Create a Saudi Arabia Company in the UAE
kingdom of saudi arabia (ksa) - incorporate in the most emerging economy of the world

Saudi arabia - company formation

Similar to Qatar and Dubai, Saudi Arabia taxes its investors only if their profits are earned from activities within the emirate. These activities could be generated directly by a Company, a Permanent Establishment of an overseas parent or a Joint Stock Company. In this instance taxation rate will depend on the origin of these investors; if they are non Saudi tax residents then the corporation tax rate is 20% whilst the local  Saudi businesspersons are taxed based on the Zakat (which is an islamic assessment for tax purposes).

In the event that a company is owned by both Saudi and non Saudi shareholders the profits are apportioned accordingly and taxed separately.


Applicable Taxes

- Zero Tax if income is derived outside the emirate of Saudi Arabia

- Taxable Income within the Saudi Arabia: 20% Corporation Tax or for locals 2.5% Zakat (religious tax)

- Disposal of Shares - taxed at 20%

- Non Saudi employees Social Securities Tax is 2% whilst for Saudi employees is higher at 12% (10% relates to housing allowance - capped at SAR 45,000)


Local Tax Office

The local tax office is called "The Zakat, Tax and Customs Authority" and it is a modern and digitalised department.

Tax Payers and Tax Consultants can use the online platform offered for various tasks including:

  • Tax Rulings
  • VAT Returns
  • Customs
  • Real Estate Tax
  • Withholding Tax
  • Excise Tax


Modern Approach

The taxpayer and the service providers can obtain from the income tax office electronically several information including:

  • Tax Returns (submissions and review)
  • Amendments of tax information
  • File on line objections
  • Requests for certificates
  • Request for rulings
  • Many more


E- Invoicing for everyone!

The emirate has introduced the e invoicing service where effectively all sales invoices are registered centrally. Applicable date is  1st of January 2023

The use of a sophisticated electronic solution is mandatory and via this approach all sales invoices are appropriately raised, recorded and addressed.


Double Tax Treaty Network

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  • Azerbaijan
  • Bangladesh
  • Belarus Article
  • China Article
  • Czech
  • Egypt
  • Ethiopia
  • Gabon
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Ireland
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Korea
  • Kyrgyzstan
  • Luxembourg
  • Macedonia
  • Malaysia
  • Malta
  • Mexico
  • Morocco
  • Netherlands
  • Pakistan
  • Poland
  • Portugal
  • Romania
  • Russia
  • Singapore
  • South Africa
  • Spain
  • Sweden
  • Syria
  • Tajikistan
  • Tunisia
  • Turkey
  • Turkmenistan
  • Ukraine
  • United Kingdom
  • Uzbekistan
  • Venezuela
  • Vietnam
  • Bulgaria
  • Cyprus
  • Switzerland
  • Georgia
  • United Arab Emirates
  • Mauritania 
useful corporate information for saudi arabia companies

Company formation time frame

App.3 months


Corporate bank account timeframe

Appr. 2 months after the company formation


Composition of the Company

  • Director and General Managers are required - % of local staff is required.
  • Company secretary is required - no need to be local
  • Registered office / address is required - can not be a virtual office, shared office would suffice
  • Shareholders can be 100% international



There is VAT in KSA (Kingdom of Saudi Arabia) at 5% for sales taking place within the Kingdom

Like in Europe, there is voluntary and compulsory VAT registration subject to sales thresholds being exceeded within 12 consecutive months.


Corporate Tax

There is corporate tax of for sales taking place within the KSA


Free Zones

Although extensively talked about, there are no free zones in KSA.



Besides the income statement and balance sheet, most application forms and banking documents are in Arabic. Hence local expertise is required.


incorporation process

Incorporation in the Kingdom of Saudi Arabia (KSA) can be broken down in three main phases as explained below:


Phase 1

  • Decide Company Type - Limited Company, Permanent Establishment of Overseas Company or Joint Stock Partnership.

  • Obtain the MISA Investor License - designed for international companies who want to be established and trade in Saudi Arabia
  • Name Reservation - Tricky as it could take 3 weeks to be approved or be rejected without explanation. Local requirements for similarities, protected brands, and prohibited names exist like in Europe.
  • Drafting the Company Articles of Association (AoA) - Must be signed by the General Manager and will be scrutinised during the licensing process.
  • Obtain Company Commercial Registration 
  • Registration with Chamber of Commerce

Phase 2 - Employee Related

The KSA is sensitive with recruitment and has its unique particularities that must be followed. We demonstrate below the process in  chronological order:

  • Chamber of Commerce - Registration of the General Manager of the Company and employees
  • Register with Ministry of Labour - employees will be registered; depending on industry requirements to hire local employees may exist
  • Godi - Register the Company and the Employees with the Social Insurance Office (Godi)
  • Taxes - Registration with tax authorities for the local taxes (Religious tax zakat and Corporation Tax)
  • Obtain a national address; needed for licensing of the Company and banking application
  • Obtain a visa (tourist or entrepreneur) for the General Manager of the Company

Phase 3 - Banking and Legalisations

  • Acquire Residency for the Company
  • Prepare the Bank Account Application
  • The General Manager of the Company has to visits the KSA and obtain Medical & Health Insurance 
  • Convert General Manager visa to KSA residency (iqama)
  • Register with Muqeen portal
  • Register with Absher portal
  • Register with Qiwa and Mudad pottal
  • Complete the bank account application
contact us

Our team of experts can facilitate any enquiry you may have from incorporating your company anywhere in the Middle East to banking, substance services and on going professional support. 

At present we specialise in Dubai, Qatar and KSA (Kingdom of Saudi Arabia) company formation and compliance support services.

Accounting, audit and if applicable tax services are routinely performed to all our clients anywhere in the world. Our multidisciplinary team will ensure that other linguistic or cultural differences are welcomed and valued.

What are you waiting for?

Contact us for a free first consultation at: or + 357 22 041 380.