24th July 2025
How to Start a Trading Company in Saudi Arabia – 2025 Guide
Starting a trading company in Saudi Arabia in 2025 is a strategic move for investors and entrepreneurs looking to tap into one of the most dynamic markets in the Middle East. With the Saudi economy growing and reforms under Vision 2030 attracting global attention, company formation in Saudi Arabia has never been more promising.
Whether you’re a local entrepreneur or a foreign investor, understanding the process of company formation in KSA (Kingdom of Saudi Arabia) is essential. Here’s a simplified, step-by-step guide to help you establish your business with confidence.
- Step-by-Step Saudi Company Formation Process
Step 1: Choose the Ownership Structure
- 100% Foreign Ownership:Allowed if your foreign parent company has subsidiaries in at least 3 different countries and is more than 1 year old, you're eligible to fully own a Saudi LLC company.
- Saudi Partner (Optional): Not eligible for full foreign ownership? You can still proceed by partnering with a Saudi national or entity.
Step 2: Reserve Your Company Name
- Use the Ministry of Commerce (MoC) portal to reserve a unique name.
- Ensure the name aligns with Saudi naming conventions and your trading activity.
Step 3: Get Your Foreign Investment License (MISA)
- For foreign-owned setups, apply to the Ministry of Investment of Saudi Arabia (MISA).
- Required documents:
- License copy of the parent companies
- Copy of the audit report of the parent companies
- Copy of the Board Resolution
- Company profile
- Passport copies of shareholders/directors
Step 4: Draft and Notarize Articles of Association (AoA)
- Finalize your AoA.
Step 5: Obtain Your Commercial Registration (CR)
- After MISA approval, proceed to secure your Commercial Registration (CR) this acts as your business license.
- This is a core step in the Saudi company formation process.
Step 6: Register with Tax and Labor Departments
- ZATCA: Register for VAT/Zakat
- GOSI: For employee social insurance
- Municipality License: Required based on office location
- Chamber of Commerce: Mandatory registration for all entities
Step 7: Secure a Physical Office Location
- A valid business office is required—virtual addresses are not allowed for trading licenses.
- The space must meet Civil Defense and municipal compliance standards.
Step 8: Open a Corporate Bank Account
- Present your CR, AoA, office lease, license copy of the parent company and MOA of the parent company.
- Some banks may ask for in-person verification by company representatives.
Step 9: Hire Staff and Meet Saudization Targets
- All trading companies must comply with the Nitaqat program.
- Your required Saudi workforce quota depends on your business activity and size.
Step 10: Apply for an Import License (if needed)
- Register on Saber and FASAH platforms
- Complete the licensing process with ZATCA if you plan to import goods.
- Step-by-Step Saudi Company Formation Process
- Minimum capital: SAR 30 Million for foreign-owned trading companies
- Foreign documents must be attested in your home country and Saudi embassy
- Arabic translations are mandatory and must be certified
- Why Choose Saudi Arabia for Your Business?
- 100% foreign ownership allowed for qualifying businesses
- Gateway to GCC and wider Middle East markets
- No personal income tax
- Access to giga-projects and Vision 2030 business incentives
- Robust reforms and updates covered frequently in Saudi Arabian business news
- Why Choose Saudi Arabia for Your Business?
At Arabian Business Quest, we’re proud to be one of the leading company formation consultants in Saudi Arabia. As part of Quest Global Saudi Arabia, we specialize in guiding businesses through every stage of Saudi company setup—from licensing and documentation to office leasing and regulatory compliance.
Whether you’re starting a trading company, looking for business office solutions, or seeking assistance with licensing in company formation Saudi, we offer customized support that ensures your launch is smooth and successful.
- Let's Get Started
Thinking about company formation in Riyadh, Jeddah, or anywhere in KSA? Contact Arabian Business Quest today for tailored guidance on company formation Saudi Arabia and build your presence in one of the world’s most exciting business destinations.