Business Setup in Saudi Arabia

The documentation needed varies based on your shareholder structure:

• For corporate shareholders: You’ll typically need a notarized and attested Commercial Registration, Articles of Association (AoA), a Board Resolution, and a Power of Attorney.

• For individual shareholders: Requirements include passport copies, residency information, and standard KYC documents.

Our legal team manages the entire documentation and attestation process, ensuring a smooth and compliant company setup in Saudi Arabia.

Yes. After your company is officially registered, the General Manager (GM) can apply for a work visa and obtain an Iqama (residency permit). Additionally, your company can sponsor work and residency permits for foreign employees. Our team at Al Madani & Co. handles this entire process as part of your business setup in Saudi Arabia.

• 100% Foreign Ownership and full profit repatriation permitted in many sectors

• Entry into the largest and fastest-growing economy in the Middle East

• Strong government incentives and support for foreign investors under Vision 2030

• Strategic geographic location offering easy access to GCC and international markets

• Advanced infrastructure and digital government services for seamless operations

• Access to a young, skilled, and tech-driven workforce

These advantages make Saudi Arabia a highly attractive destination for global business expansion.

Companies operating in the Kingdom of Saudi Arabia (KSA) must meet the following regulatory and compliance requirements:

• Annual renewal of the MISA license

• Renewal of Commercial Registration (CR)

• Updating the National Address regularly

• Submission of audited financial statements each year

• Timely VAT filings with the Zakat, Tax and Customs Authority (ZATCA)

• Regular GOSI (General Organization for Social Insurance) contributions

• Health insurance coverage for all employees

• Proper use and management of government portals like Absher, Qiwa, Muqeem, and Mudad

Staying compliant with these obligations ensures smooth and uninterrupted business operations in Saudi Arabia.

• Corporate Income Tax: A flat 20% tax applies to profits of foreign-owned entities

• Zakat: Applicable only to fully Saudi-owned companies

• Value Added Tax (VAT): 15% VAT applies to most goods and services

• Withholding Tax: Ranges from 5% to 20% on payments made to non-residents, depending on the nature of the transaction

At Al Madani & Co., we ensure your business remains fully compliant with ZATCA regulations and provide complete tax and business registration advisory services in Saudi Arabia.

Foreign investors are not permitted to operate as sole proprietors in Saudi Arabia. The most common and approved legal structure for foreign-owned businesses is a Limited Liability Company (LLC).

Our team will guide you in selecting the most suitable company structure based on your business goals and compliance requirements in KSA.

Yes, having a registered office address in Saudi Arabia is mandatory for company formation. This official address is required for securing your Commercial Registration (CR), MISA license, and other government approvals. It serves as your business's legal location for all official correspondence and regulatory compliance.

In most cases, your physical presence is not required to complete the company setup in Saudi Arabia. Licensing, registrations, and incorporation steps can be handled remotely through a local legal representative.

However, to open a corporate bank account, the authorized signatory must be physically present in the Kingdom. This is typically the only step that requires travel.

Generally, no upfront deposit is required to open a business bank account in Saudi Arabia. However, requirements may vary depending on the bank’s internal policies, the nature of your business, and the initial capital structure of your company. Some banks may request a minimum balance or initial deposit as part of their account opening conditions.

Opening a corporate bank account in Saudi Arabia usually takes 5 to 15 business days. The duration depends on the chosen bank, the accuracy and completeness of submitted documents, and the verification process for both the company profile and the authorized signatory.