Service Company Setup in Saudi Arabia
Services are the most common way foreign investors enter Saudi Arabia. Consulting, marketing, training, facility management and technical services are licensed as services, allow up to 100% foreign ownership in most activities, and carry no statutory minimum capital for an LLC. The full setup typically takes 4–12 weeks. What varies from one service to the next is the regulator: some professions need an approval on top of the commercial license.
By Shaz and Nizam, consultants at Alpha Consultancy · Updated October 2026
At a glance
- Foreign ownership
- Up to 100% in most service activities
- Licenses
- MISA service license and MoC commercial service license
- Minimum capital
- No statutory minimum for most service activities (LLC)
- MISA license timeline
- 2–6 weeks
- Full setup timeline
- 4–12 weeks end to end
- Regulated professions
- Extra approval, e.g. engineering, accounting, legal
On this page
- 01How to set up a service company in Saudi Arabia
- 02What counts as a service activity
- 03Service activities that need a regulator's approval
- 04LLC, branch or Professional Company?
- 05Taxes that matter for service businesses
- 06Saudization in service businesses
- 07Mistakes that slow service companies down
- 08Service companies on the Saudi commercial register
- 09Frequently asked questions
How to set up a service company in Saudi Arabia
The standard path for a foreign-owned services LLC. Regulated professions add one approval in the middle; everything else follows the same sequence.
- 01
Classify your services and check for a regulator
Map each service to the Ministry of Commerce activity codes and confirm whether any of them needs a sector regulator's approval. Getting the codes right at the start avoids amending the license later, when the mismatch surfaces at the bank or the regulator.
Check your activity with the free MISA assessment - 02
Attest your corporate documents
A corporate shareholder's registration certificate, articles and, typically, last financial statements need attestation and certified Arabic translation. Individual founders need less. Start this first.
Document attestation service - 03
Obtain the MISA service license
The MISA license is the legal basis for foreign ownership and defines your permitted activities. A complete application is typically approved in 2–6 weeks and renews annually.
MISA license: requirements and timeline - 04
Notarize the Articles and extract the CR
The trade name is reserved, the Articles of Association are notarized, and the Ministry of Commerce issues the Commercial Registration for your service activities. This typically takes 1–2 weeks after the MISA license.
- 05
Secure the sector approval, where one applies
Engineering, accounting, legal, training, healthcare and education services sit under their own regulators. Their approval is a separate track, sequenced with the MISA license and CR for your profession.
Professional Company for licensed professions - 06
Complete post-incorporation registrations
ZATCA (VAT and corporate tax), GOSI, Qiwa, Mudad and Muqeem. These let you hire, sponsor visas and invoice compliantly, and late registration triggers automatic fines.
- 07
Open the bank account and issue the GM visa
The corporate bank account usually takes 2–4 weeks and follows the bank's own compliance timetable. The general manager's visa and iqama run in parallel.
Visa issuance service
What counts as a service activity
The commercial service license covers professional, technical and consultancy work. It is paired with a MISA investment license when the company is foreign-owned, and the two are filed as one engagement. Typical activities include:
- Management consulting and advisory
- IT consulting, software development and IT services
- Marketing, advertising and market research
- Engineering, architectural and technical design services
- Training and professional education
- Outsourcing and facility management
Service activities that need a regulator's approval
For most consulting, marketing and outsourcing businesses, the MISA license and the CR are all you need. A group of professions also needs approval from their own regulator, and that approval is separate from MISA. It cannot be skipped by choosing a broader activity code.
| Activity | Additional approval | Notes |
|---|---|---|
| Engineering and architecture consultancy | Saudi Council of Engineers | Often set up as a Professional Company |
| Accounting and auditing | SOCPA | Professional Company structure |
| Legal services | The legal profession's regulator | Professional Company structure |
| Training centers and institutes | TVTC training license | Foreign investors may hold one; e-training alone is not licensed under it |
| Healthcare and education services | The sector regulator for the activity | Confirmed before filing |
LLC, branch or Professional Company?
The LLC is the default for service businesses: one shareholder minimum, limited liability, 100% foreign ownership in most activities, and no statutory minimum capital for most service activities.
A branch office makes sense when contracts must be executed in the parent company's name, for example a tender that relies on the parent's track record. The trade-off is liability: a branch has no separate legal personality, so the parent carries its obligations in full.
A Professional Company is the structure designed for licensed professions such as law, accounting, engineering and architecture, recognized by both MISA and the relevant professional regulator.
