Establish Your Company in Saudi Arabia
From Anywhere in the World
Features of Starting a Business in Saudi Arabia
- Zero Income Tax: Enjoy the unique benefit of zero personal income tax, allowing you to retain your personal earnings and reinvest them for greater financial growth.
- Saudi Vision 2030: Your business will align with a transformative modern vision that goes beyond traditional sectors, promoting economic diversification and sustainable growth.
- Non-Oil Industry Contributions: Benefit from a diverse economy where non-oil industries significantly contribute, providing a stable and resilient foundation for your business ventures.
- Business-Friendly Environment: Navigate a robust business environment with supportive policies for growth, including the recently enacted Companies Law that addresses various business needs.
- Support for SMEs: Take advantage of the extensive support from the Small and Medium Enterprises General Authority (Monsha’at), offering incubators, accelerators, and lending programs.
- Strategic Location: Leverage Saudi Arabia’s strategic location, providing access to European, Asian, and African markets, facilitating global trade transactions.
- High Standard of Living: Enjoy a safe and reliable work environment, with Saudi Arabia recognized as one of the world’s safest countries, offering residents a high standard of living.
- Strong Purchasing Power: The Saudi market boasts strong purchasing power, enhancing commercial success opportunities and yielding high financial returns.
- Emerging Tourism Sector: Experience rapid growth in the tourism sector, focusing on diversification and the development of tourist attractions, significantly enhancing investment opportunities.
- Automation and Digital Transformation: Saudi Arabia is committed to enhancing digital infrastructure and promoting digital transformation, significantly supporting and enhancing business operations.
- Support for Local Industries: The government is currently providing substantial support for local industries, aiming to boost investment opportunities across various industrial, commercial, and professional sectors.
- Sports Sector and Mega Projects: Hosting the World Cup and massive investments in sports are positively impacting business opportunities and increasing global interest in the Kingdom.
- Booming Construction Sector: Infrastructure projects are experiencing massive growth, with real estate investments in this sector increasing daily, positively reflecting on the Kingdom’s economy.
- Cultural Diversity: The current cultural diversity in Saudi Arabia enhances international interaction and opens broad horizons for business and cultural exchange.
- Currency Stability: The Saudi Riyal has remained stable for several years, unlike many currencies worldwide, providing a reliable and secure financial environment for investors.
- Strength and Ease of the Banking Sector: The Saudi banking sector has long been characterized by strength and stability, now offering facilities for investors and business owners in financial services.
- Political Stability: The political stability in Saudi Arabia is one of the key factors enhancing entrepreneurs’ confidence and attracting foreign investments.
- Global Capital Migration: The Saudi economy is witnessing an influx of global capital, reflecting confidence in the investment environment.
Types of Companies in Saudi Arabia
It is very important to choose the right business structure for your project such as a limited liability company (LLC) or a joint stock company. Each structure comes with distinct advantages tailored to meet the needs of your business. The following are the most common types of companies in Saudi Arabia:
Limited Liability Company (LLC)
- Benefit from a joint venture business structure with limited liability for shareholders, limiting risk to the amount invested in the company.
- Fast registration time and the ability to enter into joint ventures with local companies quickly enhance business flexibility.
100% foreign ownership of the company is allowed, providing a favorable environment for international investors.
Foreign company branch
- Establish a branch of your existing company located anywhere in the world within the Kingdom of Saudi Arabia, to operate as a subsidiary of the parent company.
Provides foreign entities with a registered office in another country with a gateway to the huge Saudi market. - The parent company is responsible for legal obligations, ensuring an easy international expansion process.
A company owned by Gulf citizens
- A unique business entity exclusively for GCC nationals to promote regional mutual cooperation.
Provides the same benefits as Saudi-owned companies, with a simplified company formation process for GCC nationals.
In line with the Kingdom’s commitment to regional economic partnerships.
Joint stock company
- It is a company owned by investors who can buy or sell shares, providing a flexible funding stream for companies.
- It allows for a diversified ownership structure, providing opportunities for shareholders to invest and own a percentage of the company.
- It enhances financial stability through the collective support of shareholders.
Simple joint stock company
- Created under the new Companies Law, to meet the growing demand for startups.
- Provides flexibility with simpler requirements compared to traditional joint stock companies.
Allows an individual to establish a joint stock company, removing restrictions on the number of board members and shares.
joint liability company
- Known as a general partnership, it is a direct entity of two or more individuals who are equally liable for obligations.
- A structure that is streamlined with shared responsibilities among all partners.
- Suitable for cooperative ventures with shared decision making.
The most important questions about establishing a company in Saudi Arabia
Can a foreigner start a business in Saudi Arabia with 100% ownership? Yes, foreigners can establish a business in Saudi Arabia with 100% ownership. The Saudi Ministry of Investment (MISA) issues business licenses to foreign investors.
How long does it take to complete the licensing process? The time varies, but it can take up to 30 days or longer, depending on various factors such as the type of business, required documents, and processing.
What types of companies are available to foreigners?
There are different types of companies such as a limited liability company, a joint stock company, and more, each with its own advantages and registration requirements.
What is the tax rate for foreign-owned companies in Saudi Arabia?
Foreign-owned companies are subject to an annual corporate tax of 20% on their net profits, with withholding tax rates ranging from 5% to 20%.
How quickly can I get a commercial registration?
A commercial registration is usually issued within 7 to 15 business days after submitting the application, and serves as a certificate of incorporation and local business license.
Are there free zones in Saudi Arabia for companies? Yes, there are 4 economic cities, 5 special economic zones and 36 industrial cities in Saudi Arabia, all of which offer very flexible business regulations and incentives for foreign investors.
How much does it cost to set up a business in Saudi Arabia?
Costs vary based on business activities, shareholders, office space requirements and other factors. Contact us for detailed information and options.
