Frequently asked questions

Yes. Foreign investors can establish companies in Saudi Arabia with 100% foreign ownership in many economic activities, including service and industrial activities, through a Ministry of Investment licence.

Yes. Gulf investors can establish companies in Saudi Arabia without restrictions, as they receive the same treatment as Saudi investors.

Saudi Arabia offers an attractive investment environment including tax exemptions for certain strategic projects, full ownership in most activities, and access to a large, fast-growing market.

The minimum capital depends on the activity type and legal form; trading activities, for example, have set thresholds while many service activities have no fixed statutory minimum. We confirm the requirement for your specific case.

A sole establishment is owned by one person who bears its financial liability from personal assets, while an LLC is a separate legal entity whose owners are liable only up to their capital contributions.

The steps include obtaining the investment licence from the Ministry of Investment, registering the company with the Ministry of Commerce, opening a tax file with ZATCA, and completing municipal and labour registrations.

Establishing a company in Saudi Arabia usually takes between two weeks and one month, depending on the activity type and how complete the documents are.

Yes. Establishing a company in Saudi Arabia requires an official address, whether a physical office or a virtual office, in accordance with the applicable regulations.

No. Foreign investors can freely transfer their profits abroad, provided they comply with all applicable tax and accounting requirements.

Saudi Arabia imposes a 20% corporate income tax on foreign-owned companies, in addition to value added tax (VAT) at 15% and withholding tax on certain payments abroad.

No. Foreign investors are not required to pay Zakat; Zakat applies only to Saudi-owned companies, while foreign-owned companies are subject to corporate income tax.

Late-filing penalties vary with the length of the delay and can reach up to 25% of the tax due for extended delays, so timely filing is essential.

Yes. Saudi Arabia offers certain tax incentives for foreign investors, such as exemptions in special economic zones and incentives for strategic projects.

Companies in Saudi Arabia must follow International Financial Reporting Standards (IFRS) and prepare annual financial statements accordingly.

Yes. The business activity can be changed or new activities added after incorporation, but the investment licence must be amended with the Ministry of Investment and the commercial register updated.

Yes. The company can be sold or assigned to another investor provided all legal procedures are completed, including transferring the licences and updating the commercial register.

Dissolution and liquidation involve settling all debts and financial obligations, cancelling the commercial register with the Ministry of Commerce, and filing the final tax returns.

The documents include an attested copy of the parent company's commercial register, the latest financial statements, passports of the owners and manager, and the incorporation resolution, with certified Arabic translation.