What an RHQ is and who it is for
A regional headquarters is a Saudi entity that provides strategic management and supervision for a multinational group's companies and branches in the region; it does not sell or produce itself. The licence is issued by MISA under the program to attract regional headquarters of global companies.
The program suits multinational groups with operations in several countries across the Middle East and North Africa that want to manage them from Riyadh. It matters most to companies working with Saudi government entities, because the government announced that it will contract only with companies that have a regional headquarters in the Kingdom, with specific exceptions.
If you are a smaller company that only wants to enter the Saudi market, an RHQ is usually not the right vehicle. An LLC registered with MISA, or a branch of a foreign company, is normally a better fit.
RHQ licence requirements
The main requirements relate to the group's size and footprint and to hiring commitments after licensing. According to the program's published terms, and subject to confirming current conditions before you apply:
- The parent group must have an existing presence in at least two countries other than Saudi Arabia and the group's home country.
- The RHQ must carry out the mandatory activities set by MISA, plus a number of optional activities.
- The RHQ must start operating within 6 months of the licence being issued.
- It must hire at least 15 full-time employees within the first year, including 3 senior executives.
- The RHQ must not carry out commercial activities such as direct selling or contracting; those go through the group's other entities.
- Parent company documents must be attested and translated, together with financial statements and a list of countries where the group operates.
Requirements and incentives are subject to updates by MISA and ZATCA. We review current conditions with you before starting.
Regional headquarters program incentives
The main incentives are a long-term tax exemption and relief on visas and Saudization. The table summarises the published incentives; each one has conditions you should confirm for your case:
| Incentive | What it means | Note |
|---|---|---|
| 0% corporate income tax | Income from the RHQ's qualifying activities is exempt from corporate income tax | 30 years, renewable while the entity remains an RHQ |
| 0% withholding tax | On dividends and payments linked to qualifying RHQ activities | Income from non-qualifying activities is taxed normally |
| Saudization relief | Exemption for a published period of 10 years | Confirm the current period |
| Visa facilitation | Employee visas without the usual quota limits, per the published terms | Subject to Qiwa and MOFA procedures |
| Dependants | Dependants can work through the Ajeer platform; higher residency age for children | Per the announced rules |
| Professional accreditation | Home-country professional accreditation accepted for some professions | Depends on the profession and regulator |
According to the program's published terms; confirm current conditions before deciding.
How to get an RHQ licence
Licensing runs in five main stages, from preparing the parent company's documents to registering employees. The usual steps:
Initial assessment
Review the group structure, the countries it operates in and the activities planned for the RHQ, and confirm eligibility.
Prepare documents
Attest the parent company documents, board resolution and powers of attorney in the home country and at the Saudi embassy, then translate them into Arabic.
Apply to MISA
Submit the RHQ licence application on the MISA platform with the hiring plan and activities.
Commercial registration and registrations
Obtain the CR, then register with the Chamber, Balady, national address, GOSI, Qiwa and ZATCA.
Office, bank and staff
Set up a physical office in Riyadh, open the bank account, and issue employee visas and iqamas.
Timeline and indicative cost
Setting up an RHQ usually takes 45 to 75 days from complete documents to CR and core registrations, and overseas document attestation is the most common cause of delay. Main government items, indicative:
| Item | Indicative cost |
|---|---|
| Foreign document attestation and translation | SAR 2,000 to 6,000 |
| MISA fee | Set by MISA; confirm the current fee with us |
| Commercial registration | SAR 1,380 to 2,300 incl. VAT |
| Articles or resolution notarisation | SAR 500 to 2,000 |
| Chamber of Commerce | SAR 2,000 to 3,000 per year |
| Balady licence | SAR 800 to 3,000 per year |
| Private office | SAR 30,000 to 60,000 per year |
| Work visa and iqama, first year | SAR 10,000 to 15,000 per person |
Staffing is the largest cost, because the program requires 15 employees within the first year. Use the estimator below for government fees.
RHQ compared with a branch and an LLC
An RHQ does not replace the entity that sells in the market; it sits beside it, so most groups need two entities: an RHQ for management and an LLC or branch for commercial activity. The table shows the practical differences between the three options:
| Item | Regional headquarters | Branch of a foreign company | LLC |
|---|---|---|---|
| Purpose | Manage and supervise the group's regional business | Carry out the parent company's activity in the Kingdom | Trade as a separate entity |
| Selling and contracting | Not allowed | Allowed under the licence | Allowed under the licence |
| Special tax incentive | 0% on qualifying activities under the program's terms | None | None |
| Typical time | 45 to 75 days | 30 to 50 days | About 30 to 45 days with foreign ownership |
| Hiring commitment | 15 employees within the first year | Based on activity and Nitaqat | Based on activity and Nitaqat |
If your group wants to manage the region from Riyadh and sell in the market, plan both entities together to save time on attestation.
Common mistakes before applying
The most common mistake is treating an RHQ like a branch that sells into the market, which goes against what it is for. Also watch for:
- Starting document attestation late; it is often the longest stage.
- Not planning ahead to hire 15 employees and 3 executives within the first year.
- Mixing qualifying and non-qualifying income, which affects the tax exemption.
- Leasing an office that does not fit the licence requirements or the planned headcount.
How Grow More helps
Grow More is an independent private firm in Riyadh, not a government body. We work through the official portals under a delegation or power of attorney and follow up attestation, licensing, CR and post-registration steps, with a status update at every step.
Government fees are charged at cost with receipts, and our fee is a fixed price agreed before we start. We never ask for passwords or OTPs, and we work in Arabic and English.
Government fees shown are indicative and change from time to time. Grow More is an independent private firm, not a government body; we confirm current fees in your quote before we start.