Kingdom of Saudi Arabia (KSA) – Business Setup

About Kingdom of Saudi Arabia

The Kingdom of Saudi Arabia, founded in 1932, is focused on achieving its goals outlined in the “Vision 2030” initiative. This comprehensive plan aims to transform various sectors, including finance, energy, tourism, entertainment, and healthcare. With over 70,000 registered companies and a population of over 34 million, the country's strategic location at the crossroads of Europe, Africa, and Asia makes it an ideal hub for regional and international trade.

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The country has made significant investments in its infrastructure, including transportation networks, logistics hubs, ports, airports, and industrial cities. The well-regulated and stable financial sector, supported by established banks and financial institutions, provides access to various financial services, such as banking, investment, and trade finance, which further support business operations and growth.

The Saudi Arabian economy, the largest in the Middle East and North Africa region, is actively reducing its dependence on oil revenues through the Vision 2030 plan. The government has taken steps to attract foreign investors by simplifying registration processes, offering tax incentives, providing access to land, and developing infrastructure. The Saudi Arabian government has also implemented measures to simplify business processes, strengthen contract enforcement, protect intellectual property rights, and increase transparency, creating a favorable environment for business development and investment.

MISA / SAGIA License Information

In a transformative move during the year 2020, SAGIA underwent a complete overhaul, emerging as the Ministry of Investment Saudi Arabia (MISA). This revamped entity is now solely responsible for granting investment licenses to foreign investors and overseeing foreign investment activities in the Kingdom.

The Ministry of Investment of Saudi Arabia (MISA) presents an enticing opportunity for foreign investors to establish a Limited Liability Company (LLC) within the KSA without the need for a local partner, while also facing minimal government restrictions. To operate with 100% foreign ownership in Saudi Arabia, obtaining the MISA registration/license is a prerequisite for any business venture.

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The MISA Investor License empowers entrepreneurs with full ownership of their businesses, granting them the freedom to operate seamlessly across Saudi Arabia. The nature of your economic activities determines the specific license required for your business.

The array of available activities spans various sectors, with professional service activities (non-trading) being open to 100% ownership by expatriates. Similarly, trading activities can also be fully owned, provided a minimum paid-up share capital is furnished.

Before completing the company formation process, the paid-up share capital must be deposited into a corporate bank account within Saudi Arabia. The amount of paid-up capital needed varies depending on the type of license and the nature of the business activities. For instance, a service professional license necessitates a deposit of USD 150,000, while a Trading license requires USD 8 million along with 25% Saudi national ownership.

Operating under the MISA License, businesses are subject to a corporate income tax rate of 20%, while withholding tax ranges from 5% to 20%. Additionally, a value-added tax (VAT) rate of 5% applies to eligible transactions.

The MISA / SAGIA setup presents an attractive proposition for foreign investors seeking to explore the promising landscape of Saudi Arabia's business opportunities. With streamlined procedures and more liberal ownership regulations, the Kingdom is embracing a new era of investment facilitation, inviting entrepreneurs from around the globe to participate in its economic growth story.

Company Formation in Saudi Arabia (KSA): Registration Process
5 Simple Steps are needed to Register a Company in Saudi Arabia
Contact Us for a Free Consultation
SFM Corporate Services provides complimentarycompany formation consultation to existing and potential clients.
Select your Company Type
We offer many company formation options here for single or multiple shareholders and directors.
Get a License Notification
Company formation application process begins once all necessary documents are acquired.
Start your Residency Process
Following your KSA Company's registration, the authorities will process and stamp your residency permit.
Rapid Bank Account Opening
At SFM, we feel it’s vital that a company holds corporate onshore or offshore bank account.

Banking Options

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Company Formation in KSA: Benefits & Tax Advantages

  • 100% foreign ownership
  • 20% corporate tax
  • Up to 50 shareholders
  • Strategic access to global markets
  • Strong contract enforcement & financial incentives
  • Largest economy in MENA
  • Residence Visa
  • 12th safest country in the world
  • Enhanced infrastructure, transportation, logistics, ports, and airports
  • New modern environment perfect for the safe storage of goods within proximity to your retail environment

Company Formation in KSA: Types of License

  • Services License
  • Industrial License
  • Real Estate license
  • Commercial License
  • Transport License
  • Consulting license for Engineering Offices
  • Consulting License for Technical & Economic Communication Offices
  • Entrepreneur License
  • Agricultural License
  • Mining License
  • Regional Headquarter License
  • Audiovisual Media License
  • License for Scientific and Technical Office
  • Printing and Publishing License
  • License for Serving Agents and Providing Workers Services

Why Choose SFM As Your Corporate Provider?

We prioritize confidentiality and data protection to ensure the safety of your sensitive information. We offer competitive pricing to provide cost-effective solutions for your business needs. SFM has a high client satisfaction rate, which is a testament to our commitment to excellent service. Additionally, we have a team of experts with extensive knowledge and experience, business experts and an international group of companies who are members of leading associations. SFM also has a strong executive team that conducts business with integrity and due diligence, guaranteeing the best possible outcome for your company.
Documents Required
for the KSA company formation
Business Plan, Passport Copy, Copy of Articles of Association/Memorandum of Association for company, Copy of the Commercial Registration/Certificate of incorporation for Company, Copy of Certificate of Incumbency for Company , A Board Resolution to register the LLC in Saudi Arabia, A POA to register the LLC in Saudi Arabia, Audited financial statement for the last financial year of the company. **

Additional documents may be needed at any point during the incorporation process at the discretion of the license issuing authority

Kingdom of Saudi Arabia(KSA) Jurisdiction News

SFM Jurisdictions: Saudi Arabia's Vision 2030 Ignites Business Opportunities

15 April 2024
The Kingdom of Saudi Arabia (KSA) is not only a land of rich cultural heritage but also a burgeoning beacon for global investors and entrepreneurs. At the heart of the Middle East and North Africa (MENA) region [..]

Explore the Kingdom of Saudi Arabia

25 October 2023
SFM is thrilled to announce that as we continue our mission and growth, we are now able to provide our comprehensive suite of corporate services in the Middle East’s largest and fastest growing economy, Saudi Arabia [..]
* Subject to the constraints of the due diligence procedure.
** Documents must be provided for every person related to the company.
Disclaimer: Nothing on this webpage shall be construed as a contractual commitment or as a warranty. Services conditions are governed by the applicable terms and conditions.

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