Short answer: Yes. A foreign company or foreign individual can own 100% of a company in Saudi Arabia, with no Saudi partner or sponsor, in most economic activities. Since the new Investment Law came into force in February 2025, foreign investors no longer apply for a “MISA licence”. They complete an Investment Registration with the Ministry of Investment (MISA), which takes 10 working days once the file is complete. They then incorporate the company and obtain a Commercial Registration (CR) through the Saudi Business Center. A few activities still require Saudi participation or a higher minimum capital, and these are listed below.
Last verified against official Saudi government sources: 3 November 2026. Regulations and fees change. Every figure on this page links to its source, and we re-check them before each client engagement.
Key facts at a glance
| Item | Current position (November 2026) |
|---|---|
| Foreign ownership | Up to 100% in most activities, without a Saudi partner |
| First step | MISA Investment Registration (replaced the MISA licence in February 2025) |
| MISA processing time | 10 working days from a complete application |
| MISA fee | Determined by the Ministry upon approval, payable within 15 business days |
| Company incorporation and CR (LLC) | SAR 1,200 + SAR 500 publication + 15% VAT; service completed within 72 hours |
| Minimum capital (LLC) | No general statutory minimum; activity-specific minimums apply (e.g. SAR 30 million for 100% foreign-owned trading) |
| Corporate income tax | 20% on the profit share of non-Saudi, non-GCC shareholders |
| VAT | 15%; registration mandatory above SAR 375,000 annual taxable supplies |
| Dividends paid abroad | 5% withholding tax (may be reduced by a tax treaty) |
The legal basis: the Investment Law (in force February 2025)
Saudi Arabia’s Investment Law took effect in February 2025 and replaced the Foreign Investment Law of 2000. Its implementing regulations were published in April 2025. Three changes matter most to foreign founders:
- Registration instead of licensing. The discretionary foreign investment licence was abolished. Foreign investors now register each investment with MISA and receive an Investment Registration Certificate.
- Equal treatment. Saudi and foreign investors are treated equally in similar circumstances.
- Excluded activities. A defined list of activities stays closed or restricted to foreign investment. An investor can apply to MISA for an exception, and MISA refers the request to the competent authority.
Many websites still describe a “MISA licence” with fixed annual fees. That information predates February 2025.
Which activities allow 100% foreign ownership?
Most activities in the national ISIC4 classification are open to full foreign ownership. MISA’s Investor Guide (13th edition, 2026) sets specific conditions for the following activities:
| Activity | 100% foreign? | Conditions (per MISA Investor Guide) |
|---|---|---|
| Commercial (trading), 100% foreign | Yes | Minimum capital SAR 30,000,000 and presence in at least 3 regional or global markets |
| Commercial (trading) with a Saudi partner | Mixed | Minimum capital SAR 26,666,667 and at least 25% Saudi participation |
| Communications activities | No | At least 40% Saudi participation (30% for supporting communications activities) |
Professional & Consultancy Companies (100% Foreign Ownership):
Under the Saudi Professional Companies Law (Royal Decree M/17) and updated regulatory frameworks from the Ministry of Investment (MISA) and relevant professional authorities:
- International Law Firms: Foreign law firms can now establish 100% foreign-owned branch offices or form joint professional companies in Saudi Arabia under licenses issued directly by the Ministry of Justice (MOJ) pursuant to the Implementing Regulations for Licensing Foreign Law Firms.
- Engineering Consultancy Firms: Can be licensed with up to 100% foreign ownership through MISA and accreditation from the Saudi Council of Engineers (SCE) based on operational capabilities and technical classifications, moving away from legacy restrictive multi-country quotas.
- Management, Technical & Financial Consulting: Available for 100% foreign ownership under standard MISA Service Investment registration with zero statutory minimum capital.
- Accounting & Auditing: Regulated under the Saudi Organization for Chartered and Professional Accountants (SOCPA) guidelines, allowing foreign professional partnerships with licensed Saudi auditors.
Services, technology, consulting, manufacturing and many other activities fall outside these special categories and can usually be 100% foreign-owned. Before you prepare any documents, check that your exact ISIC4 activity code is open to investment.
Choosing the right legal structure
- Limited Liability Company (LLC): The most common vehicle for foreign investors. It can be formed by one or more individuals or companies. Each owner’s liability is limited to their share of the capital, and the Companies Law sets no mandatory minimum capital: the partners set it in the articles of association at a level sufficient for the company’s purpose.
