Regional headquarters (RHQ) licence in Saudi Arabia, and the year of deadlines that follows it.

A regional headquarters directs a multinational group’s branches and subsidiaries in the Middle East and North Africa from Saudi Arabia. It runs the group’s regional management and functions such as finance, HR or legal support for those entities.

A Saudi company or a registered branch of a foreign company, holding an RHQ registration from MISA.

No. It may not earn revenue outside its RHQ activities. Saudi sales go through a separate operating entity.

Core management and strategic direction functions defined by MISA, which must start within six months of the licence.

Regional functions chosen at application from MISA’s list, such as finance, HR, marketing support, legal and training. At least three must start within a year.

No. MISA excludes RHQ registrations from merging with other investment records.

Most groups choose Riyadh for proximity to government and clients. Premises must suit the staff and functions.

Rarely. The programme assumes a multinational group able to staff 15 full-time roles.

A multinational group with commercial records in at least two countries besides Saudi Arabia and its home country, and the activities and people the programme requires.

MISA asks for records in two other countries. Because the RHQ manages MENA entities, groups usually point to regional subsidiaries.

Yes. The programme is open to multinational groups of any nationality that meet MISA’s conditions.

No, though many groups have one or form one alongside.

MISA’s RHQ category sets presence, activity and staffing conditions rather than a capital figure in its guide. Capital still has to fund the RHQ’s budget.

Often yes, provided the ownership and management lines make sense to MISA and ZATCA.

For the tax incentives, ZATCA requires at least one director who is resident in the Kingdom, and board meetings where strategic decisions are taken must be held in Saudi Arabia. In practice the head is resident.

Then the RHQ breaches its licence conditions. The review tests the hiring plan before you apply.

0% income tax on eligible income from eligible RHQ activities for a renewable 30 years, under ZATCA’s RHQ tax rules. Income from other activities pays the normal 20%.

No, only eligible income from qualifying activities. Other income is taxed normally.

No. It pays 20% on the foreign share and zakat on any Saudi or GCC share.

ZATCA registration, annual returns and the annual economic substance report, plus a valid MISA licence and continued compliance with the RHQ conditions.

At 0% for dividends, payments to related persons and payments to unrelated persons for services the RHQ needs, as long as the payments relate to eligible activities.

Normal VAT rules apply. Charges to group entities count as supplies, and registration is mandatory once taxable supplies pass SAR 375,000 in 12 months.

From the date the RHQ licence is issued, and ZATCA’s rules describe the period as renewable.

Yes. After a 90-day correction notice and escalating fines, ZATCA can suspend them, in coordination with MISA, if a substance breach persists.

An RHQ licence takes as long as the group’s documents from several countries take to legalise. MISA’s own review is quick once the file is complete.

On the date the licence is issued: six months for mandatory activities, twelve for staff and optional activities.

At application. Pick only activities the RHQ will really carry out, because at least three must be running within a year.

Yes. MISA sets one fee for the whole registration period when it approves the licence, payable within 30 days of notification, or the registration is void.

Yes, after the MISA registration. See Commercial Registration.

An RHQ needs its own RHQ registration. We review your entities and recommend whether to restructure or add one.

Yes, or embassy legalisation, depending on each issuing country. See attestation and apostille.

At least 15 full-time staff on RHQ activities within a year of the licence.

At least three at executive director or vice-president level, with skills developed at the group headquarters or another regional HQ.

Yes, many do, on Saudi work visas and residency. See visas and Iqama.

Labour rules apply, and MISA describes facilitation for RHQs. We confirm current terms when planning hires. See GOSI and Qiwa.

Not for MISA’s licence condition, which asks for 15 full-time employees on RHQ activities. ZATCA’s substance test is separate and counts part-timers in proportion to their time.

Before the licence. Senior regional hires rarely close in under a few months.

Yes, once registered. See corporate bank accounts.

Yes, apart from limited exceptions. Since 1 January 2024 government entities do not contract with multinational groups lacking an RHQ in Saudi Arabia.

Yes. Contracts estimated at SAR 1 million or less are outside it, and a bid from a group without an RHQ can be accepted if it is the only technically compliant bid, or ranks among the best technically and is at least 25% cheaper than the next. The buyer requests the exemption on Etimad before the tender starts.

That depends on the tender and on whether one of the exceptions applies. We align the RHQ timeline with your bid pipeline.

No. It removes a barrier; contracts are still won on merit.

MISA’s temporary registration covers a foreign company delivering one government contract. Whether it helps depends on the RHQ rule’s exceptions.

Yes. Work back from the bid deadline: the licence itself is quick, but legalising documents from several countries can take weeks.

The tax and zakat return, the economic substance report to ZATCA, CR confirmation, MISA’s annual update, and GOSI and Qiwa records.

Through a MISA amendment, subject to the activities on its list.

Staff, tax and records are closed in order, then the MISA registration cancelled. The incentives end with the licence.

Yes. It files audited statements with its annual return, and its RHQ income has to be identifiable in them.

Only by restructuring and re-registering, so settle the form before applying.

Your team, or our PRO and compliance service, from a shared calendar.