Taxes that matter for service businesses
Corporate income tax is 20% on the share of profit attributable to foreign shareholders; Saudi and GCC shareholdings pay Zakat at 2.5% instead. VAT is 15%, and registration is mandatory above SAR 375,000 in annual taxable supplies.
Withholding tax of 5–20% applies to certain payments to non-residents. For a services business this cuts both ways. Payments your Saudi entity makes to the foreign parent, such as management or service fees, can attract it, and so can fees Saudi clients pay to a foreign company invoicing from abroad. Plan intercompany charges before the first invoice, not at year end.
Saudization in service businesses
Service companies are often people businesses, so the Nitaqat band matters early. It is set by sector and company size, and it governs your ability to issue work visas, renew iqamas and transfer staff. New companies get a grace period before the ratio applies.
Some service professions carry role-level rules on top of the band, including accounting and HR roles and a share of engineering positions, which must be held by Saudi engineers registered with the Saudi Council of Engineers. Check these before you fix a headcount plan.
Mistakes that slow service companies down
Services are the simplest setup path, but these mistakes still add weeks.
- Licensing as a consultancy but supplying equipment inside the contract. Goods need a trade license.
- Assuming the MISA license covers a regulated profession. The regulator's approval is separate.
- Using an activity code that does not match the regulator's list. TVTC, for example, asks for the CR's ISIC code to match a training activity it supervises.
- Hiring before the Qiwa and GOSI files are active, which delays visas and contracts.
- Comparing setup quotes that leave out the annual MISA subscription.
Service companies on the Saudi commercial register
Active registrations in the main service activities, from the Ministry of Commerce register. It shows how established each service market is and which cities existing providers cluster in.
| Activity | Active registrations | New last year vs year before | Leading cities |
|---|---|---|---|
| Management consultancies & head offices | 22,427 | +19.5% | Riyadh (12,727), Jeddah (3,598), Makkah (1,014) |
| Engineering & architecture consultancies | 11,564 | +6.6% | Riyadh (5,211), Jeddah (1,753), Makkah (605) |
| Advertising & marketing agencies | 41,697 | +13% | Riyadh (18,884), Jeddah (7,899), Makkah (2,637) |
| Recruitment & manpower agencies | 17,243 | +21.3% | Riyadh (5,315), Jeddah (2,754), Makkah (1,484) |
| Cleaning & facility management | 46,366 | +24.1% | Riyadh (18,283), Jeddah (6,810), Makkah (3,558) |
| Event & exhibition organisers | 22,969 | +12.8% | Riyadh (11,698), Jeddah (3,852), Makkah (1,593) |
| Training centres & institutes | 10,190 | +18.7% | Riyadh (4,830), Jeddah (1,491), Dammam (523) |
Source: Ministry of Commerce commercial register, active registrations as of 16 September 2026.
Frequently asked questions
- What is a service license in Saudi Arabia?
- It is the Ministry of Commerce commercial license for service-only activities such as consulting, marketing, technical services, design and IT services. Foreign-owned service companies pair it with a MISA investment license, and both are filed as one engagement.
- Can a foreigner open a consulting company in Saudi Arabia?
- Yes. Consulting is a service activity, and foreign investors can own up to 100% of the company under a MISA service license in most activities. No Saudi partner or sponsor is required.
- Do I need both a MISA license and a commercial license?
- Yes, if the company is foreign-owned. The MISA investment license permits foreign ownership, and the Ministry of Commerce commercial service license authorizes the activity. We file both as one engagement.
- Is there a minimum capital for a service company in Saudi Arabia?
- For most service activities there is no statutory minimum capital for an LLC. Capital must be declared in the Articles of Association but is generally not required to be blocked in a bank account. Some regulated sectors set their own thresholds.
- How long does it take to set up a service company in Saudi Arabia?
- The MISA license takes 2–6 weeks for a complete application, and the full setup is typically 4–12 weeks end to end. Document attestation and bank onboarding, which takes 2–4 weeks, are the usual variables.
- How much does it cost to set up a service company in Saudi Arabia?
- The first-year total depends on the activity, the shareholder type and the MISA subscription. That covers the MISA license and subscription, government fees, professional fees and document costs. The recurring annual costs are the figure to plan around.
- Which service activities need extra approvals in Saudi Arabia?
- Engineering, accounting, legal, training, healthcare and education services need a sector regulator's approval on top of the commercial license. Examples are the Saudi Council of Engineers for engineering and SOCPA for accounting. We confirm your activity first.
- Can a service company sell products too?
- No. Trading activities need a separate commercial trade license. A company can hold both, but each activity must be declared and licensed.
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