Regional Headquarters License (RHQ) in Saudi Arabia
Saudi Arabia’s Regional Headquarters (RHQ) License is at the center of the Kingdom’s strategy to attract global companies and position Riyadh as the regional business hub. Backed by Vision 2030, the RHQ program allows multinational companies to establish a permanent management presence in Saudi Arabia while benefiting from long-term tax incentives and simplified regulatory support.
At Incorpyfy, we help international corporations understand and obtain the RHQ License in Saudi Arabia, ensuring compliance with all regulations under the Ministry of Investment (MISA) and ZATCA. From preparing your business case to activating your tax benefits, we make the process smooth, transparent, and aligned with your expansion goals.
Who Needs an RHQ License in Saudi Arabia?
The Saudi RHQ License is designed for multinational corporations that manage, support, or coordinate their regional operations from the Kingdom. It allows global companies to establish a headquarters that oversees their Middle East and North Africa business units under a regulated, tax-advantaged structure.
Eligible Companies & Permitted RHQ Activities
To qualify for an RHQ license, a company must have a presence in at least 2 countries outside Saudi Arabia. RHQs are permitted to engage in strategic, managerial, and administrative functions such as:
- Regional management, budgeting, and business planning
- Strategic coordination and policy development
- Marketing, HR, and finance support for regional entities
- Research and market analysis
- Training, development, and talent support
RHQ vs. Operating Entity
An RHQ is not an operating or revenue-generating company. Instead, it provides support and oversight services to the group’s subsidiaries. Any trading, invoicing, or client-facing activities must be conducted through a separately licensed operating entity in Saudi Arabia.
This distinction ensures compliance with MISA’s RHQ framework and helps maintain eligibility for tax incentives under ZATCA.
Regulator & Incentives (MISA + ZATCA)
Saudi Arabia’s RHQ program is jointly administered by the Ministry of Investment (MISA) and the Zakat, Tax and Customs Authority (ZATCA). Together, these authorities provide one of the most competitive corporate frameworks in the region, combining regulatory efficiency with unprecedented fiscal advantages.
30-Year Tax Relief (0% CIT & 0% WHT)
Companies holding an approved RHQ License enjoy a 30-year exemption from both Corporate Income Tax (CIT) and Withholding Tax (WHT) on qualifying activities and related payments.
This includes:
- 0% Corporate Income Tax on eligible RHQ income
- 0% Withholding Tax on dividends, service payments, or royalties to non-residents
- Full foreign ownership and profit repatriation flexibility
These incentives are conditional on maintaining the economic substance outlined by ZATCA and on ensuring that management and decision-making occur within Saudi Arabia.
Non-Tax Incentives
Beyond tax benefits, RHQ companies also enjoy:
- Streamlined visa facilitation for executives and family members
- Access to Premium Residency tracks for qualifying expatriates
- Eligibility to participate in government tenders and contracts under the government-contracts policy, effective 2024
- Support through the Invest Saudi one-stop platform for licensing, visas, and aftercare services
Together, these incentives make the RHQ program in KSA one of the most attractive relocation and expansion opportunities in the region.
Economic Substance & Compliance Requirements
The RHQ framework requires tangible management presence in Saudi Arabia. This ensures companies are not only registered locally but also operating meaningfully within the Kingdom.
Premises, Board in KSA, Resident Director, and Headcount
To maintain RHQ status, companies must:
- Maintain a dedicated office premises in Saudi Arabia (not virtual)
- Appoint a resident director or senior executive based in KSA
- Conduct board or management meetings within Saudi borders
- Employ a minimum headcount (commonly 15 FTEs, including at least 3 executives)
- Demonstrate that core management and decision-making occur in Saudi Arabia
Accounting Separation for Eligible vs Non-Eligible Activities
If the RHQ engages in both qualified and non-qualified activities, it must maintain separate accounting records to distinguish eligible income. Non-qualified activities are taxed under standard corporate rules. ZATCA may review this separation to confirm continued tax exemption.
