The process takes approximately 1 to 3 months, depending on the business type and documentation.
Not necessarily. Many sectors allow 100% foreign ownership under MISA’s Entrepreneur or Foreign Investor License.
Yes, especially in sectors supported by MISA and Vision 2030.
An LLC is an independent legal entity with limited liability. A Branch represents the parent company and requires additional compliance with foreign regulations.
Consider factors like liability, control, industry restrictions, and plans for expansion. LLCs are often favored for flexibility and limited liability.
Yes, sectors such as oil exploration, military industries, and broadcasting are restricted to local ownership.
Required documents include: Audited financial statement (1 year), Certificate of Incorporation, Memorandum of Association, Board Resolution, and a Power of Attorney for the local consultant. Documents must be apostilled or fully attested depending on the country of origin.
A Saudi national or authorized consultant must book the trade name. It should be in Arabic, meaningful, and not include geographic names. In some cases, your existing foreign company name may be used.
Key license types include Service License (e.g., IT, tourism), Industrial License (e.g., factories), and Trading License (e.g., import/export).
Yes. You must obtain a recommendation letter from an incubator, accelerator, or VC approved by the Ministry of Investment (MISA). The license is designed for startups with or without a parent company.
Yes. Each distinct business activity (e.g., trading, services, manufacturing) requires a separate license and relevant approvals.
Most startups have no minimum capital requirement. Many begin operations with as little as SAR 5,000.
Foreign companies are subject to 20% corporate tax on adjusted net profits. A 15% VAT applies if revenue exceeds SAR 375,000. Withholding tax (5%–20%) may apply on payments made to foreign entities.
No. You must obtain a Commercial Registration (CR) and MISA license before opening a corporate bank account in Saudi Arabia.
Documents include: CR (Arabic/English), MISA Digital License, AOA, list of activities, national address, passport and Iqama of owners/partners, and company stamp. Some banks offer online setup.
There are no major restrictions. However, companies must settle taxes and fulfill regulatory obligations before transferring funds internationally.
Employer costs include: employee salaries, visa issuance (SAR 9,600 per expat), medical insurance, and Ministry of Labor fees.
Available visa types include: General Manager (GM) Visa, CEO/Chairman Visa, and standard employee work visas.
Once your CR and MISA license are approved, apply via the MISA portal. Submit passport details, CR, and employment verification.
Foreign employees need a valid work visa, medical insurance, and a company with an active CR. Compliance with Ministry of Labor regulations is mandatory.
Yes. Sponsorship is standard and required to obtain an Iqama (residency permit) for foreign employees.
The Iqama is a residency permit issued to foreign workers. Application is completed through the Qiwa and Muqeem portals after medical tests and insurance registration.
It usually takes about one week after the employee's arrival in Saudi Arabia, provided all documents and medical checks are complete.
Renewals are submitted through the Qiwa and Muqeem portals. Ensure all required documents, medical tests, and fees are current before initiating the renewal.
Yes. Medical tests including communicable disease screening are mandatory before an Iqama can be issued.
Saudization (Nitaqat) is a policy requiring private companies to employ a certain percentage of Saudi nationals, based on company size and sector.
Categories include Platinum, Green, Yellow, and Red—based on the percentage of Saudi nationals employed. Higher categories receive more benefits.
Percentages vary by sector and company size. Platinum and Green indicate high compliance; Yellow and Red indicate underperformance.
Consequences include restricted access to government services, inability to renew or issue visas, and potential business operation delays.
Each part-time Saudi employee is counted as 0.5 of a full-time employee for Saudization purposes.
Yes. Each employee with a registered disability is counted as four Saudi employees, provided they are employed full-time.
Penalties include fines, suspension of license services, inability to hire expatriates, and legal repercussions.
Platinum and Green companies receive faster government processing, priority visa services, and permission to recruit expatriates from lower-tier firms.
The minimum salary for a Saudi employee to count toward Saudization is SAR 4,000 per month.
Support includes wage subsidies from HRDF, access to platforms like Taqat and Tamheer, and government-sponsored training programs.
Hire more Saudis, offer part-time or remote work options, and invest in training and upskilling Saudi employees using government initiatives.
Yes. Medical insurance is compulsory for all foreign employees and is required to issue or renew the Iqama (residency permit).
Penalties may include fines, suspension or revocation of business licenses, and restrictions on future operations or employee visas.
Foreign companies must maintain valid licenses, pay applicable taxes, follow labor laws, and comply with Saudization and immigration policies.
VAT registration is required if your annual revenue exceeds SAR 375,000. Register through the ZATCA portal and file quarterly returns.
Yes. All foreign-owned companies are required to undergo annual financial audits and submit reports to the appropriate authorities.
Yes. Foreign investors can open multiple companies, but each must go through the full company formation and registration process individually.
A physical office is mandatory for most license types. Co-working spaces that provide legal addresses can fulfill this requirement.
The Saudi Authority for Intellectual Property allows the registration of trademarks, patents, and copyrights to safeguard your IP.
You must submit a closure request to MISA, cancel all licenses, settle outstanding debts, and notify relevant authorities. The process may take several months.
Yes. You can convert your business structure (e.g., from a Branch to an LLC) by applying through the Ministry of Commerce and MISA with appropriate documentation.
Yes, as long as e-commerce is listed as an approved activity in your license. Additional registration with platforms like Maroof may be required.
Foreign-owned companies may purchase property that is directly related to their operations, subject to approval from the appropriate authorities.
Common challenges include understanding local regulations, navigating language and cultural differences, achieving Saudization quotas, and adapting to business norms. Working with a trusted local consultant helps mitigate these issues.
At One Page.®, we are committed to providing accurate, up-to-date support for company formation in Saudi Arabia. If you have corrections, suggestions, or need expert help, reach us at [email protected].
