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Business Setup In Saudi Arabia (KSA)
Launch your business in one of the fastest-growing economies under Vision 2030. Enjoy 100% foreign ownership, simplified MISA licensing, and quick Commercial Registration (CR) with expert guidance from Incorpyfy, your trusted partner for seamless company formation in Saudi Arabia, from licensing to tax and visa compliance.
Why Set Up a Company in Saudi Arabia?
Saudi Arabia’s economic transformation has positioned it as a regional hub for investors seeking long-term growth and global connectivity. The Kingdom’s supportive infrastructure, reforms, and incentives create an ideal environment for both startups and multinational corporations.
Key advantages include:
- 100% foreign ownership under MISA for most commercial and professional activities
- Strategic location linking Asia, Africa & Europe — perfect for logistics and trade expansion
- Robust legal framework aligned with global investment standards
- Vision 2030 programs promoting diversification in technology, tourism, manufacturing & renewable energy
- Tax-friendly environment with no personal income tax and competitive corporate tax rates
Priority Sectors & Incentives
Saudi Arabia actively supports investors in:
- Renewable energy, manufacturing, healthcare, ICT, logistics, and tourism
- RHQ (Regional Headquarters) Program offering zero tax on dividends & repatriation incentives
- Special Economic Zones (SEZs) providing 5% income tax for 20 years and customs exemptions
(Explore our Business License Services in Saudi Arabia for industry-specific permits and licensing guidance.)
Legal Routes & Entity Types
Choosing the right legal structure for your business setup in Saudi Arabia depends on ownership, activity, and long-term goals.
Limited Liability Company (LLC)
- The most common structure for foreign-owned companies in KSA
- Ideal for trading, contracting, services, and consulting firms
- Requires ≥ 1 shareholder & 1 director
- No fixed minimum capital in most sectors (typically SAR 100k – 500k for foreign ownership)
- Must maintain a registered office and appoint an auditor
Branch / RHQ License
- Enables foreign companies to operate under their parent name
- RHQ entities serve as regional management centres with 10-year tax exemptions
- Both require MISA approval and parent-company documentation
Professional Company
- For consultancy, engineering, IT & other advisory services
- Allows 100% foreign ownership under MISA
- Requires professional qualifications and local approvals
Step-by-Step Business Setup Process in Saudi Arabia (KSA)
Setting up a company in Saudi Arabia requires a structured and compliant approach. At Incorpyfy, we manage every stage — from feasibility analysis to MISA licensing, Commercial Registration (CR), and bank account setup — ensuring your entry into the Saudi market is smooth, secure, and successful.
Pre-Setup Stage: Laying the Foundation
Feasibility Analysis & Market Research
Before you invest, we assess your business idea, study market opportunities, and identify potential risks to ensure your project aligns with Saudi Vision 2030.
Choosing the Right Business Structure
Our consultants help you choose the most suitable legal entity — whether it’s an LLC, branch office, or professional company — to match your ownership goals and activity requirements.
Licensing & Compliance Planning
We explain every approval, handle documentation, and prepare your MISA license application, ensuring you meet all regulatory requirements before incorporation.
Post-Incorporation Stage: Getting Fully Operational
6. ZATCA Tax Registration
We register your business with the Zakat, Tax and Customs Authority (ZATCA) for Corporate Income Tax (CIT), Zakat, and VAT (15 %) compliance.
7. GOSI Registration
Our team enrolls your employees in GOSI (General Organization for Social Insurance), ensuring statutory payroll and insurance compliance.
8. Corporate Bank Account Opening
We assist in opening a business bank account in Saudi Arabia with reputable local banks, helping you manage capital deposits, transactions, and payroll efficiently.
Documents Required for Business Setup in Saudi Arabia
Before you start a business in Saudi Arabia, preparing the right documentation is crucial for a smooth registration process. The requirements vary depending on the company type and ownership structure, but most investors will need the following:
Essential documents include:
- Valid passport copies of all shareholders and directors
- Board Resolution approving the establishment of a Saudi entity
- Certificate of Incorporation and Memorandum of Association from the parent company (for branches or subsidiaries)
- Power of Attorney (POA) legalized by the Saudi Embassy
- Drafted Articles of Association (AoA) in Arabic and English
- Lease agreement for the company’s physical office in Saudi Arabia
- Investment License (MISA license) application and initial approval
- Proof of bank deposit or capital statement (if required by the activity)
- Having these documents ready speeds up your company formation in KSA and helps avoid delays during MISA and Commercial Registration (CR) approval.
