A definition of the service for issuing a regional headquarters license
The service of issuing a regional headquarters license is an investment and regulatory service provided by the Saudi Ministry of Investment. It aims to enable foreign companies to establish regional offices in the Kingdom of Saudi Arabia that represent them and manage their commercial operations within the region. The regional headquarters license is considered a significant step to enhance the presence of international companies in the Saudi market, as it allows the regional headquarters to manage and track the company's business in a specific geographical area without engaging in direct commercial activity, such as selling or distribution, while complying with Saudi regulations and controls.
This service is granted to foreign companies that wish to:
Coordinate the work of their branches or agencies in the GCC countries or the Middle East.
Manage financial, administrative, and marketing operations on behalf of the parent company.
Enhance cooperation with local partners and facilitate expansion into local markets.
The regional headquarters is permitted to practice management and support activities within the legally specified limits.
The importance of the service for issuing a regional headquarters license:
Enabling foreign companies to coordinate their work and expand their presence in the region with ease and flexibility.
Supporting the transfer of expertise and knowledge between the regional headquarters and the parent company to enhance operational effectiveness.
Enhancing trust with local partners and government agencies through the presence of an officially accredited regional office.
Facilitating the centralized management of regional operations to achieve better results against a set of regulatory requirements.
Reducing costs and efforts compared to establishing independent branches in each country in the region.
Keeping pace with Saudi Vision 2030 in attracting global investments and providing a developed work environment.
Difficulties related to completing or issuing a regional headquarters license:
Strict conditions for authenticating and translating documents, which may prolong the processing times.
The need for the parent company's board of directors' approval and providing official minutes proving the decision to establish the regional office.
A clear definition of the scope of work and geographical boundaries of the office, which may require a detailed legal and technical review.
Target Sector
Trader
Affiliated Authority
Ministry of Investment
Estimated Duration2 days
Gov Approval Window5 working days
Service Pricing30000
Government Fee12000
Mandatory Conditions
✓The Multinational Group has minimum presence in two different countries, excluding the Kingdom of Saudi Arabia and the country in which the headquarter of the Multinational Group is located, either through Subsidiaries or Branches.
✓The RHQ is established as a separate legal personality in the Kingdom of Saudi Arabia either as a company or as a registered branch of a foreign company.
✓The RHQ shall not directly conduct commercial operations that generate revenue other than RHQ License activities.
✓The RHQ must commence the mandatory RHQ activities within six months of issuing the License.
✓The regional headquarters must begin implementing at least 3 optional activities within one year from the date of granting the license, provided that the applicant selects the optional activities during the submission of the license application.
✓RHQ employees carrying on mandatory RHQ License activities must have the relevant skills and knowledge developed at the headquarters or another regional headquarters of the Multinational Group, at least 3 employees of which must be of Executive Director level and Vice-President level.
✓Commitment to employ at least 15 full-time employees in implementing the activities of the regional headquarters within one year from the date of granting the license, including the aforementioned senior executives.
✓The RHQ License is subject to cancelation by the Ministry of Investment in any of the following situations:( Failure to commence the mandatory or optional RHQ License activities, or hiring the minimum number of employees, within the stipulated time periods /The cessation of any mandatory RHQ activities or a minimum of three optional RHQ activities/ The cessation of satisfying any of the RHQ License conditions by the RHQ or the Multinational Group/ Violation of any licensing regulation established by MISA constituting ‘Grounds for Cancellation’)
✓Payment of fees within 15 days.
✓Required Data: (Email - Absher Phone Number - Phone Number in the Company's Country - Regional Activities - Partners & Managers IDs - City in which the License is Requested).
Required Documents
✓Providing Copies of at least two commercial registrations or commercial licenses issued in two different countries, excluding the Kingdom of Saudi Arabia and the country in which the headquarters of the Multinational Group is located, attested at the level of the Saudi Embassy in the respective countries.
✓The annual audited consolidated financial statements of the last financial year of the applicant, attested at the level of the Saudi Embassy in the respective country.
✓The establishment contract for the facility is certified by a Saudi embassy.
✓National Address.
✓A copy of the national IDs for partners and managers (Either Saudis or residents).