How to Set Up a Travel and Tourism Company in Saudi Arabia 2025
Introduction: Why Set Up a Travel and Tourism Company in Saudi Arabia? The Kingdom of Saudi Arabia is experiencing a remarkable transformation, especially in the travel and tourism sector. With the government’s Vision 2030 plan aiming to diversify the economy and reduce dependency on oil, now is the perfect time to set up a travel and tourism company in Saudi Arabia. The demand for tourism services—ranging from cultural tours and pilgrimage packages to luxury travel and adventure tourism—is growing rapidly. Entrepreneurs and investors around the world are recognizing the potential of this booming market. Whether you’re a local businessperson or a foreign investor, setting up a travel and tourism company in Saudi Arabia offers immense opportunities for growth and long-term success. Understanding the Tourism Landscape in Saudi Arabia Before you set up a travel and tourism company in Saudi Arabia, it’s crucial to understand the dynamic tourism environment. Saudi Arabia is home to key attractions like the historic cities of Makkah and Madinah, the UNESCO World Heritage site of AlUla, and the stunning Red Sea coastline. The country is actively developing entertainment hubs, eco-tourism zones, and high-end resorts. As part of its Vision 2030 strategy, the government has introduced tourism-friendly policies, relaxed visa regulations, and is investing billions into infrastructure. This makes it highly favorable to set up a travel and tourism company in Saudi Arabia for both domestic and international tourism. Legal Structure to Set Up a Travel and Tourism Company in Saudi Arabia Visit Us Choosing the right legal structure is a critical step when you set up a travel and tourism company in Saudi Arabia. The most popular options include: Limited Liability Company (LLC) Foreign Branch Office Sole Proprietorship (for Saudi nationals) Joint Ventures For foreign investors, an LLC with a commercial registration under the Ministry of Commerce and Investment (MoCI) and a license from the Ministry of Tourism is typically the best route to set up a travel and tourism company in Saudi Arabia. MISA (Ministry of Investment of Saudi Arabia) plays a vital role in guiding foreign investment across sectors. Key Licenses Required to Set Up a Travel and Tourism Company in Saudi Arabia To set up a travel and tourism company in Saudi Arabia, you must obtain specific licenses and approvals: MISA License (for foreign-owned businesses) Commercial Registration (CR) from the Ministry of Commerce Tourism License from the Ministry of Tourism Municipal License (for physical office setup) Chamber of Commerce Membership ZATCA Registration for VAT compliance Each license is essential to legally operate and set up a travel and tourism company in Saudi Arabia without regulatory issues. You may also need specialized permits depending on your services (such as Umrah packages, adventure tourism, or hotel booking services). Documents Required to Set Up a Travel and Tourism Company in Saudi Arabia REQUEST A CONSULTATION The documentation process is a vital part of establishing your presence. When you set up a travel and tourism company in Saudi Arabia, be prepared to submit: Passport copies of shareholders Business plan and feasibility study Articles of Association (AoA) Lease agreement for office space Power of Attorney (if using a consultant) Bank reference letters Proof of capital deposit (depending on structure) National address registration Having these documents prepared will significantly streamline the process to set up a travel and tourism company in Saudi Arabia. Office Setup and Local Presence Requirements A mandatory step in the journey to set up a travel and tourism company in Saudi Arabia is securing a physical office space. The Municipality requires proof of commercial office premises. Additionally, you’ll need a local address for mail correspondence, government inspections, and regulatory compliance. This physical presence reassures authorities and clients alike that your travel and tourism company in Saudi Arabia is legitimate and operational. Employment and Iqama Process for Your Travel and Tourism Company When you set up a travel and tourism company in Saudi Arabia, hiring qualified staff is critical. You’ll need to: Register with the General Organization for Social Insurance (GOSI) Register with Mudad for wage protection Process Iqamas (residency permits) for foreign employees Assign a Saudization ratio (employ a percentage of Saudi nationals) Staffing requirements and Iqama quotas vary based on your business activity. It is advisable to work with a local PRO service to manage this efficiently. Marketing and Branding Your Travel and Tourism Company Learn More Once you set up a travel and tourism company in Saudi Arabia, your next focus should be brand visibility and client engagement. Use the following strategies: Launch a mobile-responsive website Build social media presence (Instagram, Twitter, TikTok) Register your company on Google Business Attend tourism expos and trade shows Partner with hotels and airlines Offer online booking and payment solutions An effective marketing strategy ensures your travel and tourism company in Saudi Arabia gains traction locally and internationally. Business Bank Account and Financial Setup After you set up a travel and tourism company in Saudi Arabia, you’ll need to open a corporate bank account. This is essential for receiving client payments, processing payroll, and maintaining transparency. To open a bank account, submit your company documents, CR, AoA, and authorized signatory details. Additionally, you’ll need to register with ZATCA for VAT if your annual revenue exceeds the threshold. Proper financial setup is a crucial aspect of running a successful travel and tourism company in Saudi Arabia. Estimated Timeline and Costs The timeline to set up a travel and tourism company in Saudi Arabia can range from 3 to 8 weeks, depending on documentation, approvals, and business model. The cost to set up a travel and tourism company in Saudi Arabia will depend on your activities, license category, office location, and foreign ownership. Rather than fixed pricing, professional consultants evaluate your requirements and provide custom quotations. Why Choose ThinkDirect BPO? Click here If you’re ready to set up a travel and tourism company in Saudi Arabia, ThinkDirect BPO is your trusted partner for end-to-end support. From business registration and licensing to PRO services and