Step-By-Step Guide To Starting A Business In Saudi Arabia In 2025

Being the fastest-growing economy in the Middle East, Saudi Arabia offers great potential for entrepreneurs and investors. With strong government support and major reforms under Vision 2030, the country is opening up new business opportunities across various sectors. That’s why starting a business in Saudi Arabia in 2025 is now easier and more rewarding than ever.

The government has improved key processes like commercial registration in Saudi Arabia and made it possible for foreigners to fully own companies in many sectors. These changes help both local and international investors set up their businesses with less hassle and more clarity. More services are now online, making the setup faster and more efficient.

At Express Business Service, we help you every step of the way—from getting your Saudi business license to completing all legal requirements. This thorough guide will bring you through the steps required for successfully registering your venture in the Kingdom, ensuring a smooth and compliant process.

The Business Landscape In Saudi Arabia In 2025

In 2025, Saudi Arabia is not just open for business—it’s actively shaping its future around it. With Vision 2030 in full motion, the Kingdom is moving beyond oil and investing in high-growth sectors like technology, tourism, logistics, and clean energy. The market is expanding steadily, and consumer demand continues to rise. For those ready to act, Saudi Arabia offers the right environment, strong support and the momentum needed to launch and grow with confidence.

The Step-by-Step Guide to Start a Business in Saudi Arabia in 2025

Lets understand the essential steps to start a business in the Kingdom with the support of Express Business Service—your trusted partner for seamless company set up in Saudi Arabia –

1. Define Your Business Activity and Legal Structure

Before you begin the process of starting a business in Saudi Arabia, it’s essential to clearly identify your business activities. Each activity falls under specific regulations, licensing authorities, and capital requirements. The Ministry of Investment (MISA) and the Ministry of Commerce (MoC) provide detailed lists of approved business sectors.  

At this stage, you must also decide on the best legal structure for your business. The most common types include –

• Limited Liability Company (LLC) – Ideal for small to mid-sized businesses. Offers flexibility and limits liability for shareholders.
  
• Joint Stock Company – It is perfect for big organizations with more financing needs and more investors.
  
• Branch Office – Ideal for foreign businesses desiring to conduct business in Saudi Arabia without creating an individual legal company.
  
• Simplified Joint Stock Company (SJSC) – This is designed for startups or single-investor ventures, offering more flexible regulations.

2. Obtain an Investment License from MISA

The following action is to submit an application for an investment license from the Ministry of Investment of Saudi Arabia (MISA). This license is required for investors which gives your business legal status in the Kingdom.

To apply, you will typically need –

• A detailed business plan
• Company ownership documents
• Identification and legal papers for shareholders

3. Reserve Your Company Name

Once you have obtained your MISA license, you need to register a company name with the Ministry of Commerce. The name must be unique and meet certain guidelines. As of 2025, the rules allow the use of non-Arabic names and enforce stricter measures to prevent duplicate or overly similar names.

This step ensures your business identity is protected and is a requirement for further registrations.

4. Legalize and Notarize Founding Documents

Your company’s foundational documents such as the Articles of Association and Board Resolutions must be legalized and notarized before submission.

The process usually involves –

• Legalization in your home country
  
• Attestation by the Saudi Embassy in your country
  
• Notarization inside Saudi Arabia by a registered notary

5. Register with the Ministry of Commerce (Commercial Registration)

The commercial registration (CR) is your official Saudi business license. You have to sign up with the Ministry of Commerce before submitting your MISA license, legalized papers, and office address.

With the digital transformation in Saudi Arabia, much of this process can now be done online. Partnering with Express Business Service ensures a smooth registration experience with minimal delays.

6. Obtain Municipality, Chamber & Labour Approvals

After receiving your commercial registration, several additional approvals are needed to start operations:

• Municipality License (Baladiya): This license is needed for your physical office or business premises and must align with your business activities.
  
• Chamber of Commerce Membership: It is required to access government services and carry out business activities.
  
• Labour Approvals (HRSD): If you plan to hire employees, you must register with the Ministry of Human Resources and Social Development. This includes following Saudization rules, registering employee contracts and handling work permits through platforms like Muqeem and Absher.

7. Register for Taxes and Social Insurance

Once your business is legally established, it must be registered for taxation and employee insurance –

• The Zakat, Tax and Customs Authority (ZATCA) for VAT and other corporate taxes
  
• The General Organization for Social Insurance (GOSI) to fulfill employee benefits and pension obligations.

Even if you’re not immediately taxable, it’s crucial to remain compliant with evolving tax laws in the Kingdom. We at Express Business Services help businesses maintain ongoing compliance with both tax and insurance bodies.

8. Open a Corporate Bank Account and Secure Office Space

The last step is to create a Company Bank Account You’ll need your commercial registration, investment license, and identification documents for shareholders or directors. Bank onboarding can take time, especially for foreign-owned companies, so it’s advisable to plan early.

Additionally, you’ll need to secure a physical office or workspace in line with municipal regulations. Some business activities may allow virtual offices, but most require a real commercial space to meet licensing conditions.

Benefits of Setting up a Business in Saudi Arabia

Saudi Arabia offers a wealth of advantages for entrepreneurs which makes it an ideal destination for business setup in the Middle East. These benefits include –

• Record Growth in Business Registrations – Saudi Arabia is experiencing rapid growth in new business registrations. In 2024 alone, the Ministry of Investment (MISA) reported a 17% rise in foreign investment licenses. This reflects the Kingdom’s strong appeal to global investors, supported by Vision 2030 and ongoing economic reforms.
  
• Gateway to Global Markets – Saudi Arabia is a great place for companies with worldwide aspirations because of its strategic location connecting Asia, Europe, and Africa. Major cities like Riyadh, Jeddah, and Dammam act as key economic centers, offering modern infrastructure and access to a large and growing market.
  
• 100% Foreign Ownership – Nowadays, foreign investors can own all of their companies in the majority of industries without the need for a local partner. This policy offers greater freedom and control to make it easier and more attractive for international entrepreneurs to start a business in Saudi Arabia.
  
• Attractive Tax Structure – The tax-friendly environment is one of the main benefits. The corporation tax rate for foreign investors is typically 20%, and there is no personal income tax. Businesses in certain free zones may also enjoy tax exemptions and additional incentives.
  
• Booming Sectors – Saudi Arabia is making significant investments in important industries including healthcare, tourism, renewable energy, and technology. These industries are expanding rapidly under Vision 2030, creating valuable opportunities for new and existing businesses.
  
• Investor-Friendly Reforms – Saudi Arabia is becoming a top investment destination for foreigners due to many reforms in recent times. With simplified regulations and government support, more international companies are entering the market, driving growth and innovation.

Conclusion

Starting a business in Saudi Arabia in 2025 is a smart step toward tapping into one of the world’s most rapidly growing economies. By taking the appropriate steps and partnering with Express Business Service, you can establish a successful venture with ease. Our dedicated team is committed to making your company setup in Saudi Arabia smooth, efficient, and fully compliant.

Don’t let the complexities of the process hold you back. Contact Express Business Service today and take the first definitive step towards achieving your entrepreneurial dreams in the Kingdom.  

Also Read: Guide To MISA License For Foreign Companies