Establishing a Regional Headquarters (RHQ) in Saudi Arabia: Your Guide to the RHQ License

Setting up a Regional Headquarters (RHQ) in Saudi Arabia is a great opportunity for multinational companies to expand their operations in the Middle East and North Africa (MENA) region. The RHQ License provides a legal framework for companies to create a central hub in Saudi Arabia. This guide covers RHQ License benefits, requirements, and key factors.

What is an RHQ License?

The RHQ License is issued by the Kingdom of Saudi Arabia to multinational groups wishing to establish a Regional Headquarters in the country. This license allows companies to manage and provide strategic direction to their branches, subsidiaries, and affiliates in the MENA region. By establishing an RHQ, businesses can centralize their operations and make decisions more efficiently.

Benefits of an RHQ License in Saudi Arabia

Strategic Location
Saudi Arabia’s position makes it an ideal hub for businesses targeting the MENA region, offering easy access to key markets.
Economic Incentives
The Saudi government provides incentives to attract foreign investment, including tax benefits and streamlined processes.
Growing Economy
Saudi Arabia invests heavily in infrastructure and development as part of its Vision 2030 initiative, creating new business opportunities.

Required Documents for an RHQ License

To apply for an RHQ License, multinational groups need to provide:

1. Commercial Registration or License
  A copy of the commercial registration or license, attested by the Saudi Embassy in the respective country.
2. International Commercial Registrations
  Copies of at least two commercial registrations or licenses from two different countries, excluding Saudi Arabia and the headquarters’ country, attested by the Saudi Embassies in those countries.
3. Financial Statements
  Annual audited consolidated financial statements for the last financial year, attested by the Saudi Embassy.

Rules and Restrictions

To maintain the RHQ License, companies must follow these rules:

1. International Presence
  The group must operate in at least two countries, excluding Saudi Arabia and the headquarters’ country.
2. Legal Structure
  The RHQ must be a separate legal entity in Saudi Arabia, either as a company or a registered branch.
3. Limited Commercial Operations
  The RHQ cannot conduct revenue-generating operations outside its licensed activities.
4. Mandatory Activities
  The RHQ must start mandatory activities within six months of receiving the license.
5. Optional Activities
  At least three optional activities must start within a year of obtaining the license.
6. Qualified Staff
  RHQ employees must have skills and knowledge from the headquarters or another regional headquarters, with at least three senior executives.
7. Compliance and Maintenance
  The Ministry of Investment can cancel the RHQ License if activities or staffing requirements are not met, or if regulations are violated.

Why Choose Saudi Arabia for Your RHQ?

Saudi Arabia offers a supportive environment for multinational companies looking to expand in the region. With strong infrastructure, favorable economic policies, and a focus on attracting foreign investment, the Kingdom provides a solid foundation for business growth. The RHQ License is a valuable tool for companies aiming to capitalize on Saudi Arabia’s potential and become leaders in the MENA region.

Ready to set up your Regional Headquarters in Saudi Arabia? Contact us today to learn more about the RHQ License and how we can assist you in navigating the process. Let us help you take the next step toward expanding your business in the MENA region!