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Regional Headquarters Setup in Saudi Arabia
Unlock the Benefits of Establishing Your Regional Headquarters (RHQ) in Saudi Arabia. KSA is rapidly becoming the top choice for multinational companies to establish their regional headquarters (RHQ). Ready to take your business to the next level? Partner with Expand Way to establish your Regional Headquarters in Saudi Arabia.
Contact us today to get started!
An Overview of Regional Headquarters (RHQ) in Saudi Arabia
Saudi Arabia’s Regional Headquarters (RHQ) Program is a transformative initiative led by the Ministry of Investment (MISA) and the Royal Commission for Riyadh City (RCRC). The program invites foreign-registered companies to establish RHQs in the Kingdom to attract multinational corporations, provided they operate at least two subsidiaries abroad. By focusing on administrative and regional coordination functions, RHQs benefit from tax-efficient structuring, streamlined regulatory processes, and strategic support from the Saudi government. With a goal to establish 480 RHQs by 2030, this program aligns with Vision 2030, boosting Saudi Arabia’s economic growth and cementing its role as a pivotal business hub for the Middle East and beyond.
Eligibility Criteria for the Saudi RHQ Program
1. Foreign Company Registration
To qualify for the Saudi RHQ Program, your business must be legally registered outside of Saudi Arabia. Our team assists you in meeting all registration requirements, ensuring a seamless RHQ setup with local authorities.
2. International Subsidiary Requirement
Your company must operate at least two active subsidiaries or branches in different countries to qualify. This criterion is set to ensure that your RHQ in Saudi Arabia effectively manages and coordinates your regional activities.
3. Physical Operational Presence in Saudi Arabia
The RHQ must establish a physical presence in Saudi Arabia dedicated to regional administrative and managerial functions. Unlike a sales office, the RHQ focuses on overseeing regional operations and strategic planning, rather than direct commercial transactions.
Key Benefits of Establishing an Regional Headquarters in Saudi Arabia
- Growing RHQ Presence: Over 180 RHQs established in 2023, surpassing targets.
- 30-Year Tax Exemption: Enjoy 30 years free of corporate income and withholding tax.
- 10-Year Saudization Exemption: Hire flexibly with no Saudization requirement for 10 years.
- Aligned with Vision 2030: Long-term growth potential in a thriving economy.
- Financial Incentives: Reduced operational costs and increased profitability.
Establishing a Regional Headquarters (RHQ) in Saudi Arabia offers significant advantages for multinational companies seeking growth in the Middle East. Under the Saudi RHQ Program, companies enjoy a 30-year exemption from corporate income tax (CIT) and withholding tax (WHT), creating a cost-effective environment for long-term operations. Additionally, businesses setting up RHQs benefit from a 10-year exemption from Saudization requirements, allowing flexibility in workforce selection and easing the initial setup phase.
Saudi Arabia’s central geographic location provides strategic access to markets across Africa, Asia, and Europe, while its supportive government policies streamline business registration and compliance. The RHQ Program exceeded expectations in 2023, with over 180 regional headquarters established, highlighting the program’s effectiveness and appeal to global enterprises. Companies also benefit from 100% foreign ownership rights, a well-educated local workforce, and world-class infrastructure, making Saudi Arabia an ideal choice for regional operations. Aligned with Vision 2030, the RHQ Program not only supports company growth but also contributes to the Kingdom’s broader economic development goals, creating a sustainable business environment with high growth potential.
Taxation and Financial Benefits
Corporate Tax
Relief
RHQs can enjoy significant tax benefits, including corporate tax exemptions for specific activities. We assess your financial setup to maximize these incentives under the RHQ program.
Withholding Tax
Exemptions
Certain services and transactions may qualify for withholding tax exemptions, benefiting your bottom line. Expandway’s advisors identify these exemptions to optimize your tax benefits.
Economic Substance
Requirements
To maintain eligibility for tax benefits, your RHQ must meet economic substance requirements. We help you set up operations that satisfy these criteria to retain financial advantages.
Step-by-Step Guide to Establishing an RHQ in Saudi Arabia
1. Document Preparation for RHQ Licensing
Gather essential documents, including company registration, financial records, and board resolutions. We handle the documentation meticulously, ensuring each piece meets MISA’s requirements for a smooth submission.
2. Application Submission to MISA
Our team submits your RHQ license application to the Ministry of Investment (MISA), managing the entire process to streamline approvals and quickly address any questions or requirements.
3. Navigating Compliance and Securing Approvals
Compliance with Saudi regulations is crucial for a successful establishment. We guide you through local legal and operational standards, ensuring full regulatory adherence and securing necessary approvals.
