Saudi Arabia is rapidly cementing its status as the undeniable business command center for the entire Middle East and North Africa (MENA) region. The Regional Headquarters (RHQ) Program is the government’s direct invitation for multinational corporations (MNCs) to set up their strategic management hub in the Kingdom, primarily in Riyadh.

The critical update: As of January 1, 2024, if an MNC is eligible for the RHQ program but has not established an RHQ in Saudi Arabia, it is no longer eligible to contract with Saudi government entities.

At Click.com.sa, we provide the streamlined, digitally-focused process you need to secure your RHQ license and comply with all mandatory requirements, ensuring uninterrupted access to the Saudi public sector market.

The incentives for establishing an RHQ are designed to be irresistible, creating a massive competitive edge for companies that move:

• 30-Year Tax Holiday (0% Tax):
  • Corporate Income Tax (CIT): A 0% CIT rate on income from “eligible RHQ activities.”
  • Withholding Tax (WHT): A 0% WHT on payments made by the RHQ to non-residents (including dividends, payments to related parties, and necessary service payments).
• 10-Year Saudization Exemption:
  • Your RHQ is exempt from national employment quotas (Saudization) for a full 10 years, giving you maximum flexibility to hire the best global talent.
• Executive & Employee Visas:
  • Unlimited Visas: Accelerated and unlimited issuance of work visas for RHQ employees.
  • Flexibility: Exemption from professional accreditation requirements (if accredited in the home country) and extended residency age for male dependents (up to 25 years).
• Government Tendering:
  • Mandatory Access: Eligibility to bid on lucrative contracts with Saudi government entities, a privilege restricted to RHQ holders.

The RHQ is designed for genuine multinational groups with a significant regional presence. To qualify, your company must meet these non-negotiable requirements:

• Multinational Status: Must be a foreign-registered MNC with a presence (subsidiaries or branches) in at least two countries outside of its home country and KSA.
• Non-Commercial Focus: The RHQ entity must not engage in commercial, revenue-generating activities. Its function is strictly strategic direction, support, and management.
• Minimum Staffing: Within one year of licensing, the RHQ must employ a minimum of 15 full-time employees in KSA.
• Executive Leadership: This staff must include at least three C-level executives (Executive Director/Vice President level) dedicated to RHQ activities.
• Mandatory Activities: You must commit to and perform the full list of mandatory strategic and management activities specified by the Ministry of Investment (MISA).

The process for an RHQ is multi-phased and requires specialized attention. Click manages this complexity for you through our digital process:

• Step 1: Eligibility & Application:
  • Action: We verify your MNC status and prepare a detailed application, including your business plan, audited financials, and required corporate documents.
• Step 2: MISA License Issuance:
  • Action: We submit the application to the Ministry of Investment (MISA) to secure the official RHQ License.
• Step 3: Legal Incorporation:
  • Action: The RHQ is then incorporated as a branch or LLC in KSA, and we secure the Commercial Registration (CR) from the Ministry of Commerce (MOCI).
• Step 4: Economic Substance & Staffing:
  • Action: We assist in meeting Economic Substance Requirements (ESR): securing adequate premises, registering employees with social security (GOSI), and registering with the tax authority (ZATCA).
• Step 5: Operational Launch:
  • Action: The RHQ must begin mandatory activities within six months and a minimum of three optional activities within one year to maintain full compliance and tax benefits.

Your Future is in Riyadh.

The Saudi RHQ program is a direct gateway to the region’s largest economy and its most significant government contracts. Click ensures your entry is swift, compliant, and positioned to maximize your 30-year tax advantage.