- Joint Stock Company (JSC): Issued capital must be at least SAR 500,000, with at least one quarter paid at incorporation (Companies Law, Article 59).
- Simplified Joint Stock Company (SJSC): A flexible structure for startups and venture-backed companies.
- Branch of a foreign company: An extension of the parent company. It has no separate legal personality, so the parent stays directly liable for the branch’s obligations.
- Regional Headquarters (RHQ): For multinational groups that want to manage their regional operations from Riyadh (see below).
Step-by-step: how to set up a 100% foreign-owned company
- Confirm the activity and structure. Map your business to ISIC4 activity codes, check them against MISA’s activity conditions and the excluded activities list, and choose between an LLC, a JSC or a branch.
- Attest documents in your home country. For a corporate shareholder, MISA requires the parent company’s commercial registration certified by the Saudi Embassy, plus its financial statements for the last fiscal year, also authenticated by the Saudi Embassy. Some activities require additional documents.
- Apply for MISA Investment Registration. Apply online through the Invest Saudi e-services portal. MISA processes a complete application within 10 working days. Any fee is set on approval and must be paid within 15 business days, or the registration lapses.
- Incorporate the company and obtain the CR. Use the Saudi Business Center (business.sa) service “Establishment of Company Under Investment Registration Certificate”. Your Investment Registration must stay valid for at least 30 days. Fees for an LLC are SAR 1,200 plus SAR 500 publication plus 15% VAT.
- Complete the automatic government registrations. Issuing the CR also opens your files with the Ministry of Human Resources (Qiwa), ZATCA, the social insurance authority (GOSI), the Chamber of Commerce and the Saudi Post national address.
- Open a corporate bank account and deposit capital. Timelines depend on each bank’s compliance (KYC) review.
- Activate your workforce and residency. Lease a physical office if your activity needs one, then register in Qiwa and Muqeem and issue work visas and residence permits (Iqamas) for the general manager and staff.
Government fees you should budget for
| Item | Authority | Official fee |
|---|---|---|
| Investment Registration | MISA | Determined by the Ministry upon approval |
| Annual registration update | MISA | Determined by the Ministry; processed within 5 working days |
| CR issuance: LLC | Ministry of Commerce | SAR 1,200 + SAR 500 publication + 15% VAT |
| CR issuance: JSC or simplified JSC | Ministry of Commerce | SAR 1,600 + SAR 500 publication + 15% VAT |
| Annual CR confirmation: LLC | Ministry of Commerce | SAR 1,200 per year |
Your budget should also cover costs outside these government fees: attesting documents abroad, certified translation, office rent, medical insurance and professional fees. These vary from case to case, and we quote them in writing after reviewing your file.
Taxes for a foreign-owned company in Saudi Arabia
- Corporate income tax: 20% of net adjusted profit attributable to non-Saudi, non-GCC shareholders. A company that is 100% foreign-owned pays income tax on its entire taxable profit.
- Zakat: 2.5% of the Zakat base. This applies only to the share held by Saudi and GCC shareholders. Mixed-ownership companies pay both, each on its own share.
- VAT: 15%. Registration is mandatory when taxable supplies exceed SAR 375,000 over 12 months, and optional above SAR 187,500.
- Withholding tax on payments to non-residents (domestic rates): dividends 5%, interest 5%, royalties 15%, management fees 20%, technical and consulting services 5%, rent 5%, other services 15%. A double tax treaty can reduce these rates.
- Personal income tax on salaries: none.
Regional Headquarters (RHQ) incentives
An RHQ that meets MISA’s criteria and ZATCA’s economic substance requirements gets 0% income tax on eligible income from eligible activities. It also pays 0% withholding tax on dividends and on payments to related parties. Both incentives last 30 years and can be renewed. An RHQ must be a separate legal entity, start its mandatory activities within six months, and employ at least 15 full-time staff within its first year, including at least three at executive director or vice-president level.
