Business Setup & Corporate Services in Saudi Arabia

← View all KSA services

Is 100% Foreign Ownership Possible in Saudi Arabia?

In most sectors, yes. Foreign investors can obtain MISA (Ministry of Investment of Saudi Arabia) investment registration and hold up to 100% ownership in most commercial, industrial and service activities. A limited list of sectors — including some retail activities, certain professional services, and other activities reserved under Saudi Arabia’s Negative List — retain restrictions or require a Saudi partner.

Our support includes:

• MISA investment registration
• Company formation and Commercial Registration (CR)
• Articles of Association drafting
• Business activity selection and Negative List screening
• Foreign company branch and subsidiary establishment
• Corporate documentation and registration coordination

Saudi Arabia’s Ministry of Commerce provides electronic company-establishment services through the Saudi Business Center, including establishment under an investment licence.

Saudi Arabia Corporate Tax — What Actually Applies

Saudi Arabia runs a dual-track tax system administered by ZATCA (Zakat, Tax and Customs Authority):

• Non-Saudi and non-GCC ownership shares pay 20% corporate income tax (CIT) on net adjusted profit.
• Saudi and GCC-national ownership shares pay 2.5% Zakat on the Zakat base instead of CIT.
• Mixed-ownership companies split the obligation proportionally between CIT and Zakat.
• VAT is charged at the standard 15% rate on most goods and services, once taxable turnover exceeds SAR 375,000 per year.
• Foreign companies present in Saudi Arabia for more than 183 days in any 12-month period may trigger a Permanent Establishment, bringing them into the 20% CIT net on Saudi-sourced income.

A wholly foreign-owned company pays 20% CIT on its entire net profit — there is no Zakat relief available to non-Saudi/non-GCC ownership.

Licences & Registrations

• MISA Investment Registration — the foundational licence for eligible foreign investors
• Commercial Registration (CR) — required to carry out commercial activity
• Municipal & Balady Licences — for business, environmental, industrial, medical, food, tourism and professional establishment activities, depending on location and activity
• ZATCA Registration — VAT, corporate tax and Zakat, as applicable
• HRSD & Qiwa registration — workforce and employment platform requirements
• GOSI Registration — General Organization for Social Insurance, for employer and employee contributions
• National Address Registration
• Sector-specific licences for industrial, food, healthcare, tourism, professional services, environmental, retail and other regulated activities

Related services

• Legal & Corporate Support in Saudi Arabia
• Accounting, Tax & Payroll in Saudi Arabia
• Saudi PRO & Government Services
• All KSA services
• Book a Consultation