Telephone Numbers
Telephone Numbers
Setting Up a Company and Doing Business in Saudi Arabia
For detailed information +90 542 381 3868 'Call.
Tax incentives offered for less developed provinces in the Kingdom
Rights to purchase property and allow ventures to sponsor their own employees
Minimal income tax, with exemptions provided for VAT and customs duties
World Company Setup provides professional consultancy and step-by-step guidance on the company formation process in Saudi Arabia. We ensure good corporate governance from the outset and provide advice on common pitfalls to avoid.
The main steps to consider are the primary and secondary registrations, residency (Iqama) for the General Manager, authorization to hire employees, and opening a bank account. We provide support throughout the entire process, including the initial legalization and attestation of necessary documents at the Saudi Embassy in the foreign investor's home country, all the way through to the issuance of the Commercial Register and registration on the legal entity portal in the Kingdom.
The commercial registration (and supporting licenses) are issued by the Saudi Arabian Ministry of Investment (MISA) and the Ministry of Commerce (MoC). MISA, formerly the Saudi Arabian General Investment Authority (SAGIA), facilitates investment opportunities for foreign and local businesses and individuals in the Kingdom of Saudi Arabia. As MISA is the registration authority, business licenses in Saudi Arabia are often referred to as a MISA license or SAGIA license.
Registering through MISA (SAGIA) is the first step to establishing a business in Saudi Arabia. Essentially, MISA is the gateway to being recognized and permitted to operate in the Kingdom. The primary goal of MISA is to facilitate and promote both foreign and local investment.
The main business entities in Saudi Arabia include the Limited Liability Company (LLC), the Joint Stock Company (JSC), and a Branch of a foreign entity. However, the most common is the Limited Liability Company (LLC), which is permitted 100% Foreign Ownership through MISA.
Saudi Arabia is the largest economy in the Gulf region and is becoming an increasingly favorable destination for foreign investors and companies to expand, aiming to capitalize on the growing Saudi market.
Recent regulatory changes in Saudi Arabia have also significantly increased the appeal of company formation, with 100% foreign ownership now permitted through the Ministry of Investment of Saudi Arabia (MISA) platform.
However, the process can be challenging and time-consuming. Using a Kingdom-based Corporate Service Provider who can oversee the formation from initial registration to full operation will save time and money, allowing you to focus on your business expansion goals and strategy.
Limited Liability Co (LLC) - 100% foreign ownership is permitted through MISA
The Limited Liability Company (LLC) is popular among foreign investors in the Kingdom of Saudi Arabia (KSA), where the individual personal liability of each shareholder is limited to their contribution to the capital.
The LLC is one of the most common forms of legal entity preferred by foreign investors entering the Kingdom's market, and it is well-accepted and widely used.
The Ministry of Investment of Saudi Arabia (MISA) allows a company in KSA to have foreign ownership without a local partner and with minimal government restrictions. A MISA registration/license is required for the establishment of a 100% foreign-owned business in Saudi Arabia. Read more
It is now possible to establish a Single-Shareholder Limited Liability Company in the Kingdom of Saudi Arabia (KSA). This means a limited liability company (LLC) can be formed by a single shareholder who holds 100% of the shares and possesses the rights and powers of the General Manager, the Board of Directors, and the General Assembly of Shareholders. This also means that the liability of the company falls on the individual shareholders, limited to their contribution to the capital, assuming the intentions and practices of the company are appropriate.
The Joint Stock Company (JSC) is arguably the most regulated type of company in the Kingdom of Saudi Arabia (KSA). This is due to the regulatory requirements for its establishment and the degree of control/involvement from the Ministry of Commerce and Industry (MOCI). The liability of a JSC rests with each shareholder, limited to their contribution to the capital. Read more
These branches are considered an extension of their parent companies. Branches can be established relatively faster than LLCs and JSCs.
With a MISA license, a branch can be authorized to carry out a wide range of activities. The branch can engage in both public and private sector projects and can promote/solicit its MISA-licensed activities throughout the Kingdom. Otherwise, branches are not permitted to engage in promotional, marketing, or trading activities.
In the Kingdom of Saudi Arabia (KSA), a sole establishment/proprietorship is referred to as an establishment.
This type of company is suitable for small businesses. In an establishment, there is an individual/sole trader who has unlimited personal liability for the business, and the license is issued in their name; a corporation or legal entity cannot own the business. A sole proprietorship is not a legal entity but refers to the business owner who is personally liable.
To accelerate growth and facilitate investment, World Company Setup offers essential ongoing support services to assist with business success in the Kingdom.
Other Services
Yes - Saudi Arabia has been promoting 100% foreign ownership for several years. Licenses issued through MISA for most activities allow investors to acquire a 100% foreign-owned company, and generally, a business can operate anywhere in the Kingdom.
The Commercial Registration (and supporting Licenses) are regulated by the Ministry of Investment of Saudi Arabia (MISA) and the Ministry of Commerce (MoC). The most common legal status is a Limited Liability Company (LLC), which is permitted 100% foreign ownership through MISA. Activity options for foreign investors are available through the National Classification for Economic Activities (ISIC4), and in most cases, a Saudi national shareholder is not required.
The official language of the Kingdom is Arabic, so all documents must be translated into Arabic by an official legal translator and then submitted to the relevant Government authority. World Company Setup works with trusted legal translation partners to provide these documents.
Currently, there is no employment tax or personal income tax in Saudi Arabia.
Yes. Saudi Arabia has introduced a short-term work visa called the temporary work visa. This is a multiple-entry visa and entitles foreign nationals to work in the Kingdom for 6 months from the date of entry, which can be extended for another 6 months. The temporary work visa is valid for one year from its date of issuance.
The setup costs associated with establishing a company in Saudi Arabia will vary depending on the specific requirements of the company, particularly the activities the company wishes to undertake in the Kingdom and any special approvals that may be required. Other cost considerations include the number of employees and suitable commercial premises (physical office space) in a preferred location.
The Saudi Arabian General Investment Authority (SAGIA) was the former name for the now Ministry of Investment of Saudi Arabia (MISA), a government department that facilitates international investment opportunities and enables international businesses to expand into Saudi Arabia with the ability to be 100% foreign-owned.
In addition to obvious advantages such as the Kingdom's geographical location and easy access to Africa, Asia and Europe, the Saudi government appears to be making great efforts to attract business to the Kingdom. Saudi Arabia launched the Vision 2030 initiative in 2016 to improve the Kingdom's investment environment, attract increased foreign investment, and encourage greater domestic and international private sector participation in its economy. The Kingdom is outlining some key commercial incentives and opportunities to attract investors. The Vision 2030 initiative aims to increase the private sector's contribution to GDP from 40% to 65%.
+90 542 381 3868
+971 58 5204103