Saudi Arabia’s consulting sector is one of the fastest growing sectors, making it one of the most sought-after investment fields for foreign investors. For foreign consulting firms, especially those in IT and digital services, the window of opportunity is wide open.
Whether you specialize in technology, management, or AI-driven consulting, Saudi Arabia offers a strategic, high-growth environment for expansion.
If you’re considering launching a 100% foreign-owned consulting business in Saudi Arabia, here is a clear guide to the process, divided into three major phases. While timelines may vary slightly depending on the complexity of your business, most companies complete incorporation in 3 to 6 months.
CONSULTING COMPANY FORMATION IN THE KSA – 3 MAIN PHASES
Phase 1: Legal Entity Establishment
Setting up a legal entity is the foundation of your business journey in Saudi Arabia. This phase includes all essential registrations and government approvals.
- Secure a MISA Investor License
The first step is obtaining an investor license from the Ministry of Investment of Saudi Arabia (MISA). This license allows 100% foreign ownership in sectors approved by the Saudi government, including consulting services. - Name Reservation
You will need to reserve your company name through the Ministry of Commerce. It must comply with Saudi naming regulations and be unique within the registry. - Draft the Articles of Association (AoA)
Your AoA outlines the internal governance of your company. It needs to comply with local legal requirements and be notarized by an official notary service in Saudi Arabia. - Obtain Commercial Registration (CR)
Once your AoA is approved, you can apply for a Commercial Registration certificate. This is your company’s official registration with the Ministry of Commerce. - Register with the Chamber of Commerce (CoC)
This final step in Phase 1 makes your business a recognized commercial entity within Saudi Arabia and gives you access to a wide network of resources and services.
Phase 2: Operational Licensing and Workforce Setup
With your company now legally established, the next step is to prepare it for operation by completing essential regulatory registrations and setting up a local team.
- Secure a Company Seal
All legal and financial documentation will require an official company stamp, which must be obtained and registered. - Register with the Ministry of Labor
This allows you to legally hire employees and access government employment services, such as job postings and visa sponsorships. - Register with GOSI (General Organization for Social Insurance)
GOSI registration is mandatory for all businesses employing staff, ensuring that employee social insurance is in place. - Complete National Address Registration
All companies in Saudi Arabia must register a physical address through the Saudi Post’s National Address system. - Apply for the General Manager (GM) Visa
Once your legal entity is set up, you can sponsor a GM to represent the company in the Kingdom. This visa is essential for on-the-ground management and banking procedures. - Register with ZATCA and VAT
All foreign-owned businesses must register with the Zakat, Tax and Customs Authority (ZATCA). If your business exceeds the VAT threshold (SAR 375,000 annually), VAT registration is mandatory.
Phase 3: Residency, Compliance, and Banking
The final phase focuses on meeting local residency requirements and establishing operational infrastructure for your business.
- Activate Chamber of Commerce Account
This enables full access to CoC services such as contract validation and commercial document attestation. - Obtain Health Insurance
Health insurance is required for the General Manager and any other staff before their residency permits (Iqama) can be processed. - Medical Checkup
This is a mandatory step for obtaining the Iqama and must be completed at a government-approved medical facility. - Process the General Manager’s Iqama
Once the health check and insurance are complete, the GM’s residency permit can be issued. - Register on the Muqeem Platform
Muqeem is an electronic system used for managing resident permits, exits, and re-entries. - Register on Absher
Absher is the personal portal used to manage services like Iqama renewals, travel permissions, and other official tasks. - Complete Qiwa Registration
Qiwa is the Ministry of Human Resources platform used for managing employment contracts and Saudization compliance. - Register with Mudad System
Mudad handles payroll and wage protection, ensuring timely and compliant employee salary disbursements. - Open a Corporate Bank Account
Once all official registrations are complete and the GM has their Iqama, you can open a corporate bank account with any of the licensed banks in the Kingdom.
Why IT Consulting is Leading the Way?
Among all consulting sub-sectors, IT remains the fastest-growing in Saudi Arabia. The digital transformation push under Vision 2030 has created an enormous demand for tech expertise in artificial intelligence, smart city design, cybersecurity, and data analytics.
As of 2024, the ICT sector in Saudi Arabia is valued at over $48 billion (SAR 180 billion), making it the largest in the MENA region. The government has already invested more than $24.8 billion in digital infrastructure and continues to announce new mega-projects, including cloud data centers and AI parks.
According to Vision 2030 objectives, the IT sector is projected to grow by 50% and increase its contribution to the national GDP by SAR 50 billion (around $11 billion) by 2030.
Consulting Business Setup in Saudi Arabia
Starting a foreign-owned consulting business in Saudi Arabia may seem complex, but with the right knowledge and partners, the process is clear and manageable.
The regulatory framework is evolving rapidly to support international companies, and the market potential, especially in IT and AI, is vast and growing. Companies that establish a presence early will be well-positioned to take advantage of ongoing economic diversification and digital transformation.