Through subsidiaries or branches, global entities must have operational bases in at least two regions beside their main headquarters and Saudi Arabia.
A Regional Headquarters (RHQ) in Saudi Arabia operates as a distinct legal entity, either as an independent company or as a branch of an international firm.
The Regional Headquarters (RHQ) license holder should solely focus on activities pertinent to the RHQ’s operation and refrain from undertaking revenue-generating commercial activities outside this scope.
The core operations of an RHQ must commence within six months of receiving the license.
Subsequent to the procurement of the RHQ License, it is essential that within a year, the RHQ initiates a minimum of three discretionary RHQ-related activities.
Personnel engaged in essential RHQ License tasks must possess expertise and knowledge fostered either at the main headquarters or at another regional hub of Multinational Group. Furthermore, a minimum of three of these employees should hold the distinguised positions of Executive Director and Vice President.
Within the first year post-acqusition of the RHQ License, the RHQ must have a minimum of 15 full-time employees engaged in carrying out RHQ activities (including the senior level executives specified in point 6)
The Ministry of Investment reserves the right to revoke the RHQ License under the following conditions:
- The failure to commence essential or discretionary RHQ License activities, or the inability to employ the stipulated minimum personnel within the outlined periods.
- The cessation of any core RHQ functions or the discontinuation of at least three discretionary activities.
- Non-adherance to any conditions of the RHQ License by either the RHQ or the Multinational Group.
- Breaches in the licensing regulations set by MISA are classified as “Grounds for Cancellation”.