GCC · Jurisdiction profile
🇸🇦 Doing business in Saudi Arabia
Foreign founders most often use a LLC (MISA licence). Saudi Arabia follows sharia-based civil system, with corporate tax of 20% + Zakat on Saudi share and personal income tax of 0%.
Entity at a glance
| Typical vehicle | LLC (MISA licence) |
|---|---|
| Foreign ownership | 100% in most sectors |
| Minimum capital | SAR 500,000 typical |
| Time to incorporate | 30–60 days |
| Corporate tax | 20% + Zakat on Saudi share |
| VAT / GST | 15% |
| Dividend withholding | 5% |
| Resident director | Not required |
| Physical office | Required |
| Annual running cost | USD 15,000–40,000 |
| Audit | Mandatory |
| Legal system | Sharia-based civil system |
| Currency controls | None |
Regulatory profile
- Data transfers: PDPL — SDAIA approval for most transfers (residency approach: strict).
- Employment termination: protective regime.
- Beneficial ownership register: regulator-only.
- Economic substance test: applies.
- Information exchange: CRS + FATCA IGA Model 1.
Compare Saudi Arabia with
Saudi Arabia vs Qatar (QFC)Saudi Arabia vs Qatar (Mainland)Saudi Arabia vs UAE (DIFC)Saudi Arabia vs UAE (ADGM)Saudi Arabia vs BahrainSaudi Arabia vs United KingdomSaudi Arabia vs SingaporeSaudi Arabia vs United States (Delaware)Saudi Arabia vs India
Figures are indicative and change often. Verify with qualified local counsel. Xc.legal is not a law firm.