Company formation in Saudi Arabia
LLC (100% foreign via MISA licence)
Legal minimum, year 1£8,560
Legal minimum, per year after£3,500
Typical year 1£17,560
Corporation tax20%Ease Banking
Every fee
Setting up
Government fee£2,560
MISA licence + CR, about SAR 10,000 to 15,000Formation agent or lawyer£1,000 to 4,000
Required
Office lease (Ejar)£1,000 to 5,000
Required
General manager visa and iqama£500 to 1,500
Required
Share capitalVaries by activity
Time to form4 to 8 weeks
Running it, per year
MISA and CR renewal£1,000 to 2,500
Required
Office lease£1,000 to 5,000
Required
Statutory audit£1,500 to 4,000
Required
Zakat and tax compliance£0 to 2,000
Practically needed
Legal minimum after year 1£3,500
Audit: MandatoryForeign ownersNo Saudi director, but a resident general manager is needed in practiceVisit usually needed; office lease mandatory
Tax20% on foreign share of profit (2.5% zakat on Saudi share)Dividend withholding: 5% on dividendsVAT/GST: 15%
BankingNeeds a resident GM with iqama
Required for government contracts under the regional HQ rules.
SourcesPwC tax summary
Questions
- How much does it cost to set up a company in Saudi Arabia?
- The legal minimum for the first year is £8,560, counting only what the law requires and doing every filing yourself. A typical first year, with an accountant, costs about £17,560. The government fee is £2,560 (MISA licence + CR, about SAR 10,000 to 15,000). Share capital is not included.
- How much does it cost per year to run a company in Saudi Arabia?
- The legal minimum after the first year is £3,500 a year. Running costs including optional and practically needed services range from £3,500 to 13,500. Audit: Mandatory.
- Do I need a local director in Saudi Arabia?
- No. No Saudi director, but a resident general manager is needed in practice.
- Can a non-resident form a company in Saudi Arabia remotely?
- Not fully. Visit usually needed; office lease mandatory.
- What is the corporation tax rate in Saudi Arabia?
- 20% on foreign share of profit (2.5% zakat on Saudi share). Dividend withholding: 5% on dividends. VAT/GST: 15%.
- How long does it take to form a company in Saudi Arabia?
- 4 to 8 weeks.
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