Foreign Company Branch Registration Saudi Arabia
Complete foreign branch setup in Saudi Arabia β MISA branch licence, commercial registration, ZATCA compliance, and ongoing annual reporting.
Many foreign companies entering Saudi Arabia prefer to establish a branch rather than a subsidiary β particularly for government contract work, where many tenders require a branch (not a subsidiary) to be established in Saudi Arabia. A Saudi branch is not a separate legal entity but an extension of the foreign parent, meaning the parent bears unlimited liability for the branch's obligations.
Intelli Solutions manages the complete foreign branch registration process β from MISA branch licence application and Ministry of Commerce CR issuance through to ZATCA registrations, GOSI enrolment, and the annual MISA financial reporting that is mandatory for all registered foreign branches.
Branch vs Subsidiary β Key Differences
Foreign Branch
- Extension of parent β no separate legal entity
- Parent has unlimited liability for branch obligations
- Required for many government contract activities
- Simpler profit repatriation (no dividend withholding)
- Branch income taxed as CIT (20%) in Saudi Arabia
- Annual MISA reporting obligation
Subsidiary (LLC)
- Separate Saudi legal entity β limited liability
- Parent liability limited to share capital
- More flexibility for future Saudi IPO or JV
- Dividends subject to 5% WHT on repatriation
- Saudi shareholder portion pays Zakat
- Greater governance separation from parent
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Foreign Company Branch Registration Saudi Arabia
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Establishing a Saudi Branch of Your Foreign Company?
Complete branch registration and ongoing compliance management. Free initial consultation.