If you want to do business with the Saudi state or any State owned business, then you must set up a Regional Headquarters in KSA if you are still eligible. By establishing a Regional Headquarters in KSA, you open the door to a world of opportunities. Saudi Arabia is fast becoming the strategic gateway to the Middle East.
Who Qualifies for an RHQ?
Having an RHQ in the Kingdom can be mandatory if you meet the criteria The eligibility criteria for RHQs include:
The foreign business must have a minimum presence through Subsidiaries or Branches in two different countries, excluding the Kingdom of Saudi Arabia and the country in which its Parent HQ is located.
The Multinational Group with a MENA RHQ is not exempt.
The RHQ is established as a separate legal personality in the Kingdom of Saudi Arabia either as a company or as a registered branch of a foreign company.
The RHQ shall not directly conduct commercial operations that generate revenue other than RHQ License activities.
The RHQ must commence the mandatory RHQ activities within six months of issuing the License.
The RHQ must commence at least three optional RHQ activities within one year of issuing the RHQ License.
The RHQ must have at least 3 employees of Executive Director level and Vice-President level.
The RHQ must employ at least 15 full time employees deployed in the conduct of RHQ activities within one year of issuing the RHQ License (including the senior level executives mentioned).
How do you get set up as an RHQ in Saudi?
To establish an RHQ, your business entity must be operating as a registered foreign company or branch in Saudi Arabia. You'll also need to demonstrate operating credibility by maintaining at least two other subsidiaries - not in KSA, not in your country of incorporation - you'll need a physical presence in the region . Your commercial operations must be handled by MISA-licensed affiliates.
Your RHQ license doesn't allow you to go ahead and simply start operating - an RHQ license is your authority to manage things like marketing and strategic planning within and beyondthe Kingdom . In short, setting up an RHQ is putting your own seal of approval on your intent to succeed in Saudi and the region. It shows your intent to establish a strategic base in KSA, and enables you to start the process of overseeing operations across the region.
FAQs - Regional Headquarters (RHQ) in Saudi Arabia
What is an RHQ?
An 'RHQ' is a licenced Headquarters overseeing business operations across the region. .
Do I need an RHQ?
Any multinational companies that wants to do business with the State or state owned businesses in the Kingdom of Saudi Arabia must incorporate their Regional Headquarters if they are eligible.
Can AEI Saudi help me set up my RHQ?
Yes, AEI Saudi provides advice on establishing an RHQ - getting incorporated, getting your licence, and fulfilling the RHQ criteria on an ongoing basis.
What does an RHQ cost?
The costs are similar to setting up a normal registered entity i.e. SAR 12,000 in year one for Government fees.
How long does an RHQ license last?
An RHQ license is valid for one to five years - we can advise you on this.
Find out more about setting up your RHQ