Foreign Company Branch in Saudi Arabia 2026: Requirements & Steps
How to open a branch of a foreign company in Saudi Arabia in 2026: when a branch makes sense, requirements, documents, taxes and the steps.
Some of our clients come to us already decided: "I want a branch of my company in Saudi Arabia, same name, same management." Sometimes that is the right call. Often, once we go through what a branch actually means, they choose a Saudi company instead. Here is what opening a branch of a foreign company in Saudi Arabia involves, when it fits, and how it's done.
What is a foreign company branch?
A branch is an extension of your company abroad, not a new company. It carries the parent company's name, has no separate legal personality and no articles of association of its own, and its decisions come from the parent company. That has one major consequence: the parent company is responsible for the branch's obligations and debts.
Branch or Saudi company?
Comparison | Branch | Saudi company (LLC) |
|---|---|---|
Name | Same as the parent company | A new trade name |
Legal personality | None, part of the parent | Independent Saudi entity |
Liability | The parent company is liable | Limited to the company's capital |
Founding document | Parent company resolution | Articles of association |
Government tenders | Limited | Eligible for many tenders |
We cover the comparison in more depth in our article on foreign branch vs Saudi company (Arabic).
When does a branch make sense?
When the parent company wants to work in Saudi Arabia under its own name and brand.
When headquarters wants to keep every decision in its own hands.
When the parent company is large and stable, so carrying the branch's obligations isn't a real risk.
If you want to protect the parent company, or to compete for government tenders, a Saudi company is usually the better choice. See our guide to the LLC in Saudi Arabia.
Requirements to open a branch
An active parent company with at least one completed financial year and financial statements.
A clean record in its home country, with no unpaid taxes or social insurance.
A MISA investment license, with the entity type set as a branch.
Registration of the branch with the Ministry of Commerce.
Trading activities have the same extra condition as a company: 3 companies in 3 countries in different regions.
Documents required
The parent company's commercial registration and articles of association.
Its latest financial statements.
A board or partners' resolution to open the branch in Saudi Arabia.
A resolution appointing the branch manager, with a power of attorney setting out the manager's powers.
A copy of the branch manager's passport.
All documents must be notarized and attested in the home country and by the Saudi embassy.
Steps to open a branch in Saudi Arabia
1. Prepare the parent company's documents
We review them, prepare the resolutions and attest everything.
2. Get the investment license
We apply to the Ministry of Investment for the branch's activities. More on the MISA license.
3. Register the branch
The branch is registered with the Ministry of Commerce and gets its commercial registration under the parent company's name.
4. Register on government platforms
ZATCA, GOSI, Qiwa and the National Address, just like a company.
Taxes on a branch
A branch pays 20% income tax on its net profit, and withholding tax applies to some payments sent abroad. For the full picture, see our article on taxes in Saudi Arabia (Arabic).
Why EL-LWAA
We have been setting up companies and branches for more than 40 years and have formed more than 1,000 companies in Saudi Arabia. Before you decide, we go through both options with you and the cost of each. In this video, Mr. Salah Ellwaa explains full foreign ownership in Saudi Arabia:
Contact us to compare a branch and a Saudi company for your situation, or start through the ASSIS platform.
FAQ
Can the branch have a different name from the parent company?
No. A branch carries the parent company's name. If you want a new name, you need a Saudi company.
Is the parent company liable for the branch's debts?
Yes. The branch has no separate legal personality, so its obligations fall on the parent company.
Do I need a Saudi partner to open a branch?
No. A branch is fully owned by the foreign parent company.
Who manages the branch?
A branch manager appointed by a resolution of the parent company, with powers set out in a power of attorney.
Does a branch pay income tax?
Yes, 20% of its net profit, plus withholding tax on some payments abroad.
Can I switch from a branch to a Saudi company later?
If your plans change, you can set up a Saudi company and move the activity to it. Contact us to plan the move with the least cost.