Regional Headquarters License in Saudi Arabia - Al Taasis

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Regional Headquarters License (RHQ)
in Saudi Arabia

A Regional Headquarter is currently defined as a unit of a multinational company established under the laws of Saudi Arabia. The RHQ license allows foreign companies to operate their regional headquarter in the Kingdom of Saudi Arabia and conduct a range of activities such as managing, supervising, and providing strategic direction to its branches, affiliates and subsidiaries in the MENA region.

Transport Sector
in Saudi Arabia at a Glance

Benefits of Regional Headquarters License in Saudi Arabia

There are several benefits of having a Regional Headquarters (RHQ) in Saudi Arabia, including:

Access to Saudi Market

Saudi Arabia is the largest economy in the Middle East and North Africa (MENA) region, with a population of over 35 million people.

Strategic Location

Saudi Arabia is a gateway to the Gulf Cooperation Council (GCC) countries and other MENA markets, making it an ideal location for companies looking to expand.

Favourable Business Environment

Saudi Arabia has been implementing economic and legal reforms to create a more favourable business environment, including the Vision 2030 plan to diversify the economy and increase foreign investment.

Tax Exemptions

Companies operating as an RHQ in Saudi Arabia may be eligible for certain tax exemptions and benefits, such as exemptions from customs duties and value-added tax (VAT) on imported goods.

Access to Government Contract

The Saudi government is the region's largest spender on infrastructure projects and offers various opportunities for companies to participate in these projects.

Special Economic Zone

The Saudi government has established several special economic zones that offer additional benefits and incentives for companies operating as an RHQ in the country.

Free Trade Agreements

Saudi Arabia has signed free trade agreements with countries like the United States, Canada, China, Singapore, and Turkey, providing

Infrastructure Development

The Saudi government is investing heavily in infrastructure development, including constructing new airports, ports, and railways, which can provide opportunities for companies in the engineering and construction sectors.

Regional Headquarters Licensing Requirements in Saudi Arabia

License to practice bus public transportation within cities
View Requirements

License to Practice Bus Public Transportation within Cities

This license permits international companies to operate public bus transportation services in cities within the Kingdom of Saudi Arabia.

Required Documents

  1. The Company’s Board of Directors’ resolution indicating their plan to invest in the Kingdom of Saudi Arabia, listing the names of shareholders, capital amount, shareholders’ shares, business activity, location, and the appointment of General Manager and his powers, authenticated by the Saudi Embassy.
  2. A copy of the business entity’s commercial registry from its country of origin, with authentication from the Saudi Embassy.
  3. Evidence demonstrating adherence to contract completion timelines in the previous five years.
  4. Documentation showing financial capability aligned with the project’s capital requirements, shareholder contribution, consistency with the project’s implementation plan, and in accordance with the financial restrictions established for the type of activity.

Rules and Restrictions

  1. Alignment of the Saudi shareholder(s) percentage and capital with the financial restrictions outlined for the type of activity.
  2. The foreign company’s average revenue over the past three years prior to the license grant must be at least 3 billion Saudi riyals, with a minimum asset value of 1.5 billion Saudi riyals.
  3. The foreign company must hold licenses in at least two countries and have a minimum of 10,000 employees.
  4. The minimum capital requirement for bus procurement, operation, and maintenance must meet the Ministry of Investment’s standards for service sector companies (500,000 SAR).
  5. In the case of a Saudi shareholder, a copy of the Department of Transportation/Public Transportation Authority license for bus transportation activities is required.
  6. Compliance with the nationalization quotas set by the Ministry of Labor and Social Development for transportation services, as amended.
  7. The establishment’s record requesting the license must not include any previous license revocations, either inside or outside of Saudi Arabia, within the ten years prior to the license request.
  8. There should be no record of fines or penalties related to traffic safety, either inside or outside of Saudi Arabia, in the ten years prior to the license request.
  9. Approval from the relevant authorities in Saudi Arabia for the use of public transportation during emergencies, crises, and wars.
  10. Technical specifications and production processes must adhere to Saudi, Gulf, or international standards.
  11. The applicant must submit annual plans for improving security levels to the Public Transport Ministry for review.
  12. The applicant must provide data of the Saudi national identity, premium residency, residency, or commercial registration data for any participating Saudi companies when submitting the electronic application.
Contact us to obtain your Transport License fast.
Regional Headquarters Licensing
View Requirements

Regional Headquarters Licensing Requirements in Saudi Arabia

Required Documents

  1. You will provide a copy of the commercial registration or a commercial license, attested at the level of the Saudi Embassy in the respective country.
  2. You will provide copies of at least two commercial registrations or licenses issued in two different countries, excluding the Kingdom of Saudi Arabia and the country where the headquarters of the Multinational Group is located, attested at the level of the Saudi Embassy in the respective countries.
  3. You will provide the annual audited consolidated financial statements of the last financial year of the applicant, attested at the level of the Saudi Embassy in the respective country.

