Setup Your Regional Headquarters in Saudi Arabia with Massar.
Massar facilitates the seamless establishment of your Regional Headquarters (RHQ) in Saudi Arabia. Connect with us for efficient setup of your RHQ in KSA.
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Understanding Regional Headquarters in Saudi
Saudi Arabia has launched a Regional Headquarters (RHQ) Program to attract multinational companies to establish their units in the Kingdom. Developed jointly by the Ministry of Investment (MISA) and the Royal Commission for Riyadh City (RCRC), this initiative encourages companies to set up RHQs for improved global coordination and business operations. To qualify, entities must be foreign-registered, maintain at least two subsidiaries abroad, and have a regional administrative presence. The program emphasizes tax-efficient structuring and aims to have 480 companies open RHQs by 2030, contributing significantly to Saudi Arabia’s economic growth.
Key Facts of Establishing an
Regional headquarter in Saudi Arabia
30 Years
Tax Exemption
Companies establishing their regional headquarters in Saudi Arabia benefit from a remarkable 30-year exemption from corporate income tax (CIT) and withholding tax (WHT) under the Saudi RHQ program.
10 Years Exemption From Saudization
Enjoy a notable 10-year exemption from Saudization requirements, offering flexibility in workforce management and facilitating a smooth corporate venture in Saudi Arabia.
Exceeding Targets with 180+ RHQs in 2023
In 2023, the RHQ initiative surpassed its target, with over 180 RHQs established, demonstrating effectiveness in attracting international businesses well ahead of the 2024 goal of 160.
Additional Benefits of
RHQ Saudi Arabia
- 30-year tax break and business-friendly regulations
- 10-year exemption from Saudization requirements
- Issue unlimited visas for executives and employees
The combination of strong governmental support, enticing financial incentives, and favorable business regulations positions Saudi Arabia as a strategic and attractive choice for international companies aiming to establish a regional headquarters.
Companies can also enjoy waivers of professional accreditation rules, eligibility for government tendering post-2024, and significant tax advantages, including a 50-year tax holiday. These financial incentives contribute to a favorable and competitive financial setting for companies operating from Saudi Arabia.
Furthermore, businesses that start a regional headquarters in Saudi Arabia can benefit from spousal work permits and an extended age limit for dependents up to 25 years old, coupled with a cost-competitive business environment compared to many developed economies, featuring a relatively low cost of living and a safe atmosphere.
About Massar
How Can Massar Assist in Setting up an RHQ in Saudi Arabia?
Massar is your trusted partner for establishing a regional headquarters in Saudi Arabia. We provide comprehensive company formation services and ongoing business support tailored to your needs. With over a decade of industry experience, we offer strategic guidance, ensure regulatory compliance, and streamline business processes for a successful transition into starting a Regional Headquarters in Saudi Arabia.
Get an Estimated Cost of
Starting a Business in Saudi Arabia
Explore the estimated cost of starting a business in Saudi Arabia using our intuitive cost calculator.
How to Establish Your RHQ in Saudi Arabia
Establishing a Regional Headquarters (RHQ) in Saudi Arabia: A Step-by-Step Guide
1. Eligibility
Companies seeking to establish an RHQ in Saudi Arabia must already have an established presence outside the country.
2. Basic Requirements
Applicants must meet specific criteria, including having a commercial registration attested at the relevant level.
3. RHQ License Application
– Acquire an RHQ license from the Ministry of Investment (MISA).
– Key regulatory requirements include employing a minimum of 15 full-time employees, including at least three C-level executives.
4. Application Documentation
– Provide evidence of legal presence in at least two different countries.
– Submit annual audited financial statements for the previous fiscal year.
– Develop and present a business development plan for the RHQ.
5. Commitment to Mandatory Activities
Businesses must commit to fulfilling all mandatory licensing activities outlined in the RHQ Program terms.
This includes submitting a comprehensive business plan (including budget), financial reporting, and strategic coordination.
Massar Facilitates RHQ Formation Across Saudi Arabia
Massar is your trusted partner for setting up RHQs across Saudi Arabia. With over 15 years of global experience and a strong presence in KSA, Massar excels in navigating government regulations and providing comprehensive solutions for seamless RHQ formation.
Dammam
Utilize our expertise to establish a regional headquarters in Dammam, a key business hub in the Eastern province of Saudi Arabia.
Riyadh
Relocate your RHQ to Riyadh, the capital city of KSA, with our comprehensive support and top-tier business consultancy services.
Jeddah
Located on the Red Sea coast, Jeddah offers excellent international connectivity, and our strategic solutions facilitate an effortless RHQ setup.
Schedule a Free Consultation with our Business Advisor
Our team of experienced business setup experts is here to guide you through the process. Book a FREE business consultation call today and get answers to your most crucial question
- What is the ideal business structure for your goals?
- Which Saudi jurisdiction suits your business type?
- How can you benefit from Saudi’s tax advantages?
- What are the key steps for a successful business formation?
F. A. Q
Frequently Asked Questions
RHQ Saudi Arabia refers to the Regional Headquarters Program in Saudi Arabia, an initiative by the Ministry of Investment and the Royal Commission for Riyadh City to attract multinational companies to establish their units in the Kingdom.
To qualify for a Regional Headquarters (RHQ) license in Saudi Arabia, companies must have foreign registration, maintain two subsidiaries abroad, and establish a regional administrative presence. Additionally, they should fulfill criteria such as commercial registration attestation and employ a minimum of 15 full-time employees, including three C-level executives.
The Saudi Arabia Programme HQ is an initiative jointly developed by the Ministry of Investment and the Royal Commission for Riyadh City to encourage companies to establish Regional Headquarters (RHQs) in the Kingdom. The program emphasizes tax-efficient structuring and aims to have 480 companies open RHQs by 2030, contributing to Saudi Arabia’s economic growth.
Companies setting up a Regional Headquarters (RHQ) in Saudi Arabia can enjoy significant tax benefits. The Saudi Arabian government offers a 30-year tax break to incentivize international businesses. Additionally, there is a 50-year tax holiday, providing a favorable and competitive financial setting for companies operating from Saudi Arabia.
Yes, companies establishing Regional Headquarters (RHQs) in Saudi Arabia are eligible for government tendering post-2024. This means that businesses operating under the RHQ Program can participate in government procurement processes, opening up additional avenues for growth and collaboration.
The timeline for obtaining a Regional Headquarters (RHQ) license in Saudi Arabia can vary. Once all required documentation is submitted, the Ministry of Investment (MISA) typically processes applications efficiently. However, the exact duration may depend on factors such as the completeness of the application, regulatory changes, and the current workload of the authorities. Engaging with Massar, our experienced team can guide you through the process for a streamlined and expedited application.
Massar offers support beyond the initial setup of a Regional Headquarters (RHQ) in Saudi Arabia. Our services extend to business support services, including regulatory compliance, strategic advice, and ongoing assistance with business processes. With over a decade of industry experience, Massar promises a successful transition for companies seeking to benefit from the advantages of starting an RHQ in Saudi Arabia.