4. Setting Up Your RHQ Office and Team
With approvals in place, we assist in establishing your physical office, recruiting personnel, and managing initial operations to ensure your RHQ is ready for effective regional oversight.
5. Ongoing Compliance and Operational Support
Beyond setup, we provide continued support to ensure your RHQ remains compliant, efficient, and primed for growth, so your business can focus on maximizing regional opportunities.
5 Simple Steps to Establishing RHQ in Saudi Arabi.a
Choose Expandway for Your Regional Headquarters Setup in Saudi Arabia
Establishing a Regional Headquarters (RHQ) in Saudi Arabia offers incredible growth opportunities, and Expandway is your trusted partner to make it happen smoothly. With our deep understanding of Saudi regulations and market dynamics, we handle every step of the setup process from licensing and compliance to office establishment and staffing. Choose Expandway expert guidance for your RHQ setup in Saudi Arabia.
Contact us today to get started!
Key Business Sectors for Establishing Regional Headquarters
Saudi Arabia’s dynamic Vision 2030 initiative opens up key sectors for foreign investment, creating ideal opportunities for establishing regional headquarters. Major sectors include construction, technology, tourism, manufacturing, and renewable energy. Each sector aligns with national goals, from advancing infrastructure and promoting digital innovation to expanding tourism, boosting industrial production, and fostering sustainable energy practices. These sectors provide unique entry points for international businesses, allowing them to capitalize on Saudi Arabia’s economic transformation and growth potential in a rapidly modernizing market. Setting up a regional headquarters in these sectors positions companies at the forefront of an evolving, business-friendly economy.
Education
Construction
Events organization
Repair of motor vehicles
Manufacturing
Transport and logistics
Financial activities
Human health
Real estate activities
Electricity & Gas supply
Travel and tourism
Wholesale and retail trade
insurance activities
Agriculture and Forestry
Social work
Mining and quarrying
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Top Locations for Establishing a Regional Headquarters (RHQ) in Saudi Arab
Saudi Arabia offers several strategic locations for establishing a Regional Headquarters (RHQ), each tailored to support specific industry needs. Riyadh, the capital, is ideal for sectors like technology, finance, and consulting, providing advanced infrastructure and direct access to government institutions. Jeddah, a major port city on the Red Sea, serves companies in trade, logistics, and tourism, thanks to its proximity to international trade routes.
In the Eastern Province, Dammam is a hub for oil, energy, and manufacturing industries, with easy access to natural resources and industrial zones. Meanwhile, NEOM, a futuristic high-tech city, attracts companies focused on innovation, sustainability, and advanced technologies. Expandway assists businesses in choosing the ideal location to optimize their RHQ setup and maximize potential across Saudi Arabia’s top commercial centers
Dammam: The Industrial Powerhouse of Saudi Arabia
Dammam, located in Saudi Arabia’s Eastern Province, is a prime choice for foreign investors targeting industrial and petrochemical sectors. With direct access to GCC markets and strategic transportation networks, Dammam is ideal for manufacturing, logistics, and oil and gas companies. The city’s advanced infrastructure and established industrial base support rapid business growth, providing an excellent foundation for foreign companies aiming at regional expansion and stability in the Middle East.
Riyadh: The Capital of Business and Innovation
Riyadh, Saudi Arabia’s financial hub, is an excellent location for foreign investors and companies aiming to establish a presence in the Kingdom. With its robust economy, government-supported initiatives, and thriving sectors like technology, finance, and healthcare, Riyadh provides exceptional opportunities for growth. Establishing your business here enables access to essential markets and positions your company for expansion across the region, leveraging Riyadh’s strategic importance and diverse business landscape.
Jeddah: The Gateway to Trade and Commerce
Jeddah, positioned along the Red Sea coast, serves as a strategic center for trade, logistics, and tourism in Saudi Arabia. Its access to major shipping routes and its commercial prominence make Jeddah ideal for businesses targeting regional markets. The city’s expanding economy, led by sectors like retail, construction, and transportation, creates robust opportunities for foreign companies looking to enter Saudi Arabia's vibrant market and benefit from Jeddah's dynamic growth potential.
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- FAQs
Frequently Asked Questions
If you don’t find your question answered here, don’t hesitate to contact us. We appreciate your inquiry.
What is the eligibility requirement for an RHQ in Saudi Arabia?
Your business should be a foreign-registered entity with multiple active subsidiaries to qualify for RHQ status.
How long does the RHQ setup process take?
While timelines vary, our streamlined approach helps you get your RHQ operational as quickly as possible.
What costs are associated with setting up an RHQ?
Costs vary based on the nature of your operations. Contact us for a custom estimate based on your business needs.
What are the ongoing obligations for an RHQ in Saudi Arabia?
Your RHQ must comply with regular reporting, audits, and license renewals to maintain its status.