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Company Formation in Saudi Arabia

100% Foreign Ownership, Expert Local Support

Saudi Arabia delivers a scale that other Gulf markets cannot match. With 85% of Vision 2030 targets achieved and 675 multinational headquarters established, business in Saudi Arabia combines proven execution with unprecedented opportunity. PI Startup Advisory documents 700+ with a 100% approval rate across GCC markets.
15–30 Working Days | 100% Foreign Ownership | 100% Approval Rate | SAR 40,000–80,000+ ($10,666–21,333)

Why Foreign Investors Choose Saudi Arabia

Saudi Arabia's Vision 2030 reforms create the Middle East's most dynamic investment environment. Setting up a company in Saudi Arabia delivers strategic advantages:

  • Market Access

    Gateway to $1.6 trillion GCC economy. Direct connections to Europe, Asia, and Africa through strategic location and infrastructure.

  • Complete Ownership

    100% foreign equity permitted across most sectors. No mandatory local sponsor or partner requirements for operations.

  • Tax Benefits

    Regional Headquarters enjoy a 30-year zero corporate tax. Special Economic Zones offer 20-year tax holidays with duty exemptions.

  • Digital Efficiency

    MISA streamlines foreign investment licensing online. Government services accelerate approvals through digital transformation.

  • Economic Growth

    $1.3 trillion GDP with 56% non-oil diversification. Tourism, technology, renewable energy, and logistics sectors are expanding rapidly.

8-Step Company Registration Process in Saudi Arabia

Step 1: Name Reservation (1-2 Days)

Reserve a unique company name through the Ministry of Commerce online portal. Name must reflect business activity without restricted words. Certificate confirms availability.
Name Reservation

Step 2: MISA License Application (3-10 Days)

Obtain an investment license based on business type: Service, Industrial, Entrepreneurial, or RHQ. Submit business plan, shareholder documents, and reserved name.
MISA License Application

Step 3: Articles of Association (2-5 Days)

Draft company bylaws covering structure, capital, governance, and profit distribution. The Saudi public notary must authenticate the document.
Articles of Association

Step 4: Commercial Registration (5-10 Days)

Receive the CR number and certificate from the Ministry of Commerce. A unique identifier is required for all official transactions.
Commercial Registration

Step 5: Chamber Registration (1-3 Days)

Join the Saudi Chamber of Commerce for business credibility. Membership provides access to government tenders and networking.
Chamber Registration

Step 6: Corporate Bank Account (3-7 Days)

Open an account with Al Rajhi Bank, Saudi National Bank, Riyadh Bank, or SABB. Requires CR, Chamber certificate, and MISA license.
Corporate Bank Account

Step 7: Municipality Approvals (7-30 Days)

Obtain sector-specific permits from the local municipality. Food, healthcare, construction, and education need regulatory clearances.

Step 8: Tax & Labor Registration (3-5 Days)

Register with ZATCA for tax compliance. GOSI registration ensures employees receive social insurance coverage.

Types of Business Entities

  • Foreign Company Branch

    Features: General manager required, parent company holds full liability

    Capital: Based on the parent company’s financial standing

    Ownership: 100% foreign ownership, Saudization policies apply

    Best For: Market testing, government contracts, established corporations

  • Regional Headquarters (RHQ)

    Features: Fast-track processing, visa quotas included, operations in 2+ countries required

    Capital: Varies by company size and sector

    Ownership: 100% foreign ownership, 30-year zero corporate tax incentive

    Best For: Multinational corporations managing GCC/MENA operations

  • Limited Liability Company (LLC)

    Features: 1-50 shareholders, limited liability protection, flexible management structure

    Capital: SAR 500,000 minimum (most activities)

    Ownership: 100% foreign ownership permitted with MISA license

    Best For: Service providers, consultancies, trading companies, SMEs

  • Joint Stock Company (JSC)

    Features: 2+ shareholders, Board of Directors mandatory, can list on Tadawul

    Capital: SAR 10 million minimum (public JSC)

    Ownership: 100% foreign ownership allowed, higher regulatory compliance

    Best For: Industrial ventures, multinationals, capital-intensive businesses

Required Documents for Business Setup in KSA

    All shareholders and managers provide notarized, attested passport copies. Foreign companies submit a board resolution authorizing Saudi operations. A power of attorney is required if using a legal representative.

