A regional headquarters is its own category in the Ministry of Investment's guide, with obligations that start the day the licence is issued. Most of the cost is people, not fees.
Last checked
A regional headquarters must start its mandatory activities within six months, start
three optional activities within a year, and employ 15 full-time employees within a year, including
3 executives at Executive Director or Vice-President level.
A regional headquarters must not directly conduct revenue-generating commercial operations other than its RHQ licence activities. Like every registration category, its fee is set on approval and
paid within 30 days.
Who the RHQ route is for
The guide describes the RHQ licence as the route for a foreign multinational that wants an entity in Saudi Arabia to
support, manage and give strategic direction to its branches and subsidiaries across the Middle East and North
Africa. The RHQ is set up as a separate legal person in the Kingdom, either as a company or as a registered branch of
a foreign company.
It is not a trading licence. The RHQ must not directly carry on revenue-generating commercial operations beyond its
RHQ activities. A group that also wants to sell in Saudi Arabia needs a separate operating entity for that, with its
own registration and, for trading, its own capital rules.
What you file
The application needs two certified registrations and audited accounts. Two registrations from two different group entities is a
different ask from the ordinary route, which is built around the applying company's own registration and accounts.
Registration approved, fee notified — To pay for the registration period
30 days
Mandatory RHQ activities start — From the licence
Within six months
Optional activities start — Chosen when applying
three optional activities within a year
Full-time headcount reached — Within a year, including 3 executives
15 full-time employees
The deadlines that run from the licence
Mandatory activities: started within six months of the licence.
Optional activities:three optional activities within a year, chosen when you apply.
Headcount:15 full-time employees working on RHQ activities within a year of registration.
Seniority:3 executives among the staff on mandatory activities, at Executive Director or Vice-President level.
The guide also expects the staff carrying out mandatory activities to have skills and knowledge developed at the
group's headquarters or another of its regional headquarters. That is easiest to show for people who have already
worked inside the group, which is worth weighing before recruiting the whole team locally.
Where the money goes
The government fees are the small part. Setting up the Saudi entity as an LLC carries the same published Ministry of
Commerce fees as any other company, SAR 2,155 with an Arabic trade name. The MISA registration fee is set
on approval.
The large, published part is staff. If all 15 required employees were foreign and none were matched by Saudi
staff, the labour ministry's work licence fee and financial equivalent alone would come to SAR 138,000 a year on the
ministry's printed figures, before salaries, residence permits, medical insurance or social insurance. Every Saudi
employee on the team moves part of that bill to the lower levy tier. The
staff cost guide explains the arithmetic, and the
Saudization guide the payroll rules behind it.
What stays the same as any registration
The fee is set by the ministry on approval, with the annual update on the same terms.
Registered establishments return the ministry's questionnaire within 14 working days of being notified.
The commercial registration, annual confirmation and staff processes are the same as for any company. See the annual cost guide.
Questions to settle before applying
Which two group entities will supply certified registrations, and how long will certification take in their countries?
Which optional activities will you choose, and can they start within the year?
Who are the 3 senior executives, and are they moving from inside the group?
Does any part of the plan involve earning revenue in the Kingdom, and if so, through which separate entity?
RHQ against an ordinary registration
Differences between an RHQ registration and an ordinary investment registration
Point
Ordinary registration
Regional headquarters
Documents
embassy-certified registration and financial statements
two certified registrations and audited accounts
Revenue
Trades in its registered activity
No revenue-generating trade outside RHQ activities
Staffing condition
None in the registration category
15 full-time employees, including 3 executives
Activity deadlines
None in the registration category
Mandatory within six months; three optional activities within a year
Fee
set by the ministry on approval
set by the ministry on approval
Frequently asked questions
How many employees does an RHQ need?
15 full-time employees within a year of registration, including 3 executives at Executive
Director or Vice-President level.
Can an RHQ sell products or services in Saudi Arabia?
Not as an RHQ. The guide is explicit: A regional headquarters must not directly conduct revenue-generating commercial operations other than its RHQ licence activities.
How much is the RHQ licence fee?
The guide gives no amount. As with every category, the fee is set on approval and paid within
30 days.
Every figure on this page is taken from the issuing body’s own page, with the date that page was opened. How the figures are checked