Rules and Restrictions

  1. A multinational group is considered to have a presence in at least two countries other than the country where its headquarters is located and the Kingdom of Saudi Arabia, either through subsidiaries or branches.
  2. A Regional Headquarters (RHQ) in the Kingdom of Saudi Arabia is set up as a distinct legal entity, either as a standalone company or as a registered branch of a foreign company.
  3. The Regional Headquarters (RHQ) license holder shall only engage in activities that are directly related to the operation of the RHQ and shall not engage in other commercial activities that generate revenue.
  4. The RHQ must begin its mandatory activities within six months of receiving the license.
  5. Within a year of obtaining the RHQ License, the RHQ must initiate at least three optional RHQ activities.
  6. RHQ employees carrying on mandatory RHQ License activities must have the relevant skills and knowledge developed at the headquarters or another regional headquarters of the Multinational Group; at least three employees must be Executive Director and Vice President.
  7. Within one year of obtaining the RHQ License, the RHQ must have a minimum of 15 full-time employees engaged in carrying out RHQ activities (including the senior level executives specified in point 6)
  8. The RHQ License is subject to cancellation by the Ministry of Investment in any of the following situations:
    • Inability to commence mandatory or optional RHQ License activities or hire the required minimum number of employees within the designated timeframes.
    • Discontinuation of any mandatory RHQ activities or a minimum of three optional RHQ activities.
    • Failure to comply with any RHQ License conditions by the RHQ or the Multinational Group.
    • Violating any licensing regulations established by MISA is classified as "Grounds for Cancellation".

Process of Getting RHQ License in Saudi Arabia

It is important to note that obtaining an RHQ license in Saudi Arabia can take several months. The requirements and procedures may vary depending on the type of business and the company's particular circumstances.

Get Your RHQ License in Saudi Arabia with Al Taasis

Our team deeply understands the regulations and procedures required for obtaining a Regional Headquarters license in Saudi Arabia and can help ensure that your application is processed smoothly and efficiently. We can help you establish and manage your regional headquarters in Saudi Arabia.

Contact us to obtain your Regional Headquarters License fast.
License to practice other transport
View Requirements

License to Practice Bus Public Transportation within Cities

This license permits international companies to operate public bus transportation services in cities within the Kingdom of Saudi Arabia.

Required Documents

  1. The Company’s Board of Directors’ resolution indicating their plan to invest in the Kingdom of Saudi Arabia, listing the names of shareholders, capital amount, shareholders’ shares, business activity, location, and the appointment of General Manager and his powers, authenticated by the Saudi Embassy.
  2. A copy of the business entity’s commercial registry from its country of origin, with authentication from the Saudi Embassy.
  3. Evidence demonstrating adherence to contract completion timelines in the previous five years.
  4. Documentation showing financial capability aligned with the project’s capital requirements, shareholder contribution, consistency with the project’s implementation plan, and in accordance with the financial restrictions established for the type of activity.

Rules and Restrictions

  1. Alignment of the Saudi shareholder(s) percentage and capital with the financial restrictions outlined for the type of activity.
  2. The foreign company’s average revenue over the past three years prior to the license grant must be at least 3 billion Saudi riyals, with a minimum asset value of 1.5 billion Saudi riyals.
  3. The foreign company must hold licenses in at least two countries and have a minimum of 10,000 employees.
  4. The minimum capital requirement for bus procurement, operation, and maintenance must meet the Ministry of Investment’s standards for service sector companies (500,000 SAR).
  5. In the case of a Saudi shareholder, a copy of the Department of Transportation/Public Transportation Authority license for bus transportation activities is required.
  6. Compliance with the nationalization quotas set by the Ministry of Labor and Social Development for transportation services, as amended.
  7. The establishment’s record requesting the license must not include any previous license revocations, either inside or outside of Saudi Arabia, within the ten years prior to the license request.
  8. There should be no record of fines or penalties related to traffic safety, either inside or outside of Saudi Arabia, in the ten years prior to the license request.
  9. Approval from the relevant authorities in Saudi Arabia for the use of public transportation during emergencies, crises, and wars.
  10. Technical specifications and production processes must adhere to Saudi, Gulf, or international standards.
  11. The applicant must submit annual plans for improving security levels to the Public Transport Ministry for review.
  12. The applicant must provide data of the Saudi national identity, premium residency, residency, or commercial registration data for any participating Saudi companies when submitting the electronic application.
Contact us to obtain your Transport License fast.
Contact us to obtain your Regional Headquarters License fast.