Saudi Arabia Company Formation — TFZ
Enter the Kingdom,
fully owned by you
Saudi Arabia is the largest economy in the Middle East and the centre of the Vision 2030 transformation.
Foreign investors can now own 100% of their Saudi company in most sectors. The process is document-heavy and runs across several government portals — TFZ manages the full journey, from your MISA licence to your first bank account.
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Foreign ownership in most sectors
35M+
Consumers, young population
0%
Personal income tax on salaries
30 yrs
Tax exemption for RHQ income
Why Set Up in Saudi Arabia?
Giga-projects such as NEOM, the Red Sea and Diriyah, and strong government spending have made the Kingdom one of the most attractive markets in the world for foreign investors.
Types of Companies You Can Register
Best for: Most foreign investors
One or more shareholders, 100% foreign ownership in most sectors, liability limited to capital.
Best for: Established international firms
No separate legal identity, parent company fully liable, good for contracting and services.
Best for: Large projects, future listing
Minimum capital SAR 500,000, board of directors required.
Best for: Multinationals managing MENA ops
Special MISA licence, tax incentives, needed to bid for many government contracts.
Best for: Product support and market research
Cannot trade or earn revenue, supports distributors of the parent company.
Best for: Start-ups and founders
Lower entry requirements, must be supported by an approved incubator or accelerator.
Step-by-Step: Saudi Company Formation
Documents Required
Timeline for Setting Up
| Stage | Approximate Time |
|---|---|
| Document attestation in home country | 2 – 4 weeks |
| MISA investment licence | 1 – 2 weeks |
| Articles of Association & Commercial Registration | 1 – 2 weeks |
| Chamber, ZATCA, GOSI, Qiwa & Muqeem registrations | 1 – 2 weeks |
| Bank account opening | 2 – 6 weeks |
| General Manager Iqama | 2 – 4 weeks |
| Total (typical) | 8 – 14 weeks |
Cost of Company Formation
Costs depend on the licence type, activity and office size. Figures shown are indicative, in Saudi Riyals.
| Cost Item | Indicative Amount (SAR) | Frequency |
|---|---|---|
| MISA investment licence fee | 2,000 | Annual |
| MISA subscription / service fee | 10,000 | Annual (first year) |
| Commercial Registration fee | 1,200 | Annual |
| Chamber of Commerce membership | 2,000 – 10,000 | Annual (by size) |
| Articles of Association publication | 500 – 1,000 | One-time |
| General Manager Iqama & work permit | 9,000 – 12,000 | Annual |
| Office rent (small serviced office, Riyadh) | 30,000 – 80,000 | Annual |
| Document attestation | Varies by country | One-time |
| TFZ professional fees | Quoted on request | One-time |
Some activities require minimum share capital — trading, for example, requires higher capital and a track record in three markets. TFZ confirms the exact requirement for your activity before you commit.
Compliance Requirements
Saudi Arabia has a strong regulatory system and penalties for non-compliance can be significant.
Corporate income tax
20% on the foreign-owned share of net profit. Annual return within 120 days of year end.
Zakat
2.5% on the Saudi/GCC-owned share, filed with the same annual return.
VAT
15% on taxable supplies once turnover exceeds SAR 375,000. Monthly or quarterly returns.
Withholding tax
5% to 20% on payments to non-residents. Monthly return.
E-invoicing (Fatoora)
Mandatory electronic invoicing integrated with ZATCA, ongoing.
Saudization (Nitaqat)
Minimum percentage of Saudi employees by sector and size, monitored monthly.
GOSI
Social insurance contributions for all employees, monthly.
Wage Protection System
Salaries paid through registered bank channels, monthly.
Audited financials & renewals
Filed with ZATCA and MISA annually; licences and CR renewed annually.
How TFZ Helps
TFZ | UAE Business Structuring and Corporate Advisory has helped clients enter the Kingdom across trading, contracting, technology and professional services.
Everything You Need to Know About Saudi Formation
From ownership rules to timelines and Regional Headquarters, here are answers to the questions investors ask most.
Fees, timelines and rules quoted on this page are indicative, change from time to time and depend on the authority, licence type and activity chosen. TFZ confirms exact figures in writing before any engagement begins.
Talk to TFZ Today
Contact us for a free consultation and a written quotation for your Saudi Arabia company formation.