A Hong Kong or mainland Chinese company sets up in Saudi Arabia like any foreign investor: registration with the Ministry of Investment (MISA), then a commercial registration (CR). What changes is the parent company file. Hong Kong and mainland China both apply the apostille, Saudi Arabia has a tax treaty with each, and an offshore holding in the Cayman Islands or the BVI adds a layer of documents.
Yes, in most activities. The revised Investment Law, in force since February 2025, requires every foreign investor to register with MISA before investing. The company is then incorporated on the Saudi Business Center and the Ministry of Commerce issues the CR. The registration itself is explained on our MISA licence page.
A Hong Kong or Chinese passport, or a Hong Kong or Chinese parent company, brings no special treatment and no extra restriction. The conditions depend on the activity. There is no general legal minimum capital for a services LLC, but SAR 100,000 to 500,000 is expected in practice.
Allow 4 to 8 weeks to the CR, documents included. That is a provider estimate, not an official deadline. Rules that apply to every foreigner are on our requirements for foreigners page.
The first question we ask a Chinese group is which entity will hold the Saudi shares. The answer decides the documents, the apostille route and the tax treaty.
Table 1
| Shareholder of the Saudi company | Documents for MISA | Apostille issued by | Tax treaty with Saudi Arabia |
|---|---|---|---|
| Hong Kong company | Certificate of incorporation or registration extract, last fiscal year's financial statements | High Court registry, Hong Kong | Yes, in force since 1 September 2018 |
| Mainland Chinese company | Business licence, last fiscal year's financial statements | Ministry of Foreign Affairs or an authorised provincial Foreign Affairs Office | Yes, in force since 1 October 2006 |
| Cayman or BVI holding owned by Chinese investors | Holding's registration and financial statements, plus the parent's registration if its nationality differs | Competent authority of the territory (UK extension of the Convention, 1965) | No treaty: domestic withholding rates |
| Individual investor, no company | Case by case: entrepreneur track with a support letter, or premium residency | Depends on the document | Not relevant at company level |
Saudi Arabia accepts apostilled documents from Hong Kong and mainland China, so there is no embassy step. Private documents such as resolutions and powers of attorney are usually notarised before the apostille. The full list is in our document checklist.
The activity, not the nationality, sets the conditions. Four cases come up most often with groups from Hong Kong and mainland China.
Services
Usually a services LLC registered with MISA, with no legal minimum capital. Check whether the profession needs a licence or Saudi engineering accreditation, and plan your Saudization quota. See Saudization.
Projects
Public works are subject to the Contractor Classification Law: a public body may not award a classified project to an unclassified contractor. Since 2024, public bodies have also restricted contracts with foreign groups whose regional headquarters is outside the Kingdom. See contractor classification.
Commerce
100% foreign trading requires SAR 30 million of capital and a presence in at least 3 regional or global markets, plus investment and Saudi training commitments over 5 years. With a Saudi partner holding at least 25%, the minimum is SAR 26,666,667.
Industry
A factory needs an industrial licence from the Ministry of Industry and Mineral Resources. Since December 2025, establishments under an industrial licence are exempt from the expat levy. See our industrial licence page.
The first two steps happen in Hong Kong, mainland China or the offshore jurisdiction. The Saudi side is detailed on our formation steps page.
Hong Kong company, mainland company or holding? Subsidiary or branch of a foreign company? We also check that the activity is open to foreign investment and what capital it requires.
Registration extract, articles, financial statements, resolution and power of attorney, apostilled in each jurisdiction concerned.
Apostilled documents are translated into Arabic by a licensed office in Saudi Arabia, including the Chinese and English versions.
Online filing. MISA sets its fees case by case on approval, and they must be paid within the notified period or the registration is void.
Trade name, articles and CR on the Saudi Business Center: SAR 1,200 for an LLC and SAR 500 for publication, plus 15% VAT.
Bank account, ZATCA (Zakat, Tax and Customs Authority), GOSI, then the general manager's work visa and iqama. See opening a business bank account.
The China treaty was signed on 23 January 2006 and entered into force on 1 October 2006. The Hong Kong treaty was signed on 24 August 2017 and entered into force on 1 September 2018. ZATCA publishes both texts. A Cayman or BVI holding cannot rely on either, because Saudi Arabia has no treaty with those territories.
Saudi domestic withholding on payments to non-residents is 5% on dividends, 5% on interest and 15% on royalties. Under the China treaty, royalties are capped at 10%. Under the Hong Kong treaty, interest is not taxed and royalties are capped at 5% for equipment rental and 8% otherwise. Treaty relief is claimed online with ZATCA using form Q7B.
The Saudi company's profit is taxed at 20% on the share held by non-Saudi shareholders. Whether a Hong Kong company owned by mainland shareholders qualifies as beneficial owner under a treaty is a question for a tax adviser; Tasis is not one.
VAT is 15%. Registration becomes mandatory once taxable supplies exceed SAR 375,000 over the last 12 months, or are expected to over the next 12. An EPC or trading company that signs its first contract quickly often crosses that test at the start. See our VAT in Saudi Arabia guide.
For early trips, the business visit visa is open to all nationalities on the official visa platform, with stays of up to 90 days. It covers meetings and site visits, not work. See our business visa page.
Once the CR is issued, the company sponsors its general manager: a work visa applied for from abroad, then an iqama on arrival. MISA's guide sets no minimum investment for this iqama. Details are on our investor iqama page.
A multinational group that runs its Middle East and North Africa business from Saudi Arabia can apply for a regional headquarters (RHQ) licence. MISA asks for two registrations of different group entities and the latest audited accounts. The RHQ must employ 15 full-time staff within a year, including at least 3 senior executives.
A licensed RHQ pays 0% corporate income tax on eligible income and 0% withholding tax for a renewable 30-year period, according to ZATCA's guideline (May 2026). A subsidiary set up by a mid-sized group does not need one. See our regional headquarters page.
Yes. A Hong Kong company can own 100% of a Saudi company in most activities after registering the investment with MISA. It then incorporates on the Saudi Business Center and obtains a commercial registration from the Ministry of Commerce.
Yes. Saudi Arabia has applied the Apostille Convention since 7 December 2022, Hong Kong since 25 April 1965 and mainland China since 7 November 2023. Apostilled documents still need an Arabic translation by a licensed office in the Kingdom.
Yes, the holding can register with MISA as a foreign shareholder. MISA's guide asks for its registration and financial statements, plus the registration of the parent company if its nationality differs. If the holding has no audited accounts, what MISA accepts is confirmed at filing.
Yes. It was signed on 23 January 2006 and has been in force since 1 October 2006. A separate treaty with Hong Kong, signed on 24 August 2017, has been in force since 1 September 2018.
With 100% foreign ownership, trading requires SAR 30 million of capital and a presence in at least 3 regional or global markets. With a Saudi partner holding at least 25%, the minimum is SAR 26,666,667. Services companies have no legal minimum.
Yes, for projects subject to classification. The Contractor Classification Law bars public bodies from awarding such projects to an unclassified contractor. Each tender also sets its own conditions, including the regional headquarters rule.
No. An RHQ is for multinational groups that manage their regional business from Saudi Arabia. It matters for groups that bid for public contracts above the exemption thresholds.
Information verified in October 2026. Amounts and timelines are observed ranges provided for information only. Government fees are set by Saudi authorities and may change: they are confirmed in writing in the quote before you commit to anything.
Tell us which entity will hold the Saudi shares and what you plan to do in the Kingdom. We scope your project and coordinate its delivery with licensed professionals in Riyadh, and send you the list of documents to apostille. First call free, written reply within one working day.