Business Setup in Saudi Arabia
100% Foreign Ownership
Start your own business in Saudi Arabia
Foreign investors view the Kingdom of Saudi Arabia (KSA) as an attractive destination for business, thanks to its welcoming approach to international investment, ease of doing business, and strong economic foundation. However, setting up a business in Saudi Arabia can be both exciting and complex.
Establishing a company in KSA without expert guidance can be challenging, as navigating the legal, regulatory, and cultural landscape requires in-depth understanding. ABH Associate simplifies the process by providing expert legal insights and hands-on support to ensure a smooth and efficient market entry. We offer a range of business setup options in Saudi Arabia tailored to your financial and operational needs.
To attract foreign direct investment, government authorities continue to expand opportunities for new businesses. Our team helps you choose the ideal business structure, stay updated on market trends and licensing regulations, and provides end-to-end guidance for building a successful and compliant business in Saudi Arabia.
What are the advantages of Business Setup in KSA?
Saudi Arabia, the largest Arab nation and the strongest economy in the Middle East, is deeply committed to fostering an investor-friendly environment and enhancing business accessibility. Its strategic location connecting Europe, Asia, and Africa makes it a key global hub for trade, offering exceptional opportunities for investors, businesses, and entrepreneurs.
The Saudi government has launched several financial incentive programs to encourage company formation and attract foreign investment. For new market entrants, initial registration and setup fees are reduced by 50% during the first year. Additionally, foreign investors can own 100% of a business established in the Kingdom. Setting up headquarters in Saudi Arabia comes with multiple benefits aligned with the nation’s Vision 2030 goals.
Saudi Arabia has also signed numerous double-taxation treaties, enabling foreign investors to minimize tax liabilities and avoid being taxed twice on the same income — further strengthening its appeal as an investment destination.
The country is home to several Economic and Industrial Cities, each designed to promote growth in specific sectors. Economic Cities such as King Abdullah Economic City, Prince Abdulaziz Bin Mousaed Economic City, Knowledge Economic City, and Jazan Economic City offer lucrative incentives and infrastructure to support innovation, manufacturing, and international collaboration.
The main benefits of setting up a company in Saudi Arabia include:
- A strong and diversified economy driving consistent growth
- A population of 36.95 million people
- A skilled labour force of 15.36 million individuals
- 50% of the population under 25, ensuring a youthful and dynamic workforce
- 100% foreign ownership permitted for businesses
- A GDP per capita of USD 29,920
- Investor-friendly regulations and policies that support business expansion
- $389 billion in foreign direct investment (FDI) inward stock
- Easy access to government projects and contracts for investors
How to Start a Business in Saudi Arabia?
- Prepare all necessary documentation for company incorporation.
- Register the company with Saudi Arabia’s Ministry of Investment (MISA).
- Finalize the articles of association and other legal documents.
- Obtain the company’s Commercial Registration (CR) license.
- Select a business location and register a national address.
- Complete all post-incorporation registrations.
- The General Manager (GM) must obtain an Iqama resident visa.
- Register the GM with the government and update the company records accordingly.
- Open a corporate bank account in Saudi Arabia by signing and submitting the application in person at the bank.
In Saudi Arabia, the primary types of legal entities are as follows:
- Joint Stock Company (JSC)
- Branch of a Foreign Company
- Limited Liability Company (LLC)
- General Partnership
- Office of Technical and Scientific Services
- Regional Headquarters (RHQ)
The requirements for paid-up capital and shareholding structures vary depending on the company type and the applicable legal regulations.
Establishing a foreign company in Saudi Arabia
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Expanding an existing company in Saudi Arabia
International investors in Saudi Arabia have a variety of investment opportunities, supported by the nine types of licenses issued by the Ministry of Investment of Saudi Arabia (MISA).
