Table 1: Comprehensive comparison of the five investment entities
| Criterion | Limited Liability Company (LLC) | Simplified Joint Stock Company (SJSC) | Foreign Company Branch | Entrepreneur Licence (Startups) | GCC Investor Track |
|---|---|---|---|---|---|
| Nature of the entity | Independent legal entity with limited liability | Flexible entity designed for startups and venture capital | Direct legal and operational extension of the parent company | Licence dedicated to approved innovative projects | Direct national entity for GCC citizens |
| Foreign ownership | Up to 100% | Up to 100% | 100%, belongs to the parent company | Up to 100% for entrepreneurs | 100% for GCC nationals |
| Minimum capital | Set by the partners in the articles (no minimum) | None (starts from SAR 1) | None as an independent entity | None | None, like a Saudi citizen |
| Foreign parent company required | Yes (CR and one year of audited financials) | Yes (if the founder is a legal person) | Yes (CR and two years of audited financials) | Not required (letter from a Saudi business incubator) | Not required (can be set up as an individual or a company) |
| Share / quota classes | Equal cash or in-kind quotas | Multiple classes (preferred, ordinary, redeemable, ESOP) | Not applicable | Simplified quotas or shares | Depends on the chosen entity |
| Tax treatment | 20% income tax on the foreign share | 20% income tax on the foreign share | 20% income tax on profits | 20% income tax on profits | Exempt from income tax (Zakat 2.5%) |
| Initial application gateway | Invest Saudi portal | Invest Saudi portal | Invest Saudi portal | Invest Saudi portal | Saudi Business Center directly |
Table 2: Estimated government costs and fees for setting up a foreign service company (SAR)
| Phase | Government item | Estimated official fees (SAR) | Legal basis and notes |
|---|---|---|---|
| 1. International legalisation | Document legalisation (Apostille or embassy) | Approx. SAR 1,500 – 4,500 | Depends on the home country; the Apostille route is much cheaper |
| 2. Ministry of Investment | Registration in the National Investor Register | Approved payment notice fees | Paid once through Invest Saudi within 15 days |
| 3. Commercial Registration | Unified CR, articles of association and publication | ~SAR 1,955 (1,200 CR + 500 publication + 15% VAT) | Saudi Business Center (covers the main CR and all activities and branches) |
| 4. Chamber of Commerce | Annual Chamber of Commerce subscription | Included in the CR invoice | Varies by capital category and city |
| 5. National address | Registering the premises in the national business address (SPL) | SAR 500 – 1,000 per year | Mandatory for bank accounts and licences |
| 6. General Manager | Work visa, iqama, medical check and work permit | SAR 2,500 – 3,500 for the first stage | Passports and Ministry of Human Resources fees |
| 7. Medical insurance | Mandatory health insurance for the General Manager | SAR 600 – 3,500 per year | Depends on age group and coverage network |
| 8. Qiwa platform | Establishment’s annual Qiwa subscription | SAR 1,265 – 2,645 for small establishments | Mandatory annual subscription for work permits and contracts |
| 9. Balady licence | Commercial and office activity licence and signboard | SAR 500 – 2,500 per year | Balady platform; depends on area and the Ejar lease |
| 10. Civil Defense | Electronic safety certificate for administrative premises | SAR 100 – 500 for offices | Salama platform; issued instantly for low-risk administrative offices |