Saudi Arabia Company Registration

Saudi Arabia stands as the largest economy in the Middle East and an increasingly attractive destination for global investors. Fueled by Vision 2030, the Kingdom continues to diversify beyond oil into sectors like technology, healthcare, and renewable energy. Foreign entrepreneurs can typically incorporate as a Limited Liability Company (LLC), subject to approval from the Ministry of Investment of Saudi Arabia (MISA, formerly SAGIA). While local sponsorship requirements have eased, companies must still meet industry-specific regulations and maintain a registered presence in the country.

Types of Companies

1. Limited Liability Company (LLC):
   
   • Most common structure for foreign investors
   • Limited liability for shareholders
   • Requires MISA approval for 100% foreign ownership in most sectors
2. Joint Stock Company (JSC):
   
   • Suitable for larger ventures or those planning to offer shares publicly
   • Higher capital requirements and more governance formalities
3. Branch Office:
   
   • Extension of a foreign parent company for specific activities
   • Requires MISA licensing and compliance with Saudi regulations
     
     

Key Tax Considerations

• Corporate Tax (for Foreign Ownership): 20% on taxable profits associated with foreign-owned portions
• Zakat (for Saudi/ GCC Ownership): 2.5% on share of the Saudi or GCC national’s capital/resources
• Value Added Tax (VAT): 15% on goods and services, with monthly or quarterly filings depending on revenue thresholds
• Withholding Tax: Rates vary (5–20%) for payments to non-residents, potentially reduced by double-tax treaties
  
  

Registration Process and Requirements

1. Initial MISA License: Submit a comprehensive business plan, financial projections, and relevant documents for approval
2. Company Name Reservation: Verify availability and reserve your proposed business name with the Ministry of Commerce
3. Draft Articles of Association: Detailing share capital, activities, and shareholder structure
4. Notarization & Commercial Registration: Legalize your company documents, then register the entity with relevant authorities
5. Municipal License & Chamber of Commerce: Obtain the municipal license (if needed) and enroll with the Chamber of Commerce
6. Tax and Zakat Registration: Register for corporate tax, VAT (where applicable), and Zakat with the Zakat, Tax and Customs Authority (ZATCA)
7. Saudi Business Account: Open a corporate bank account with a local financial institution, depositing any required share capital
8. Work Visas & Saudization: Comply with labor laws and Saudization (Nitaqat) quotas for hiring local employees
   
   

Why Saudi Arabia?

• Robust Economy: Largest in the Middle East, strong government spending on development
• Vision 2030 Reforms: Expanding sectors—renewables, entertainment, IT, healthcare, and more
• Pro-Investment Policies: MISA facilitates foreign ownership and streamlined licensing
• Strategic Location: Gateway to the GCC and broader MENA markets
• Infrastructure & Innovation: Ongoing mega-projects (e.g., NEOM) attracting global technology and expertise
  
  

Ongoing Compliance

• Annual Financial Statements: Prepare audited accounts and file them with authorities
• Tax & Zakat Filings: Submit annual returns, plus monthly or quarterly VAT declarations if registered
• Labor & Immigration Compliance: Maintain correct visas, meet Saudization quotas, and follow labor regulations
• Corporate Governance: Keep updated shareholder records, hold required meetings, and notify authorities of any major corporate changes
  
  

Why Work With Us?
Our dedicated experts guide you step-by-step, from securing a MISA license to handling post-incorporation procedures, including tax registrations and Saudization compliance. We simplify the complexities of company formation, ensuring you navigate the Kingdom’s legal landscape smoothly. Capitalize on Saudi Arabia’s expanding market, driven by Vision 2030, and seize new opportunities in one of the Gulf’s most dynamic economies.