- The available licenses include:
- Agricultural Investment License
- Service Investment License
- Mining Investment License
- Industrial Investment License
- Trading Investment License
- Real Estate Investment License
- Professional Investment License
- Scientific/Technical Investment License
- Regional Headquarters Investment License
Not all licenses allow 100% foreign ownership unconditionally. Only investments in services, manufacturing, and agriculture can have full foreign ownership without restrictions, while other license types may have specific requirements.
02
Bringing an already-existing business to Saudi Arabia that is entirely owned by GCC citizens
Setting up a branch office or subsidiary is a common approach for businesses fully owned by GCC nationals to expand in Saudi Arabia.
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Branch Office: A branch office operates as an extension of a GCC company legally established in Saudi Arabia. It is separate from the parent company and possesses its own legal identity.
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Subsidiary: A subsidiary is an independent legal entity established by a GCC company in Saudi Arabia, with its own board of directors and management operating independently from the parent company.
03
A GCC national seeking to establish a new business in Saudi Arabia
When setting up a business in Saudi Arabia, GCC nationals enjoy the same rights as Saudi citizens and have access to the same company structure options:
- Limited Liability Companies (LLCs)
- Joint Stock Companies
- Sole Proprietorships
- Required documents for business setup in Saudi Arabia:
- Trade License / Commercial Registration / Certificate of Incorporation
- Memorandum of Association / Articles of Association
- Notarized Audited Financial Statement for the previous financial year
- Power of Attorney
Cost of company formation in Saudi Arabia
Registering a company in Saudi Arabia is designed to be a straightforward and efficient process, but the total cost varies depending on several factors—such as your business location, company size, and number of employees.
- Typical expenses may include:
- Annual registration and renewal fees for a MISA license
- Entrepreneurial license registration fees
- Commercial registration and renewal fees
- Company Gazette publication charges
- Commercial certificates issuance
- Annual Chamber of Commerce registration and renewal fees
- Bank account requirements, including a minimum average balance for LLCs
To ensure a smooth and cost-effective setup, it’s advisable to work with an experienced business setup consultant in Saudi Arabia, such as A&A Associate. Their in-depth understanding of local regulations and procedures helps minimize costs and streamline the entire registration process.
FAQ
Frequently Asked Question
Why Choose Dubai For Starting A Business?
Dubai stands as a leading global business hub, offering world-class infrastructure, a prime location connecting major markets, tax-friendly policies, political stability, and a diverse, innovation-driven economy. Its dynamic environment, business-friendly setup process, and vast growth opportunities make it an ideal destination for entrepreneurs and investors worldwide.
What Support Does Dubai Offer to Entrepreneurs Starting a Business?
Dubai provides strong support for entrepreneurs through streamlined business setup procedures, flexible licensing options, investor visas, and dedicated free zones offering tax benefits and other incentives. Additionally, government initiatives and extensive networking opportunities help businesses grow and expand successfully.
What Are My Options for Company Formation in the UAE, and How Much Does It Cost?
You can set up your business in Free Zone, Mainland, or Offshore jurisdictions — each offering distinct advantages. Free Zones allow 100% foreign ownership and tax benefits, Mainland companies provide full access to the UAE market, and Offshore entities are ideal for international operations without a physical office. The cost of business setup in Dubai varies based on the jurisdiction, business activity, and license type. ABH Associate offers transparent pricing and customized solutions to help you choose the most suitable structure for your business goals.
What Types of Business Licenses Are Available in Dubai?
Dubai provides several business license options, including Commercial, Professional, Industrial, and Tourism licenses. Each license is tailored to specific activities such as trading, consultancy, manufacturing, or hospitality. ABH Associate guides businesses in selecting the most suitable license based on their industry and operational requirements.
How Long Does Company Formation Take in Dubai, and What Documents Are Required?
The company formation process in Dubai generally takes three weeks to several months, depending on the business type, jurisdiction, and legal requirements. Commonly required documents include passport copies of shareholders, visa copies (if applicable), proof of address, a business plan or company profile, and any industry-specific approvals. ABH Associate provides a comprehensive checklist to ensure a smooth and efficient setup process.