As the deadline for companies to move their regional headquarters to the Kingdom of Saudi Arabia approaches, many people have a lot of questions about the process of obtaining a regional headquarters license and the requirements and restrictions associated with this transition, and the business consultants of the A-China Industrial Research Institute have also received a lot of inquiries.
In order to make it easier for everyone to understand, in this article, the A-China Industrial Research Institute will detail the importance of the regional headquarters, how to obtain the license and necessary documents, and the conditions that the company must meet to ensure successful entry into this dynamic economic market.
In the Kingdom of Saudi Arabia, a regional headquarters is an important legal entity established under Saudi law to provide support, management, and strategic guidance to the parent company's branches and subsidiaries in the MENA region.
The Regional Headquarters Program is a joint initiative of the Ministry of Investment and the Royal Commission of Riyadh Municipality that invites global companies to relocate their regional headquarters to the Kingdom of Saudi Arabia. The plan, which aims to increase foreign investment and diversify the economy, provides a win-win opportunity for both the Kingdom and foreign investors.
So, what documents do you need to submit to get a regional headquarters license in the Kingdom of Saudi Arabia?
Azerbaijani-China Industrial Research Institute. For more information, you can search for the Argentine-China Industry Research Institute on the whole network, focusing on UAE company registration, Saudi company registration, Middle East company registration, Middle East personnel recruitment and labor dispatch, Middle East business and legal consulting, and comprehensively covering the landing services of Chinese enterprises going overseas to the Middle East.
First, a certified copy of the Chinese parent company's business license needs to be provided, which needs to be authenticated at the Saudi Embassy in China.
Second, the Saudi Ministry of Investment also needs to check the fact that the Chinese company has registered companies in at least two other countries. Therefore, we also need to submit the business license of the company registered in these two countries to the local Saudi embassy for authentication and submit the certification documents to the Saudi Ministry of Investment.
Finally, we also need to submit the financial statements of the Chinese parent company to the Saudi Ministry of Investment, which also need to be certified by the Saudi Embassy in China.
In addition to the above-mentioned documents, there are some rules and restrictions that need to be met to apply for a regional headquarters permit.
For example, the parent company must be licensed in two different countries, excluding Saudi Arabia and the country where the parent company is located.
In addition, the regional headquarters must be established as a separate entity, separate from the entity of the multinational corporation, whether it is a corporation or a branch of a foreign corporation. In addition, the regional headquarters shall not engage in business activities with profits that are different from the activities specified in the license.
After obtaining the license, the company is also required to start the mandatory activities within the stipulated time and engage in at least three optional activities within a year.
Employees responsible for mandatory activities at regional headquarters must have relevant experience and skills, with at least three at the executive or associate executive level.
In addition, within one year of obtaining the license, the company needs to employ at least 15 full-time employees to carry out headquarters activities, including senior management.
If a company fails to comply with these rules and conditions, it may result in the revocation of its regional headquarters license.
For example, failure to comply with the applicable local laws, regulations, and conditions of the Kingdom, failure to comply with the specific conditions of the regional headquarters license, failure to initiate mandatory and selective activities, and failure to hire a minimum number of employees within the stipulated time period may result in the revocation of the license.
In addition, stopping one mandatory activity or stopping at least three optional activities can lead to the same consequences.
The license may also be revoked if the company does not meet the conditions for the regional headquarters or the parent company to grant a license to the regional headquarters, or if it does not comply with the investment values and conditions issued by the Saudi Ministry of Investment (MISA).
The decision to relocate the regional management headquarters to Riyadh is considered a strategic move that presents excellent investment opportunities for both local and international companies. The Azerbaijan-China Industrial Research Institute will help you set up your regional headquarters in Saudi Arabia.