The lowest cost option to incorporate a company in Saudi Arabia and obtain residency permit (Iqama)

Easiest and lowest price method to obtain KSA residency

Expanding your business into the Kingdom of Saudi Arabia (KSA) is no longer just a strategic market move—it is a direct gateway to long-term residency in one of the world’s largest economy and largely untapped market.

Depending on the type of business it can be easy or difficult to register the company, not to mention obtaining KSA residence visa known as Iqama.

• Obtaining residents permit Saudi Arabia can EXTREMELY capital intensive, depending on the entry method.

There are three main routes for foreigners that are looking to relocate to Saudi Arabia or international interested to set up a regional branch in the country Kingdom of Saudi Arabia (KSA)

• For individuals that are looking to obtain residency but does not wish incorporate a company, business owners and executives can secure a Residency Permit (Iqama) or even Premium Residency by paying an annual fee of 100,000 Saudi Arabia Rials (SAR) or 800,000 SAR for a lifetime Iqama.

How to set up a branch of a foreign company in Saudi Arabia and apply for Iqama

1. Register a service based company that does not have difficult capital require or global branches requirement
   • Simple registration requirement of having a parent company that has been established for 1 year without any financial requirements.
   • It is possible to obtain a residency iqama without large capital outlay.
   • There is no requirement of the company needing to be innovative in order to be approved for Saudi residence iqama permit.
   • This is the lowest cost option to obtain Iqama residency status in Saudi Arabia
2. Incorporate a new trading company requires a capital of 30 million SAR for a 100% foreign owned business
   • Also requires the company to have three branches globally, it is not possible to incorporate a brand new company.
     • A foreign owned company with a Saudi Arabia national involved as part of the ownership structure, can the share capital required to open company in KSA to 26 million SAR
3. Saudi owned company requires 15,000 SAR in share capital
   • While this option seems optimal International, clients may find it difficult to find a Saudi national that they can trust and partner with.

Why Open a Branch Office in Saudi Arabia?

A branch office is an extension of your existing foreign company.

Unlike a subsidiary, it does not to follow a complex new incorporation setup rules and allows:

• 100% Foreign Ownership: No local Saudi partner is required.
• Direct Sponsorship: The branch can sponsor the residency (Iqama) for its General Manager and employees.
  • After the general manager their residency iqama, they need to hire one Saudi national before three additional Iqama slots becomes available to hire foreign workers.
    • The Saudi national must earn a minimum of 4,000 SAR monthly, which comes to slightly over $1060 monthly.
• Simplified Tax: While subject to a 20% corporate tax on profits, the branch operates under the legal umbrella of the parent company.

Step-by-Step Process to Setup a Branch & Obtain Residency

Step 1: Secure the MISA Investment License

Obtaining a license from the Ministry of Investment of Saudi Arabia (MISA) authorizes your foreign entity to operate in the Kingdom.

• Documents needed: Audited financial statements of the parent company, a board resolution to open the branch, and a certified Articles of Association.

Step 2: Commercial Registration (CR)

Once MISA approves, you must register with the Ministry of Commerce. You will receive your Commercial Registration (CR) certificate, which is the “birth certificate” of your Saudi branch.

Step 3: Office Lease & Municipality License

You must secure a physical commercial address. This lease must be registered through the Ejar system to prove the company’s physical existence.

Step 4: Chamber of Commerce & Tax Registration

Register with the Saudi Chamber of Commerce and the Zakat, Tax and Customs Authority (ZATCA) to ensure the branch is tax-compliant from day one.

Step 5: Visa Issuance & Medical Check

With the CR in hand, the company can now apply for the General Manager’s Visa via the Qiwa platform. Upon arrival in Saudi Arabia, the applicant undergoes a medical exam and registers for health insurance to receive their physical Iqama card.

Key Differentiators

1. The “Investment Barrier”

• Service Branch: Ideal for consulting, IT, or marketing firms.
  • It is the cheapest and fastest way to get a Saudi residency permit because you do not need to invest millions into Saudi Arabia.
• Trading Company: If you want to sell physical goods (wholesale or retail), MISA requires a massive capital commitment to protect the local market.
  • For 100% foreign ownership, you must typically commit to investing SAR 200 Million over 5 years with an initial investment required of SAR 30 Million before the license is issued.

2. Number of Branches

• Service Branch: You only need one license registered in a foreign country to obtain your residency in KSA.
  • You can perform services for clients anywhere in the Kingdom from that single location.
  • It is necessary to own one foreign business that has been incorporated for at least 1 year, generating a certain level of financial revenue.
• Trading Company: MISA expects a presence in multiple regions or a large-scale warehouse/logistics center.
  • It is necessary to own branches companies in 4 different countries before being eligible to apply for a license in this category.

3. Residency (Iqama) Nuances

• Service Branch: The residency is often issued under the title “General Manager” or “Technical Specialist.”
• Trading Company: Because of the high capital, owners of Trading Companies are eligible for the Premium Residency (Investor) much more easily, which grants permanent residency rights without needing a yearly renewal of the traditional Iqama.
  • 100,00 SAR For an annual visa that is to be renewed yearly or 800,000 SAR for a lifetime Saudi Iqama Visa.

Summary Checklist for 2026

• Choose a Service Branch if: You are a professional, consultant, or agency looking for a low-cost “Resident Visa” path to relocate to KSA.
• Choose a Trading Company if: You are a large-scale manufacturer or retailer ready to move millions of dollars of inventory and require a major market share.