The yearly cost of running a company in Saudi Arabia depends on several factors, including the type of business, industry, workforce size, office requirements, and day-to-day operations.

Some of the ongoing expenses businesses should plan for include:

Other important costs to keep in mind:

• Value Added Tax (VAT): A standard rate of 15% applies to eligible goods and services.
• Corporate Income Tax: Non-Saudi shareholders are generally subject to a 20% tax on their share of net taxable profits.
• Withholding Tax: Depending on the type of transaction, withholding tax rates typically fall between 5% and 20%.
• Social Insurance and Employer Contributions: These costs can range from approximately 15% to 30% of employee salaries, depending on the employee's nationality and applicable regulations.

The overall cost of maintaining a Saudi company will vary according to your legal structure, staffing levels, office facilities, and operational requirements. Our specialists can prepare a customised estimate based on your business plans.

Obtaining the Commercial Registration (CR) usually takes around 10 to 15 days. The complete incorporation process, including the General Manager's Iqama and opening a corporate bank account, generally requires 45 to 60 business days.

Our local experts will guide you through each stage and help ensure the process moves forward as efficiently as possible.

Yes. The appointed General Manager is required to visit Saudi Arabia to complete the Iqama application process. The Iqama is a key requirement for activating the company's bank account.

Our team in Saudi Arabia will help coordinate the visit and provide support throughout the final stages of the company formation process.

Yes. Foreign investors can establish a business in Saudi Arabia, but the available options depend on their background and investment profile.

• Existing foreign companies: Businesses looking to expand into Saudi Arabia generally require a MISA licence, with different categories available based on the intended business activity.
• 100% GCC-owned companies: These businesses can establish either a branch office, which remains legally connected to the parent company, or a subsidiary, which operates as a separate legal entity. They may also benefit from combining multiple activities under a single licence, subject to regulatory approval.
• Individual GCC nationals: GCC citizens are treated similarly to Saudi nationals and can choose from a wide range of business structures, including sole establishments, limited liability companies (LLCs), and joint stock companies.
• Startup founders: Entrepreneurs may qualify for Saudi Arabia's Entrepreneurial Licence if their startup is less than five years old and meets specific eligibility criteria, such as venture capital backing, patent ownership, or support from a recognised government body.

The standard annual renewal fee for a MISA licence is SAR 62,000.

For businesses operating under the Entrepreneurial Licence, the fee structure is more gradual:

• Initial registration: SAR 2,000
• Second and third-year renewals: SAR 2,000 per year
• Fourth-year renewal: SAR 12,000
• Fifth year onward: SAR 62,000 annually

The most suitable licence type will depend on your business model and long-term expansion plans. Our team can help you determine the right option for your requirements.