Costs & Ongoing Obligations
Understanding your business setup cost in Saudi Arabia helps you plan efficiently. Costs vary by company type, activity, and staff size.
Government Fees (MISA, CR, Baladiyah)
- MISA License: SAR 2 000 – 10 000 per year
- CR Registration: SAR 1 200 – 2 000
- Municipality License: SAR 2 000 – 5 000
Office Lease & Bank Account
- Office Lease: SAR 20 000 – 60 000 / year
- Bank Account: Free to open (min. balance SAR 10 000 – 25 000)
Payroll, GOSI, Visas / Iqama
- Visa / Iqama: SAR 9,000 – 12,000 per employee/year
- GOSI Contribution: Employer 12%, Employee 10%
- Payroll & compliance handled through our Employee Management Services and GRO Services teams
- For integrated support, explore our Business Solutions in Saudi Arabia covering accounting, HR & PRO services.
Business Opportunities Across Riyadh, Jeddah & Dammam
Saudi Arabia’s top commercial cities—Riyadh, Jeddah, and Dammam—each offer unique business advantages for investors.
- Riyadh: The capital and administrative hub, ideal for corporate headquarters and consulting firms.
- Jeddah: The trade gateway on the Red Sea, perfect for logistics, import/export, and tourism businesses.
- Dammam / Eastern Province: The industrial powerhouse with strong oil, manufacturing, and logistics infrastructure.
Choosing the right location depends on your industry and target market. Our consultants at Incorpyfy, Business Setup Company in Saudi Arabia can help you identify the best city for your business goals.
Taxes in Saudi Arabia
Saudi taxation is governed by ZATCA (Zakat, Tax and Customs Authority) with clear rules for foreign and local owners.
- Corporate Income Tax (CIT): 20% on foreign-owned profits
- Zakat: 2.5% on Saudi / GCC ownership share
- Withholding Tax: 5–20% on cross-border payments
- VAT: 15% standard rate on goods & services
- No personal income tax for individuals
Note: Certain industries (e.g., oil & gas) follow special tax rates.
- For accurate filings and ZATCA compliance, our Saudi Business Solutions team provides tax advisory and bookkeeping services.
Saudi Arabia Business Compliance & Renewal Schedule
Running a business in Saudi Arabia requires regular renewals and reports to stay compliant.
Annual requirements include:
- ZATCA filings for CIT / Zakat within 120 days of the fiscal year-end
- VAT returns – monthly or quarterly, based on turnover
- GOSI reports – monthly
- Audited financial statements – mandatory for LLCs
- MISA & Municipality renewals – annually
- Our GRO and Employee Management teams manage these compliances so your licenses stay active without penalties.
Why Choose Incorpyfy for Business Setup Services?
Partnering with Incorpyfy ensures your company setup in Saudi Arabia is fast, compliant, and hassle-free.
Why businesses trust us:
- 15 + years of GCC experience in company formation & government relations
- Expert GROs versed in MISA, ZATCA & GOSI procedures
- Transparent pricing and upfront timelines
- End-to-end support from documentation to post-setup operations
- Dedicated consultants offering bilingual (English & Arabic) assistance
- Whether you’re launching a startup or expanding via our Venture Capital and Incubator Programs, we help your business grow sustainably under Vision 2030.
Freequently Asked Question
How Much Does Business Setup Cost in KSA?
Starting a business in Saudi Arabia in 2025 offers significant opportunities under Vision 2030, but it’s important to plan for your total investment.
Company Registration & Licensing:
- LLC registration (Ministry of Commerce): SAR 10,000 – 20,000
- Additional activity licenses: SAR 5,000 – 30,000
Office Space:
- Office rent: SAR 150 – 500 per sq. meter annually (Riyadh & Jeddah averages)
Professional Services:
- Company setup and legal consultancy: SAR 20,000 – 50,000
- Accounting & auditing: SAR 10,000 – 30,000 per year
Visas & Immigration:
- Work visas: SAR 5,000 – 10,000 per employee
Government incentives such as reduced fees, tax exemptions, and subsidies may apply to foreign investors in priority sectors.
