Short, clear answers to the questions investors ask most about setting up a company in Saudi Arabia. For an assessment of your specific case, contact us.
Can a foreign investor own 100% of a company in Saudi Arabia without a sponsor or local partner?
Yes. Under the new Investment Law and the Companies Law, full 100% foreign ownership is available across service, technology and industrial activities, without a local partner or sponsor.
What is the minimum capital to set up a company in Saudi Arabia?
The law sets no minimum capital for service and technology activities in a Limited Liability Company (LLC) or a Simplified Joint Stock Company (SJSC). Restricted activities such as wholesale and retail trade with 100% foreign ownership require capital of SAR 30 million with an investment commitment, or SAR 26.66 million with a 25% Saudi partner.
How long does the Ministry of Investment take to decide on an investment registration?
Article 12 of the Implementing Regulations of the Investment Law requires the investor to be notified of the registration result within a maximum of 10 working days from meeting the requirements.
Do GCC nationals need to register with the Ministry of Investment (MISA)?
No. GCC nationals are treated like Saudi citizens in practising economic activities, and their Commercial Registration is issued directly through the Saudi Business Center without going to the Ministry of Investment for most activities.
What taxes apply to foreign companies in Saudi Arabia?
The foreign partner’s share is subject to corporate income tax at 20% of annual net profit, while the Saudi and GCC partners’ share is subject to Zakat at 2.5%. Value Added Tax (VAT) applies at 15%. Reference: Zakat, Tax and Customs Authority (ZATCA).
How long is the grace period to correct a non-serious violation under the Implementing Regulations?
Article 28 of the Implementing Regulations gives the investor no less than 30 working days to correct a non-serious violation before any penalty is imposed.
Do foreign company documents need Saudi embassy attestation if the country is a member of the Apostille Convention?
No. If the country is a member of the Apostille Convention, an apostille from the home country is enough and there is no need to visit the Saudi embassy.