Vision 2030 is driving one of the most significant economic transformations in the Middle East, and Saudi Arabia is actively welcoming foreign investors across almost every sector. The government has simplified the rules, moved the entire setup process online, and permits 100% foreign ownership in Saudi Arabia.
Is There 100% Foreign Ownership in Saudi Arabia?
Foreign entrepreneurs are allowed to fully own their business in Saudi Arabia, without needing a local partner. Most industry sectors allow 100% foreign ownership, as long as you have a MISA (Ministry of Investment of Saudi Arabia) license. This applies to a wide range of industries, from wholesale and retail to manufacturing and professional services.
Process of Company Setup in Saudi for Foreigners
This is how foreigners can setup a company in Saudi:
- Get your MISA license: This is the first and most important step. The MISA license is issued by the Ministry of Investment and is what legally allows a foreigner to own and operate a business in Saudi Arabia. It takes around 5-10 days to get the license.
- Reserve your trade name: Before anything else can be registered, you need to secure your company name through the Ministry of Commerce platform. Name reservations are valid for two months.
- Obtain your Commercial Registration (CR): The CR is the document that legally brings your company into existence in Saudi Arabia. It is issued by the Ministry of Commerce and is required before you can open a bank account, hire staff, or sign contracts.
- Notarise your Memorandum of Association: Your founding documents need to be prepared, signed, and notarised. If your parent company is based abroad, those documents must also be attested by the Saudi Embassy in your home country.
- Register your National Address: A National Address is mandatory and must be registered via Saudi Post (SPL). This is a requirement for all businesses operating in the Kingdom.
- Open a corporate bank account: Once your CR is issued, you can open a business bank account. This also enables you to set up the Wage Protection System, which is required if you plan to hire employees.
What is the Cost of Saudi Business Setup for Foreigners?
Setting up a company in Saudi Arabia as a foreigner costs between SAR 45,000 and SAR 150,000. The total cost for company formation in Saudi Arabia depends on your legal structure, sector, and whether you need documents attested from abroad.
Government license fees range from SAR 12,000 to SAR 35,000 for the first year. The minimum share capital for an LLC in Saudi Arabia depends on the sector of business, most sectors dont require a minimum capital.
Documents for Company Setup in Saudi for Foreigners
These are the documents you need to set up a company in Saudi Arabia as a foreigner. Having these prepared and attested before you begin will save you time and prevent delays mid-process.
- Attested audited financial statements for the past year
- Passport copies for all shareholders and directors
- Proposed Articles of Association/Memorandum of Association
- Board resolution authorising the establishment of the Saudi entity
- Attested parent company Commercial Registration (for branches or subsidiaries)
Start a Business in Saudi Arabia With IncorpKSA
Whether you’re launching a service business, expanding an industrial operation into one of the Saudi industrial cities, or establishing a regional headquarters, IncorpKSA handles the full company formation in Saudi Arabia process, from MISA license to bank account. Get in touch to start your business today!
FAQs
Can Non-Saudis do business in Saudi Arabia?
Non-Saudi individuals are allowed to run a business in Saudi Arabia as long as they have a valid license. Foreigners are also allowed to own 100% of their company for most business activities.
Is Saudi Arabia tax free for businesses?
Saudi Arabia is not tax free for businesses. Foreign-owned companies pay a 20% corporate income tax on profits. VAT is charged at 15% and becomes mandatory once revenue exceeds SAR 375,000. Saudi or GCC-owned shares are subject to Zakat at 2.5% instead of income tax. However, there is no personal income tax for residents.
How long does it take to set up a business in Saudi Arabia?
The full process for company setup in Saudi for foreigners usually takes around one month. The MISA license itself can be approved within 5 to 10 business days, while the remaining time goes into document attestation, registrations, and opening a bank account
