Saudi Arabia

Company formation and compliance in Saudi Arabia.

A foreign investor enters Saudi Arabia in two steps: a MISA investment licence first, then a Commercial Registration from the Ministry of Commerce / Saudi Business Center. The 2023 Companies Law (Royal Decree M/132) offers the LLC, the new Simplified Joint Stock Company built for startups and venture capital, and the JSC, or a branch of the foreign parent. Direct tax is dual-track: 20% corporate income tax on the profit share attributable to non-Saudi/non-GCC ownership and 2.5% Zakat on the Zakat base attributable to Saudi/GCC ownership, filed together within 120 days of year-end. VAT is 15% with mandatory registration above SAR 375,000 of taxable supplies, withholding tax on payments to non-residents runs from 5% to 20% by payment type, and FATOORAH e-invoicing is effectively universal. GOSI contributions are far heavier for Saudi/GCC staff than for expatriates, and Nitaqat sets a Saudization ratio that gates work-visa services. Filings and the registers are in Arabic, and foreign corporate documents need certified Arabic translation plus Saudi legalisation. Almost no Saudi government fee is published on a page we could read: MISA licence, CR, Chamber and municipality amounts are quoted at scoping, not listed here.