Overview
The Regional Headquarters (RHQ) license is a special status granted by the Ministry of Investment of Saudi Arabia (MISA) that authorizes a multinational group to base the entity that directs, manages, and oversees its operations across the Middle East and North Africa from inside the Kingdom. To qualify, the group must be a genuine multinational — present in at least two countries besides Saudi Arabia and the country of its global headquarters. The RHQ must perform the program's mandatory activities (strategic direction and management functions such as setting the regional strategy, regional business planning, budgeting, and operational and financial reporting) within six months, plus at least three optional activities it selects within the first year (for example sales and marketing support, treasury, HR, legal, R&D, or sourcing). The RHQ itself is the brain that steers the group's regional subsidiaries and branches rather than a trading or production entity.
What makes the RHQ status strategically decisive is the package attached to it. MISA, in coordination with the Zakat, Tax and Customs Authority (ZATCA), grants a 30-year tax incentive from the date the license is issued: 0% corporate income tax on eligible RHQ income and 0% withholding tax on qualifying payments to non-residents. Equally important, since 1 January 2024 government agencies and entities are generally barred from contracting with multinationals — and their related parties — that do not hold a Saudi RHQ, so the license is now the gateway to public-sector revenue in the Kingdom. The RHQ also enjoys a 10-year exemption from Saudization quotas for its staff, generous work-visa allocations with no Saudization cap, and premium services for executives and their families. The group's existing trading subsidiaries continue to operate under their own commercial registrations; the RHQ sits above them as the regional command center.
Activities covered
Formulating, monitoring, and coordinating the group's regional strategy and aligning regional units to it (a mandatory strategic-direction function).
Regional business planning, budgeting, business coordination, and operational and financial reporting for the group's subsidiaries (mandatory management functions).
Treasury, foreign-exchange, and regional cash-management services centralized at the headquarters (a selectable optional activity).
Regional sales and marketing support, market and competitor monitoring, and identifying new market opportunities for group products and services.
Shared corporate services such as human resources, legal, compliance and internal control, accounting, and procurement/sourcing for regional units.
Research and development, IP-rights management, and training services run on behalf of the group's regional branches and affiliates.
Who is it for?
Multinational groups that already sell to — or want to win contracts from — Saudi government and public-sector entities and must satisfy the post-2024 RHQ procurement rule.
Global corporations consolidating their MENA leadership, treasury, and shared-services functions into one regional hub to capture the 30-year tax incentive.
Boards and regional CEOs seeking a stable, incentivized base in Riyadh from which to direct subsidiaries across the Gulf, Levant, and North Africa.
How we issue it for you
Eligibility and structure review
We confirm your group meets the multinational test, map which mandatory and optional activities to list, and advise whether the RHQ should be a new entity or a conversion of an existing presence.
Document preparation and attestation
We assemble and translate the parent-group documents, board resolution, and financials, and manage attestation and legalization so the file is accepted by MISA without rejections.
MISA RHQ application and license
We file the RHQ application with the Ministry of Investment (MISA), respond to queries on your behalf, and obtain the Regional Headquarters license.
Incorporation and registrations
We complete commercial registration with the Ministry of Commerce, the national address, Chamber of Commerce membership, and Zakat, Tax and Customs Authority registration to activate the 30-year incentive.
Operational setup and compliance
We set up GOSI and payroll, secure work visas and Iqamas for executives, lease compliant offices, and put in place the substance needed to meet the six-month and 15-employee thresholds.
Requirements
Proof the group is multinational: it operates in at least two countries other than Saudi Arabia and the country of its global headquarters, evidenced by commercial registrations or incorporation certificates of those entities.
Group corporate documents — certificate of incorporation, articles of association, and a board resolution authorizing the RHQ — duly attested and legalized for use in the Kingdom.
Audited financial statements of the parent group and a defined scope of mandatory and at least three optional RHQ activities to be listed on the license.
A commitment to operational substance: commence mandatory activities within six months and reach at least 15 full-time employees in the first year, including three senior executives (such as CEO, CFO, or a regional director).
Cost & timeline
Costs combine government charges (MISA RHQ licensing and registration, commercial registration, and visa/Iqama fees) with the substance commitments the program requires — notably staffing toward 15 employees and senior executives within the first year. Government fees are paid at cost and are best confirmed by a consultant for your specific case, as they change periodically. A typical RHQ license and incorporation runs over a few weeks once attested documents are in hand, but reaching full operational substance is a 6–12 month program. We provide a fixed, itemized quote before we begin so there are no surprises.
Frequently asked questions
In most cases, yes. Since 1 January 2024, government agencies are generally prohibited from contracting with multinationals — and their related parties — that do not hold a Saudi RHQ. Narrow exceptions exist (for example, a single technically acceptable bidder, or an emergency), but you should not rely on them. If public-sector revenue matters to you, the RHQ license is effectively the entry ticket, and we help you secure it.
MISA grants a 30-year incentive from the license date: 0% corporate income tax on eligible RHQ income and 0% withholding tax on qualifying payments to non-residents, administered with the Zakat, Tax and Customs Authority. The relief applies to the RHQ's qualifying activities, not to your separate trading subsidiaries, and is conditional on meeting the program's economic-substance requirements. We structure the entity so eligible income is properly ring-fenced and the incentive holds up.
The RHQ must commence its mandatory activities within six months of licensing and reach at least 15 full-time employees within the first year, including three senior executives such as the CEO, CFO, or a regional director performing strategic management for the region. The good news is the RHQ enjoys a 10-year exemption from Saudization quotas and generous work-visa allocations, so you can staff it with the regional leadership team you need. We handle the visas, Iqamas, and payroll setup.
The RHQ is a distinct status focused on directing and managing the region, not on direct trading or production. In practice the RHQ is usually a dedicated entity that sits above your trading subsidiaries, which keep their own commercial registrations and continue operating. We review your current structure and advise whether to establish a new RHQ entity or convert an existing presence, then implement whichever path is cleaner for tax and compliance.