Introduction

If you are planning to expand your business and open a new branch for your company in Saudi Arabia, this guide explains all the steps and requirements necessary according to the regulations of the Ministry of Commerce. Opening a branch for an existing company is easier than establishing a new company, but it requires meeting certain conditions.

What is the concept of a “company branch”?

A branch is an additional location for the same legal entity of the parent company, with the same commercial name and activity. The only difference is that it has a different address and a separate sub-commercial registration number linked to the parent company’s registration.

Basic requirements for opening a branch

  • Parent Commercial Registration: The parent company’s commercial registration must be valid and active.
  • Business Purpose: The branch’s activity must be among the licensed activities in the original registration.
  • Articles of Incorporation: Submit a copy of the articles of incorporation and the commercial registration of the parent company.
  • Premises Proof: Lease contract or property deed for the new branch premises.
  • Municipal Licenses: Obtain a municipal license for the premises according to the activity.
  • Regulatory Authority Licenses: Some activities require additional approvals (Saudi Food and Drug Authority, Ministry of Health, etc.).

Steps to open a company branch electronically

  1. Access the “Meras” Platform: Log in to the Ministry of Commerce’s electronic “Meras” platform.
  2. Select New Branch Request: From the services menu, choose “Issue a sub-registration.”
  3. Enter Data: Enter the new premises details (address, area, activity).
  4. Upload Documents: Upload the lease contract and articles of incorporation electronically.
  5. Pay Fees: Sub-registration issuance fees start from 200 SAR depending on the activity.
  6. Receive Registration: After approval, the sub-commercial registration is issued immediately.

Difference between a Branch and an Independent Activity

A branch is not a separate legal entity; it is part of the parent company. This means the parent company is legally responsible for the branch’s obligations. If you want a separate entity, you need to establish a new company, not a branch. Also, the branch uses the same tax number as the parent company and does not require a separate VAT registration.

Important Tips

  • Ensure the new premises comply with Civil Defense and municipal requirements.
  • The municipal license is mandatory before operating the branch — do not start the activity without it.
  • The branch uses the same VAT number as the parent company.
  • If the activity requires a professional license (e.g., pharmacies and clinics), the branch must be licensed separately.
  • A sub-registration can be issued within minutes if the documents are complete and correct.

Frequently Asked Questions

Can a branch be opened in a city other than the parent company’s city?

Yes, you can open a branch in any city within Saudi Arabia regardless of the parent company’s location. There are no restrictions on choosing the branch city.

What is the cost of opening a company branch?

Sub-registration issuance fees via the Meras platform start from 200 Saudi Riyals, in addition to municipal license fees, which vary depending on the activity, area, and location.

Does the branch need a separate commercial registration?

Yes, a sub-commercial registration is issued for the branch with an independent number, but it is electronically linked to the parent company’s registration and is not a separate entity.

How long does the branch opening process take?

After submitting the request electronically via the Meras platform, processing usually takes 1 to 5 business days if the documents are complete. Some requests are issued immediately.

Can a branch be opened for a foreign company?

Yes, provided the foreign company is licensed to invest in Saudi Arabia through the Ministry of Investment (MISA) and has obtained the necessary licenses.

Can a branch license be canceled?

Yes, you can cancel the sub-commercial registration via the Meras platform at any time, provided all financial obligations are settled.

And labor.