    Articles of Association govern the company’s internal structure and operations. A name reservation certificate confirms the approved company name. A registered office lease agreement serves as proof of physical address.

    Foreign documents need Saudi Embassy attestation before submission. Approved translator must provide certified Arabic translations. Proper document formatting prevents delays and resubmissions.

Business Licenses in Saudi Arabia

Service License

Most common for consultancy, IT services, training, and logistics operations. Permits 100% foreign ownership with a minimum capital requirement of SAR 500,000. Covers professional and commercial service activities.

Industrial License

Required for manufacturing and production facilities. Offers customs exemptions on imported equipment and VAT deferral options. Environmental clearance is mandatory before approval.

Entrepreneurial License

Explicitly designed for startups and tech ventures. Features lower capital requirements, accelerated processing timelines, and temporary Saudization exemptions for early-stage companies.

Regional Headquarters License

Premium option for a multinational operations hub. Provides zero corporate tax for 30 years, fast-track approvals, and visa quota benefits for qualifying corporations.

Tax Structure

Corporate Tax: 20% for foreign-owned entities

Personal Income Tax: 0%

VAT: 15% standard rate

Withholding Tax: 5-20% (varies by service)

Zakat: 2.5% (Saudi/GCC shareholders only)

Special Incentives:

  • RHQ: 30-year zero corporate tax
  • SEZ: 20-year tax holidays available
  • Priority sectors: Reduced rates possible
Tax Structure

Why Choose PI Startup Advisory

Proven track record with 100% approval rate. Deep expertise in foreign company registration in Saudi Arabia.

Established relationships with MISA, the Ministry of Commerce, and Saudi banks. Navigate regulations efficiently.

From MISA licensing through bank accounts to visa processing. Complete company setup in Saudi Arabia management.

Expert guidance for LLC company formation in Saudi Arabia. Understanding international business needs.

Clear package costs with detailed breakdowns. Business setup cost in Saudi Arabia is quoted upfront with no surprises.

English, Arabic, and additional languages available. Smooth communication for international clients.

why choose pi startup advisory

Client Success Stories

Regulatory Authorities

Ministry of Investment (MISA)

Issues foreign investment licenses. Approves business activities and ownership structures.

Ministry of Commerce (MoC)

Handles commercial registration. Issues CR certificates and business licenses.

Saudi Chamber of Commerce

Provides membership and business credibility. Facilitates government tender access.

ZATCA (Tax Authority)

Manages VAT and corporate tax compliance. Registers businesses for tax obligations.

GOSI (Social Insurance)

Processes social insurance registration. Manages Saudization compliance monitoring.

Frequently Asked Questions

Start a business in Saudi Arabia through 8 steps: name reservation, MISA license, AoA drafting, commercial registration, Chamber membership, bank account, municipality approvals, and tax registration. Total timeline 15-30 working days.

How to check company registration in Saudi Arabia?

Verify company registration in Saudi Arabia through the Ministry of Commerce online portal using the CR number. MISA website confirms the validity of investment licenses. Chamber of Commerce membership is searchable by company name.

Can a foreigner start a business in Saudi Arabia?

Yes. 100% foreign ownership permitted across most sectors through MISA licensing. LLC company registration in Saudi Arabia allows complete control without the requirement for a local sponsor.

How much does it cost to set up a company in Saudi Arabia?

Business setup costs in Saudi Arabia range from $13,333 to $ 21,333 USD (SAR 50,000 to 80,000), depending on the package. Includes MISA license, CR, Chamber membership, documentation, and support. Government fees, legal services, and office lease included.

What is the company formation in Saudi Arabia?

Company formation in Saudi Arabia is a complete business registration process. Includes MISA investment license, commercial registration certificate, Chamber membership, bank account, tax registration, and labor compliance.

Can you own 100% company in Saudi Arabia?

Yes. Foreign investors own 100% equity in most sectors with an MISA license. Foreign company registration in Saudi Arabia permits full ownership without a local partner across IT, healthcare, education, logistics, tourism, and manufacturing.