With a 17-year legacy, Capital International Group excels in offering comprehensive business setup solutions in UAE, KSA & Qatar.

Thu Jun 20 2024Admin

Business Setup in Saudi Arabia

CIG has the expertise and capacity to advise clients on the appropriate business structure in Saudi Arabia, considering the exceptional client's requirements and the adherence to traditional practices.

We have experience managing a diverse array of ventures and topographies across the globe. The legal system necessitates funds to address the responsibilities of an organization. We will provide guidance on the rate at which shareholding is considered outsider, the privileges that accompany that rate, and other business-related matters. For more than a decade, CIG UAE has been conducting operations in the GCC. CIG UAE is more accessible to the client due to its association in Saudi Arabia, which provides a more comprehensive understanding of Saudi Arabian company laws and practices.

Licensing for Saudi Arabia (KSA) Company Formation

The license issuer for foreign investment company registration is the Saudi Arabian General Investment Authority (SAGIA/MISA). When establishing a business in Saudi Arabia (KSA Company Setup), foreign investment is permitted at 100% in all service sectors. However, trading and retail activities are exclusively reserved for Saudi nationals.
Types of Taxes on Company Formation in Saudi Arabia (KSA)
  • 20% service company tax
  • 2% tax on local Saudi companies

Taxation and Accounting

Three kinds of taxes are applicable to shareholder companies and their structures:
  1. Corporate Tax: Foreign ownership is assumed for all registered entities and branches.
  2. Withholding Tax: This tax is imposed on entities that generate revenue from non-residential enterprises, including royalties, rent, and management fees.
  3. Zakat Tax: Local Saudi investors and company proprietors are subject to a tax of up to 2%, while non-Saudis are subject to a 20% corporate tax.
In certain instances, the income tax of non-Saudis is considered part of the corporate tax when the company is owned by both Saudi and non-Saudi entities. Meanwhile, Saudi shares and other tax charges are taxed under Zakat.
Basic Registrations for Saudi Arabian Company Formation:
  • Saudi General Investment Authority License;
  •  Incubation Letter for Subsidized Licensing Fee;
  • Articles of Association (AOA);
  • Commercial Registration;
  • Chamber of Commerce Registration
Additional licenses that may be required
  • Register with the Ministry of Labor and Social Development (MLSD) • Register with the General Organization of Social Insurance (GOSI) • Register with the General Authority of Zakat and Tax (GAZT)
  • Local address registration (Wasel) is needed.
  • The issuance of a General Manager visa
CIG UAE is the optimal location for company formation in Saudi Arabia, as they offer comprehensive support and assistance from the initial stages to the final establishment.