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Foreign branch

Helpline Group is a renowned business consulting agency in Saudi Arabia that facilitates the establishment of foreign branch businesses. Throughout the process of establishing a foreign branch, we provide thorough support and advisory services, ensuring complete adherence to local laws and specifications.

What is a foreign branch in Saudi Arabia?

The foreign branch is an extension of the parent company, and it must comply with the laws, regulations, and requirements of Saudi Arabia while operating within the country. Unlike a subsidiary or joint venture, a foreign branch is not a distinct company incorporated under Saudi Arabian laws.

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What are the ownership and capital prerequisites that a foreign branch must meet to operate in Saudi Arabia?
  • The amount required for a subsidiary’s capital must be deposited by the corporation. 
  • The paid-up capital requirement must be satisfied and deposited with a local Saudi bank.
  • The parent corporation assumes full responsibility for the business ventures in which the Saudi branch engages.
The procedure for setting up a foreign branch in Saudi Arabia
  • Establishing a Saudi branch office necessitates an existing foreign parent company. The Saudi branch operates under 100% ownership of the foreign investor.
  • The initiation of forming a Saudi branch begins with engagement with the Ministry of Investment of Saudi Arabia (MISA). Following this, the Ministry of Commerce and Industry grants the commercial registration for the branch.
  • This process often proves swifter compared to establishing a Limited Liability Company (LLC) or Joint Stock Company (JSC) due to the absence of reserve requirements or the need for Articles of Association approval.
  • It is advisable to seek expert advice on tax implications and corporate structuring from our consultants to ensure that establishing a Saudi branch office aligns with your company’s group structure. Upon completion of the branch setup, the appointment of an auditor is mandatory.