articles of Association (AoA)
- Secure Commercial Registration (CR) from the Ministry of Commerce
- Register with the Chamber of Commerce (CoC)
Second Stage: Authorization & Hiring (2–3 Months)
- Obtain the official company seal
- Register with the Ministry of Labor
- Enroll with GOSI for employee insurance
- Register the business National Address
- Issue a General Manager (GM) visa
- Register with ZATCA for VAT compliance
Licensing Requirements
Recruitment agencies in Saudi Arabia must choose between two licenses
Local Recruitment License
Authorizes the agency to source and place local talent in companies across Saudi Arabia.
International Recruitment License
Enables the agency to hire and place Saudi nationals as well as foreign workers in both local and overseas organizations.
Post-Incorporation Requirements for Manpower Supply Agencies
Tax Filing with ZATCA
Corporate income tax is set at 20% of net adjusted profits, withholding tax ranges from 5% to 20%, and Zakat applies at 2.5% of the company’s Zakat base.
Business License Renewals
Foreign businesses must monitor and renew essential licenses, including the General Manager’s Iqama, Commercial Registration (CR), and MISA license.
Government Platform Management
Businesses must maintain accurate and up-to-date records on essential government platforms like Muqeem, Qiwa, and Mudad. Because these systems are interconnected, noncompliance on one platform can cause cascading operational issues.
Payroll and HR Compliance
Companies employing Saudi and foreign talent must ensure correct salary payments and maintain precise payroll records in line with labor laws, which are frequently updated. Staying compliant can be challenging for those unfamiliar with local HR regulations.
Saudization (Nitaqat) Requirements
Saudi labor law mandates that companies meet Saudization quotas based on their size and sector. Noncompliance may place a business in the Red Zone, resulting in operational restrictions and potential penalties.
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 | | | | |