Benefits Of Regional Headquarters License In Saudi Arabia
Regulated by the Ministry of Investment (MISA) and supported by the Zakat, Tax and Customs Authority (ZATCA), Saudi Arabia’s Regional Headquarters (RHQ) License is a gateway to the Middle East’s fast-growing markets. At Incorpyfy, we help multinational companies unlock these opportunities by guiding them through the Saudi RHQ Program — from application to incentive activation.
Here’s why setting up your RHQ in Saudi Arabia is worth it:
Strategic Regional Advantage: Located at the crossroads of Asia, Africa, and Europe, Saudi Arabia offers unmatched access to regional and international markets. Establishing your RHQ here allows you to manage, coordinate, and expand operations across the Middle East from a single, central hub.
Business-Friendly Environment: The Kingdom’s continuous investment in infrastructure, transport, and smart-city projects has created a thriving, investor-friendly ecosystem. With MISA’s streamlined procedures, it’s easier than ever to set up and operate your RHQ efficiently.
Access to Emerging Markets: From Riyadh, you can oversee subsidiaries and business units across the GCC, Africa, and Asia. This centralization improves decision-making, operational control, and overall business agility.
Competitive Cost Structure: Saudi Arabia offers competitive labor, real estate, and utility costs. Combined with efficient logistics and advanced infrastructure, this helps reduce overhead and increase profitability across regional operations.
Exceptional Tax Incentives: Approved RHQ entities enjoy 0% Corporate Income Tax (CIT) and 0% Withholding Tax (WHT) for up to 30 years on eligible activities — one of the most generous incentive packages globally. These benefits are activated upon registration with ZATCA and compliance with substance requirements.
Simplified Administration: The RHQ framework streamlines visa processes, import/export procedures, and residency permits. Executives and their families benefit from visa flexibility, while companies enjoy faster onboarding of foreign talent.
Enhanced Market Credibility: Establishing your RHQ license in KSA demonstrates a long-term commitment to the region. It boosts brand reputation, builds trust with Saudi authorities, and strengthens partnerships with local and international stakeholders.
At Incorpyfy, we make the entire process seamless — from preparing your RHQ application to securing approvals with MISA and ZATCA. Our experts handle documentation, compliance, and renewal so you can focus on strategic growth.
Regional Headquarters Licensing Requirements In Saudi Arabia
Securing a Regional Headquarters (RHQ) License in Saudi Arabia (KSA) is a key milestone for multinational companies expanding across the Middle East. Regulated by the Ministry of Investment (MISA) and supported by the Zakat, Tax and Customs Authority (ZATCA), the RHQ Program allows global corporations to establish a regional base while accessing unmatched business incentives.
To qualify, companies must maintain real economic substance within Saudi Arabia — including a physical office, resident director, and dedicated staff. Approved RHQs benefit from up to 30 years of 0% Corporate Income Tax (CIT) and 0% Withholding Tax (WHT) on eligible activities under ZATCA’s incentive rules.
At Incorpyfy, we streamline the entire process — from preparing your MISA RHQ application to coordinating approvals and compliance filings — ensuring every requirement is met smoothly.