Residency for owners, managers and staff
Employer-sponsored residence permit (Iqama)
| Fee | Amount | Paid by |
|---|---|---|
| Iqama issuance or renewal | SAR 650 per year | Employer |
| Work permit fee (expat levy) | SAR 700 per month (SAR 8,400 a year) per expatriate while expatriates are equal to or fewer than Saudi employees; SAR 800 per month (SAR 9,600 a year) for each expatriate above the number of Saudi employees | Employer |
| Work permit licence | SAR 100 per year | Employer |
| Dependant or companion fee | SAR 400 per dependant or companion per month (SAR 4,800 a year) | Resident |
Premium Residency: no sponsor required
The Premium Residency Center (pr.gov.sa) offers seven products. Its holders can do business, own property, live in Saudi Arabia with their families, and travel in and out without a visa. Holders are also exempt from MISA’s first three foreign-company document requirements when registering an investment. The products most relevant to investors are:
| Product | Main condition | Fee and term |
|---|---|---|
| Investor Residency | The applicant’s investment in the company of at least SAR 7 million, with a valid MISA investment registration; at least 10 employees in the Kingdom, registered with GOSI, within the first two years | SAR 4,000 one-time fee; conditional permanent residency |
| Entrepreneur Residency, Category 1 | MISA entrepreneur licence, at least SAR 400,000 raised from an approved investment entity, at least 20% ownership | SAR 4,000; 5 years |
| Entrepreneur Residency, Category 2 | At least SAR 15 million raised, at least 10% ownership, 10 employees in year one and 10 more in year two | SAR 4,000; permanent, conditional for 2 years |
| Real Estate Owner Residency | Residential real estate worth at least SAR 4 million | SAR 4,000; tied to ownership |
| Limited Duration | General eligibility (financial solvency, clean record, age 21+) | SAR 100,000 per year, renewable |
| Unlimited Duration | General eligibility | SAR 800,000 one-time |
Processing can take up to 90 working days. Thresholds are reviewed periodically, so confirm the current criteria for your product on pr.gov.sa before you apply.
Ongoing compliance after incorporation
- Annual MISA investment registration update.
- Annual CR confirmation with the Ministry of Commerce.
- Annual income tax (and, where applicable, Zakat) return with audited financial statements, filed, and any amount due paid, within 120 days of the financial year-end.
- Monthly or quarterly VAT returns once registered. Monthly returns are mandatory above SAR 40 million in annual supplies.
- Monthly withholding tax returns for payments to non-residents, plus an annual withholding return.
- Saudization (Nitaqat) obligations, managed through the Qiwa platform.
Frequently asked questions
Can a foreigner own 100% of a company in Saudi Arabia without a Saudi partner?
Yes, in most activities. The investor registers with MISA and then incorporates the company. Exceptions include communications activities (which need Saudi participation), most professional activities (which need a licensed Saudi partner), and 100% foreign-owned trading, which needs SAR 30 million in capital and presence in at least three markets.
Is a MISA licence still required in 2026?
No. Since February 2025 the licence has been replaced by MISA Investment Registration. Registration is still mandatory before a foreign investor invests or incorporates.
How long does it take to set up a company?
Once the attested documents are ready, MISA registration takes 10 working days and the Ministry of Commerce issues the CR within 72 hours. Document attestation abroad and bank account opening usually take longer, and their timing depends on your country and your bank.
What is the minimum capital for a foreign-owned LLC?
The Companies Law sets no general minimum for an LLC. Some activities do have one; for example, 100% foreign-owned trading requires SAR 30 million. Banks and MISA also expect the capital to be adequate for the activity you plan.
Can profits be transferred out of Saudi Arabia?
Yes. Dividends paid to a non-resident shareholder are subject to 5% withholding tax, and an applicable double tax treaty may reduce that rate.
Do I need to live in Saudi Arabia to own the company?
No. Ownership does not require residency. The company does need a manager who can act locally, and anyone who works in Saudi Arabia needs an Iqama or Premium Residency.
Official sources
- MISA Investor Guide, 13th edition (2026)
- Saudi Business Center: Establishment of Company Under Investment Registration Certificate
- Ministry of Commerce: annual CR confirmation
- ZATCA: General Guideline for Withholding Tax
- ZATCA: Guideline for Regional Headquarters
- Premium Residency Center (via GOV.SA)
This page is general information, not legal or tax advice. Requirements depend on your activity, structure and nationality. Contact us for an assessment of your specific case.
Related guides
- MISA Investor Registration under the new Investment Law
- Post-Incorporation Licensing: Balady, Civil Defense and sectoral licences
- Labour compliance: Qiwa, Nitaqat, Mudad and GOSI
- Professional and consulting companies
- Simplified Joint Stock Company (SJSC)
- Company formation for GCC nationals
- Estimated costs and comparison of legal forms
- Corporate bank account assistance