Saudi Arabia Company Setup: MISA Licence, Commercial Registration, Zakat and VAT

Step-by-step guide to starting a company in Saudi Arabia: MISA investment licence, commercial registration, ZATCA tax, Zakat, 15% VAT and Saudisation considerations.

Saudi Arabia is one of the fastest-growing business markets in the region as Vision 2030 drives investment in technology, construction, logistics, tourism and healthcare. Foreign investors can set up in the Kingdom, but the process has its own licensing and compliance steps.

Common legal forms

• Limited Liability Company (LLC)
• Branch of a foreign company
• Regional Headquarters (RHQ) programme for multinationals
• Joint-stock or professional companies

Typical set-up steps

1. Obtain an investment licence from the Ministry of Investment (MISA) for foreign-owned companies.
2. Reserve the trade name and register in the Commercial Register through the Ministry of Commerce.
3. Prepare articles of association and complete chamber of commerce registration.
4. Register with ZATCA for tax, and with GOSI and Qiwa for social insurance and employment.
5. Open a corporate bank account and plan staffing, including Saudisation quotas.

Taxes to understand

• Corporate income tax: 20 percent on the foreign-owned share of profit
• Zakat: 2.5 percent on the Saudi or GCC-owned share of the zakat base
• VAT: 15 percent
• Withholding tax: 5 to 20 percent on certain payments abroad, depending on the type
• E-invoicing (Fatoorah) requirements apply in phases

Timeline and cost

Saudi licensing normally takes longer than Gulf free zones because several authorities are involved. Timing depends on the activity, capital, documents and attestation.

How we help

BIZEASE SOLUTIONS coordinates with licensed local partners for MISA and commercial registration and then sets up ZATCA, VAT, accounting and payroll. Rules are updated frequently, so we verify the latest requirements before each filing.

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This article is general information, not legal, tax or financial advice. Rules and rates change, so confirm your situation with a qualified adviser.

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