RHQ License Apply Process: Documentation, Timelines, and Post-Approval Obligations

For any global business aiming to work with the Saudi government or benefit from the Kingdom's massive economic growth, the RHQ license is no longer a choice; it is a necessity.

This guide breaks down exactly how to apply for the RHQ license, the documents you need, and the rules you must follow once you are approved.

The Strategic Value of an RHQ License

The Saudi government has introduced the RHQ scheme to keep the main decision-making centers of large multinational companies in the Middle East actually located in the Kingdom. By 2026, the value of such incentives for co-locating with an RHQ will be at its highest:

• 30-Year Tax Holiday: Benefit from 0% corporate income tax and 0% withholding tax for all your regional headquarters-related operations.

• Government Contracts: Your RHQ is a prerequisite for you to participate in bidding on government projects valued at more than 1 million SAR.

• Saudization Relief: This allows you to get a 10-year grace period, during which you won't be subject to local hiring quotas (Nitaqat), giving you more flexibility in your initial workforce.

• Unlimited Visas: Basically, there are no limitations on how many working visas you can request for your RHQ personnel.

Step 1: Check Your Eligibility

To save your time on filing a lot of forms, first try to find out whether your firm fits the profile of a Multinational Corporation. For the Ministry of Investment (MISA), a multinational corporation means a company that is running some sort of physical work (subsidiaries or branches) in two different countries at least, not including Saudi Arabia and the company's home country.

The RHQ is designed to be a management hub, not a sales office. You must be prepared to show that this office will lead and supervise your other offices in the MENA (Middle East and North Africa) region.

Step 2: Gather the Right Documents

Documentation is the most common place where applications get delayed. Every document from outside Saudi Arabia must be notarized and attested.

• Parent Company Records: A certified copy of your commercial registration or trading license from your home country.

• Audited Financials: You must provide the audited balance sheet for your global firm’s last fiscal year.

• Board Resolution: A formal document from your company’s board stating the intent to open an RHQ in Saudi Arabia.

• Organizational Map: A clear chart showing that the Saudi RHQ will be the mastermind center for your other regional branches.

Step 3: The Application and Timeline

The application is submitted through the MISA Miza portal. During this step, you will be asked to choose at least three optional management functions (like marketing, HR, or accounting) in addition to the mandatory strategic functions.

• Submission: You will pay an initial license fee (roughly 12,000 SAR for the first year).

• Review Time: In 2026, the typical timeline for MISA to review and approve an RHQ license is 3 to 4 weeks, provided your documents are perfect.

• Commercial Registration (CR): Once the license is issued, you must obtain your CR from the Ministry of Commerce. This officially creates your legal identity in the Kingdom.

Step 4: Post-Approval Obligations

The Kingdom is very strict about economic substance. You cannot simply have a letterbox office. You must prove you are actually working from Saudi Arabia.

The 15-Employee Rule

By the end of your first year, your RHQ must have at least 15 full-time employees. This is a non-negotiable rule. Out of these 15, at least 3 must be C-suite executives (like a CEO, CFO, or Regional Director).

Mandatory Functions

Within 6 months, you must start performing all mandatory strategic tasks, such as formulating regional strategy and reviewing financial performance for the region. Within 12 months, you must be active in at least three of the optional functions you selected during your application.

Physical Presence

You must have a physical office address registered through the National Address (Saudi Post) system. Coworking spaces are allowed, but virtual offices with no desks or staff are not permitted for an RHQ.

Strategic Considerations for 2026

As the program matures, the Saudi authorities are conducting more audits. To stay compliant, you must:

1. Hold Board Meetings in KSA: At least one resident director must live in the Kingdom, and key strategic decisions should be documented as having happened in your Saudi office.

2. Separate Your Books: If you have other commercial entities in Saudi Arabia (like a trading LLC), keep their accounting separate from the RHQ. RHQ's tax exemption is only for qualifying management income.

3. Activate WPS: Using the Wage Protection System (WPS) to pay employees is a must if you want to remain in the favor of the Ministry of Human Resources, as your staff should be paid through Saudi bank accounts.

Partner with TASC to Simplify Your RHQ Journey  

Setting up a regional headquarters means a lot for any worldwide company. The main rules are straightforward, however, the details involved in getting an RHQ license can be so complex as to be hardly digestible for the busy senior management.

TASC Corporate Services is your local partner helping you from the spot. Besides assisting with the paperwork, we also take care of the entire lifecycle of your company's establishment. Obtaining your MISA license, preparing your Articles of Association, organizing the moving of your senior leaders and their families, TASC will make your transition flawless. Through proficient hiring, we will get you the 15-employee requirement and also support you to fulfill the post-approval obligations so that you can concentrate on winning government contracts and developing your business in the largest economy of the Middle East.

Frequently Asked Questions

1. Can my RHQ earn money from sales?

No. An RHQ is a cost center. It should not engage in direct commercial sales. If you want to sell products, you should open a separate LLC or branch for those activities.

2. What happens if I don't hire 15 people in the first year?

You may face a fine of 100,000 SAR. If the authorities find the office is completely non-operational, the fine can jump to 400,000 SAR or result in license revocation.

3. Are the 15 employees required to be Saudi nationals?

Though the RHQ has a 10-year exemption period from the requirement to adhere to specific Saudization quotas, the rule on 15 employees is simply a matter of headcount. You may employ foreign workers; however, the Kingdom would like you to also include local people in your regional team.

4. Is it possible for me to relocate my RHQ from one city to Riyadh?

It is possible. The majority of RHQs are in Riyadh for proximity to the government, but you can also set up your RHQ in any other city in Saudi Arabia, e.g., Jeddah, Dammam, etc., and enjoy the same benefits.

5. Is a 30-year tax holiday absolutely coming?

Definitely, if you still carry out the "Economic Substance" regulations and function as a regional headquarters properly.