Expanding your business into Saudi Arabia offers tremendous opportunities—but navigating the local legal and administrative framework can be challenging without the right support. One of the most crucial elements in this process is selecting a reliable local sponsor.
At HATEN, we specialize in guiding foreign investors through the company setup process in Riyadh, including trusted local sponsorship solutions that ensure compliance, speed, and long-term success.
Understanding the Role of a Local Sponsor
A local sponsor in Saudi Arabia is typically a Saudi national or a 100% Saudi-owned entity that facilitates the legal registration and operation of a foreign-owned business.
While many industries now allow full foreign ownership through MISA (Ministry of Investment Saudi Arabia), some still require local partnership models—especially those outside the 100% ownership list or companies not eligible for certain licenses.
Local sponsors are more than just a formality—they are essential business allies who:
- Represent the company in official matters when required
- Help secure trade licenses, permits, and approvals
- Offer insights into local market practices and regulations
- Assist with labour and immigration procedures
- Act as a bridge to government departments and local networks
At HATEN, we ensure your sponsor relationship is strategic, transparent, and supportive—so your company can focus on growth instead of red tape.
Sponsorship Models in Saudi Arabia
The nature of your business will determine the type of sponsorship arrangement required. The common models include:
- Service Agent Model: Ideal for companies that do not conduct commercial activity but require a local representative for licensing and administration.
- Equity Partnership Model: Applicable when a Saudi partner owns a percentage of the business, often required in sectors not fully open to foreign ownership.
- Nominee Sponsorship Model: A sensitive model where the sponsor holds shares in name only, governed by legal agreements to protect the foreign investor.
HATEN helps you assess the best-fit sponsorship model for your business and ensures all legal agreements are structured with absolute clarity and compliance.
Why Choose HATEN as Your Local Sponsor?
At HATEN, we go far beyond providing sponsorship on paper. We become an integral part of your company’s foundation in Riyadh. Our comprehensive support includes:
- Regulatory Compliance: We ensure all legal requirements are met for your sector and structure.
- Custom Business Setup: From document preparation to license acquisition, we manage the full company formation process.
- End-to-End Consulting: You’ll receive dedicated guidance on commercial registration, labour quotas, visas, and more.
- Ongoing Support: Even after your business is operational, we continue to provide administrative and operational assistance.
When you choose HATEN, you’re not just getting a sponsor—you’re getting a reliable local partner invested in your long-term success.
Why Local Sponsorship Matters?
The Kingdom of Saudi Arabia has made significant strides in attracting foreign investment, yet working with a trusted local sponsor remains a critical step in many sectors. A capable sponsor can:
- Accelerate the registration process
- Help avoid legal pitfalls
- Provide cultural and business insights
- Create access to key networks and government officials
With Riyadh fast becoming a regional hub for commerce, having the right local support is more important than ever.
A Streamlined Path to Business in Riyadh
Riyadh Company Registration doesn’t have to be complicated. When you work with a proven local sponsor like HATEN, the process becomes smooth, predictable, and fully aligned with Saudi Arabia’s evolving regulations.
Whether you’re establishing a new entity or opening a branch office, we tailor our services to your needs and ensure full transparency at every step.
Our team handles everything from initial planning to operational launch—so you can focus on strategy, execution, and growth.
Let’s Build Your Saudi Presence—Together
HATEN is proud to support global businesses entering Saudi Arabia’s dynamic economy. With a deep understanding of local regulations, licensing processes, and government relations, we provide the tools, guidance, and sponsorship you need to thrive.
If you’re planning your Riyadh Company Registration, reach out to our experts today. Let us help you unlock the potential of the Saudi market—with confidence and clarity.
Contact us today to schedule a consultation with our company formation specialists.
