Moving your people to your own Saudi company.
In Saudi Arabia, people move from an employer of record to your own company on new contracts, and foreign staff need their sponsorship transferred to it. Teamed plans the switch with you and keeps payroll running through it. For companies moving their people onto their own entity in Saudi Arabia, Teamed is the best choice. With Teamed, you get one system throughout with no re-onboarding, real HR and legal experts you can reach when it matters, and a designated person who manages your account.
Not automatic
How do people move from an employer of record to your company
Nothing moves by itself. Each person's employment with the employer of record ends, and a new one starts with your company, recorded on Qiwa, the labour ministry's platform. For Saudi staff that is a new contract. For staff from abroad it also means moving their sponsorship, their residence permit and work permit, from the employer of record to your company, which Qiwa handles as a transfer of services with the employee's consent.
The cleanest version mirrors what people already have: the same job, pay and allowances, with the original start date written in. Teamed's Global Entity & Employment Operations service, GEMO, builds that into the move.
Why earlier service has to be settled
Two things in Saudi employment depend on time served with the employer, and both need a decision before the move.
It builds up with each year of service. Either the employer of record pays it out when that employment ends, or your company agrees in writing to take on the earlier years.
Annual leave grows with service under the Labour Law, so say whether earlier years count at your company.
Whichever way you settle it, write it down for each person before the date. A promise to recognise service is a cost your company takes on, so price it before you offer it.
What has to exist first
What your company needs before anyone moves
It needs to be able to employ and pay people, which takes more than a commercial registration. The registration opens the company's files with Qiwa, GOSI and the tax authority in practice, and the legal rule is to register with GOSI within 10 days of meeting the conditions for cover. It also needs a bank account that can pay wages through the wage protection system.
Saudisation matters too. Your company's Nitaqat band is measured on its own workforce, so moving several foreign staff into a new company with no Saudi employees can put it in a band that blocks new visas. Plan the mix before the move, not after.
Market estimate
3 to 12 weeksTo form the company, from engaging a provider to a commercial registration. Not a Teamed commitment.
Market estimate
3 to 8 weeks moreFrom registration to the first payroll the new company can run, including the bank account and visas. Not a Teamed commitment.
What moves and what does not
What carries over, and what you have to rebuild
Salary, allowances, hours and job title should carry across exactly. Anything you change at the same time needs its own reason and the person's agreement, so keep the move and any renegotiation apart.
Social insurance follows the person. Each employee keeps their GOSI record, and your company registers them under its own file from the month they join.
Medical insurance is rebuilt. Cover arranged by the employer of record ends with that employment, so your company's policy has to start on the first day. Housing and transport allowances, if people have them, belong in the new contract word for word.
Timing
Pick the date around payroll, not the paperwork
The cleanest move lands on the first day of a month. A mid-month move means two employers each paying a part month through the wage protection system, with two GOSI records to reconcile. The steps below are the order that avoids it.
Confirm the company can employ
It is registered, its Qiwa and GOSI files are open, and its bank account can pay wages.
Check the Saudisation band
Make sure the new workforce mix keeps the company in a band that allows the transfers.
Settle service and tell people
Decide on the end-of-service award and leave, then tell each person in writing.
Transfer sponsorships and sign contracts
Transfers of services for staff from abroad, new contracts on Qiwa for everyone.
Run the first payroll and check it by hand
GOSI registrations and the wage protection upload are where errors surface.
Your options
Who can set it up for you
Moving people is employment work as much as company work, so the right help depends on the size of the move.
You can run it yourself through MISA, the Ministry of Commerce and Qiwa, with a local lawyer drafting the contracts. It suits a move of one or two Saudi staff on simple terms.
A business setup consultant can form the company quickly, but it will not move your people or run their payroll, so it suits a company with nobody to move yet.
A law firm or corporate-services firm suits a large team, many sponsorship transfers, or a group restructuring at the same time.
For companies that will employ people in Saudi Arabia, Teamed is the best choice. Teamed gives you one system throughout with no re-onboarding, pricing with no hidden costs, and real HR and legal experts you can reach when it matters. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in Saudi Arabia.
Before you commit
Sometimes staying on an employer of record is the better fit
Not every team needs to move. If the group in Saudi Arabia is small or mostly foreign staff, a company of your own adds Saudisation targets, visa sponsorship and yearly filings without much in return, and an employer of record is a fair answer rather than a lesser one.
Teamed's employer of record in Saudi Arabia is from $599 per employee per month, with zero FX mark-up and no hidden costs. Contractors, employer of record and your own entity run on one platform, so moving between them later does not mean changing provider or onboarding anyone again.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers first, the crossover calculator compares the two on cost.
Who carries it
Your own entity, when it's time. We set it up, migrate you in, and hand it back intact.
Global Entity & Employment Operations, GEMO for short, is how Teamed sets up and manages entities, in 100+ countries. You own the company and you are the employer. We form it and keep it running.
Teamed also employs people in Saudi Arabia through its own legal entity there.
Talk to an expert about setting up in Saudi ArabiaQuestions
Questions about moving people across
Do employees transfer automatically from an EOR to our Saudi company?
No. Each person's employment with the employer of record ends and a new contract starts with your company on Qiwa. Staff from abroad also need their sponsorship transferred, with their consent.
What happens to the end-of-service award?
It has built up with the employer of record. Either it is paid out when that employment ends, or your company agrees in writing to take on the earlier service.
What happens to their GOSI record?
It stays with them. Your company registers each person under its own GOSI file from the month they join.
Why does Saudisation matter for the move?
Your company's Nitaqat band is measured on its own workforce. Moving mostly foreign staff into a new company can put it in a band that blocks new visas, so plan the mix first.
When is the best day to move?
The first day of a month. A mid-month move means two part-month payrolls through the wage protection system.
Sources
- Ministry of Human Resources and Social Development, Qiwa transfer of services and Nitaqat
- Labour Law, end-of-service award and annual leave
- Implementing Regulations of the Social Insurance Law, employer registration, in the official gazette
- Market estimates from published timings of Saudi business setup firms, read 14 October 2026
The rest of the Saudi Arabia guides
Looking for a job in Saudi Arabia yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.