For personalized cost estimates, use our Business Setup Cost Calculator.
What Is the Corporate Tax Rate in Saudi Arabia?
Corporate tax in Saudi Arabia depends on your company’s ownership and sector:
- Standard CIT: 20% for non-GCC or foreign ownership share.
- Zakat: 2.5% for Saudi and GCC nationals’ share.
- Natural Gas Investments: 30% tax rate.
- Oil & Hydrocarbon Production: 85% tax rate.
Saudi Arabia has double taxation treaties with many countries, reducing foreign investors’ tax burdens.
Operating in economic or industrial zones may also grant reduced tax rates or holidays.
For clarity on how this applies to your structure, speak to our Saudi tax experts.
Which Saudi Ministries Are Responsible for Business Setup?
Several key government authorities oversee business registration and licensing in Saudi Arabia:
- Ministry of Investment (MISA): Grants foreign investment licenses.
- Ministry of Commerce (MoC): Issues Commercial Registration (CR) and regulates corporate entities.
- Ministry of Human Resources & Social Development (MHRSD): Manages labor laws and employee permits.
- Ministry of Municipal & Rural Affairs: Handles local permits and workspace licensing.
- ZATCA: Manages taxation and VAT compliance.
- GOSI: Regulates employee social insurance contributions.
Depending on your business type, you may also require approvals from the Saudi Food & Drug Authority, Ministry of Industry, or Capital Market Authority.
Can Different Business Activities Be Combined in Saudi Arabia?
Yes, businesses in Saudi Arabia can combine multiple activities within a single company — provided the activities align logically under one Commercial Registration (CR).
For example, you can combine consulting and IT services under one license, but retail and medical services would require separate approvals.
Sensitive industries such as finance, healthcare, or energy may involve additional licensing from their respective ministries.
If you plan to diversify later, you can amend your CR and Articles of Association (AoA) with approval from the Ministry of Commerce.
What Types of Business Structures Are Available for Foreign Investors?
Foreign investors can choose from several company structures in Saudi Arabia:
- Limited Liability Company (LLC): Most common for trading and service sectors.
- Branch Office: Operates under a parent company’s name; needs a local sponsor.
- Professional Company: For consultancy, legal, and engineering services (can have 100% foreign ownership).
- Joint-Stock Company: For large enterprises; minimum capital SAR 5 million.
- Joint Venture: Partnership between foreign and Saudi entities with flexible ownership terms.
Each structure has unique ownership rules, capital requirements, and documentation processes — best chosen with help from Incorpyfy’s Saudi company setup consultants.
What Are the Requirements for Setting Up a Branch Office in Saudi Arabia?
Setting up a branch office involves several legal and regulatory steps:
- Appointing a local sponsor or service agent.
- Submitting parent company documents (Certificate of Incorporation, AoA, board resolution).
- Providing a business plan, audited financials, and capital proof.
- Registering with the Ministry of Commerce (MoC) and MISA.
- Securing an office lease and municipality license.
- Meeting sector-specific capital or licensing conditions (if applicable).
A local sponsor’s role is primarily administrative — they don’t control your business operations but help with government compliance and renewals.
Is Foreign Capital Investment Required for Trading Branches in KSA?
Yes. As of 2025, the minimum foreign capital investment for a trading branch in Saudi Arabia is SAR 2.5 million (approx. USD 667,000).
This capital supports operational costs such as leasing premises, hiring staff, and procuring inventory.
Investors can inject this capital through bank transfers, asset imports, or equipment investments. Proof of capital is required during registration with MISA and the Ministry of Commerce.
How Much Minimum Capital Is Required for an LLC in Saudi Arabia?
There’s no fixed minimum capital requirement for all LLCs in Saudi Arabia — it depends on the business sector:
- Trading LLCs: SAR 500,000 – 1,000,000
- Professional Services LLCs: SAR 100,000 – 300,000
- Contracting or Industrial Firms: SAR 300,000 – 500,000
While many sectors allow flexible capital, regulated industries may require higher minimums. Always verify with MISA or consult Incorpyfy’s legal advisors.
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