Key Requirements
| Requirement | Details |
|---|---|
| Business Plan & Project Proposal | A comprehensive document outlining objectives, operations, and regional strategy for your RHQ. |
| Proof of Financial Capability | Evidence of sufficient capital to sustain operations and staffing. |
| Investor Documentation | Passport copies and personal details of shareholders or key stakeholders. |
| RHQ License Application | Completed MISA forms with supporting attachments. |
| Corporate Documentation | Parent-company registration certificates, audited financials, and attested legal documents. |
Rules & Restrictions
| Regulation | Details |
|---|---|
| Minimum Capital Requirements | Flexible; based on scale and function of the RHQ but must prove financial strength. |
| Saudization & Local Content | Compliance with HRSD and GOSI registration; prioritizing Saudi employment. |
| Economic Substance | Maintain a Saudi office, resident executive, board presence, and minimum staffing. |
| Restricted Activities | RHQs cannot trade or invoice clients; they provide coordination, management, and strategic support only. |
Process of Obtaining an RHQ License
| Step | Details |
|---|---|
| 1. Application Submission | Submit your MISA RHQ license application with a full business case and supporting documents. |
| 2. Document Review & Approval | MISA reviews the submission for compliance with RHQ regulations and substance standards. |
| 3. License Issuance | Once approved, the RHQ license is issued, allowing registration of the commercial entity with the Ministry of Commerce (MOC). |
| 4. Entity Establishment | Secure office premises (Ejar-registered), appoint a resident director, and complete ZATCA, GOSI, and HRSD registrations. |
Most applications are processed within 4–6 weeks, and RHQs can begin operating once both MISA and ZATCA approvals are complete. Typical government licensing fees range from SAR 10,000 – 20,000, excluding translations and notarizations.
At Incorpyfy, we handle every detail — from document attestation to government coordination — ensuring your RHQ license in Saudi Arabia is approved efficiently and without delays.
Timeline, Fees & Incentive Activation
Typical Processing Windows
The complete RHQ licensing process typically takes 4 to 6 weeks, depending on the time required for document attestation and review by MISA and ZATCA.
Incentive Activation Timing & Renewal
Tax benefits begin once the RHQ is registered with ZATCA and economic substance requirements are verified. Failure to maintain local presence or headcount may lead to the suspension of incentives or delays in license renewal.
Typical one-time costs include MISA licensing fees (SAR 10,000–20,000), translation charges, and office lease expenses. Annual renewal fees apply for both MISA and municipal permits.
Common Pitfalls & How We Help
Frequent Rejection Reasons
- Insufficient economic substance or staffing
- Activities outside the permitted RHQ scope
- Missing resident director or board presence in KSA
- Incomplete Arabic translations or attestations
How Incorpyfy Ensures RHQ Compliance & Incentive Continuity
At Incorpyfy, we don’t just handle applications — we build a complete compliance framework. Our consultants coordinate with MISA, ZATCA, and MOC to ensure every requirement is met accurately and on time.
We assist with business case drafting, document attestation, Saudization setup, and ongoing renewal support to keep your RHQ license in Saudi Arabia fully active and eligible for incentives for decades to come.
Get Your RHQ License in Saudi Arabia with Incorpyfy
Regulated by the Ministry of Investment (MISA) and the Zakat, Tax and Customs Authority (ZATCA), the Regional Headquarters (RHQ) License in Saudi Arabia allows global corporations to manage their regional operations under one roof while enjoying long-term incentives and simplified compliance.
At Incorpyfy, we know that navigating the RHQ licensing process can feel complex — and that’s exactly where we come in. Our expert consultants handle every stage, from preparing your MISA application to ensuring your business meets all ZATCA, HRSD, and GOSI requirements.
Through the Saudi RHQ program, qualified companies can benefit from up to 30 years of 0% Corporate Income Tax (CIT) and 0% Withholding Tax (WHT) on eligible activities. With these incentives, Saudi Arabia has become the go-to regional headquarters destination for multinationals looking to expand in the Middle East.
Whether you’re setting up your first RHQ license in KSA or expanding your group presence, we manage the entire process — documentation, attestation, compliance, and government coordination — so you can stay focused on strategic growth. Our goal is simple: make your RHQ setup smooth, compliant, and future-ready.
With Incorpyfy, you gain more than a service provider — you gain a partner who understands every detail of the Saudi licensing ecosystem. Let’s take your business global from Riyadh.
Schedule your consultation today and start your Regional Headquarters License application in Saudi Arabia with a trusted expert by your side.
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