Doing business in Saudi Arabia

How quickly can I set up a business?

Two to four weeks for the issuance of commercial registration and article of association. Two weeks to issue the related licences, provided all requirements are met.

What is the minimum investment needed?

Previously, there was a limit for the minimum investment amount, but currently there is no limit for investment. Moreover, investment depends on the nature of business activity.

How can I raise finance?

Self- finance. Also, entities can obtain funds through loans from local banks after meeting certain criteria.

What are the legal requirements for setting up my business?

Entities in the Kingdom of Saudi Arabia can be set up in different legal forms which include:

1. Joint stock
2. Closed Joint stock
3. Limited Liability (including Joint Venture)
4. Limited partnership
5. Sole proprietorship
6. A branch of a foreign Company
7. A Representative office

What structure should I consider?

To establish a business in KSA, the appropriate procedure is to register an entity with the Ministry of Commerce and Investment.

Most of foreign Companies choose the following legal structures:

1. Limited liability Company

• A foreign Company can establish an entity for up to100% ownership interest (i.e. a subsidiary of a foreign Company).

2. A branch of a foreign Company
3. A Representative office

What advice can you give me in regards to payroll and taxation requirements?

Payroll in KSA is subject to Wages Protection Rule.

20% Tax rate is imposed on net annual income.

Annual audited accounts and tax returns must be filed with the Zakat, Tax, and Customs Authority (ZATCA).

Transfer pricing is applicable.

Withholding tax is applicable.

Annual audit accounts must be uploaded to the MOCI.