Commercial register, residence, and transfer of sponsorship:
Understanding Your Commercial Register
After establishing your company's structure, it's crucial to understand how Saudi Arabia's Commercial Register (CR) works:
What the Commercial Register Shows
Lists registered managers
Shows company activities
Displays authorized signatories
Does NOT show:
Specific manager privileges
Ownership details
Internal company structure
Important Note
Always carry both your Commercial Register AND company contract when dealing with government entities
The contract specifies your exact role and authorities
Scanning the CR only reveals basic company information
Residency Requirements for Business Operations
Critical Rule
You cannot effectively control your Saudi company without:
Valid residency (Iqama)
Active Nafaz (digital signature)
Proper visa status
Without these, you legally:
Can't make decisions for your company
Can't register a Saudi phone number
Have no operational control, even with a business visit visa
Solutions Based on Your Location
If You're Outside Saudi Arabia
You must obtain a proper investor visa
Process requires:
Medical examination
Fingerprinting
Professional accreditation
Enter KSA to activate residency
If You're Already in KSA (Working for Another Company)
Good news: Saudi labor law protects your right to own a business while employed
Key facts:
Your current sponsor won't be notified about your new company
They can't legally punish you for business ownership
The only way they'd know is if you tell them or someone reports you
Transferring Sponsorship to Your Own Company
When ready to leave your current job:
Option 1: Gradual Transition
Complete your current contract
Then transfer residency to your company
Benefits:
No rush
Maintain income during transition
Option 2: Immediate Transfer
Pay residency transfer fees:
1st transfer: 2,000 SAR
2nd transfer: 4,000 SAR
3rd transfer: 6,000 SAR (increasing pattern)
Gain full control of your exit/re-entry permissions
Critical Benefit of Self-Sponsorship
Freedom to travel without employer approval
No more situations where:
You can't visit sick parents
You're stuck waiting for travel permission
Your movements are restricted
Important Considerations
Residency Duration continues from your previous sponsorship
Financial Planning needed for increasing transfer fees
Legal Protection exists against sponsor retaliation for business ownership
Next Steps: If you're currently outside KSA, see our separate guide on obtaining your investor visa and first-time residency process.
