Melqart · Saudi Arabia Formation
Company Formation in Saudi Arabia
Vision 2030 MISA Registration 100% Foreign Ownership 0% Personal Tax GCC's Largest Economy

Saudi Arabia is undergoing the most ambitious economic transformation in its history. Under Vision 2030, the Kingdom has opened virtually every sector to foreign investors — with 100% ownership now available through a MISA registration. Melqart guides you through every step of Saudi market entry.

100%
Foreign ownership via MISA
0%
Personal income tax
5%
Corporate tax in Special Economic Zones
6–12
Weeks typical formation timeline

The Opportunity

The GCC's Largest Economy.Now Open to You.

Saudi Arabia's GDP exceeds USD 1 trillion — the largest in the Arab world. Under Vision 2030, the government has committed hundreds of billions to economic diversification, creating massive demand for international expertise, technology, services, and infrastructure. Non-oil activities grew 4.6% year-on-year in 2025 — the diversification narrative is now in the national accounts, not just press releases.

Over 14,300 foreign investment licences were issued in 2024 — a 67% increase year-on-year. This is the most open Saudi Arabia has ever been to international business — and the window will not stay this wide forever.

100% foreign ownership via MISA — no local sponsor required in most sectors
Access to the GCC's largest consumer market and economy
780+ regional HQs of global companies now based in Riyadh
Massive government infrastructure spend — NEOM, Red Sea Project, Qiddiya
5% corporate tax rate in Special Economic Zones (SEZs)

Key Consideration

Saudization (Nitaqat).Plan for It From Day One.

Saudi Arabia's Nitaqat programme requires foreign-owned companies to employ a minimum percentage of Saudi nationals. The quota varies by sector, company size, and activity. Compliance directly affects your ability to issue and renew work permits for all foreign employees — including your General Manager.

Melqart builds your Saudization compliance plan into the formation process so your hiring strategy is structured correctly before you start operations.

Critical: Non-compliance with Nitaqat can freeze your ability to issue or renew work permits for ALL foreign employees. Address this from day one — not month four.

Corporate Tax — What to Know

20% corporate income tax on foreign-owned share of profits
15% VAT — mandatory registration above SAR 375,000 annual turnover
SEZ companies: 5% flat corporate tax rate — activity restrictions apply
No personal income tax for individuals in Saudi Arabia

Evaluating Saudi Arabia for your business?

Melqart provides a free market entry assessment — no commitment required.
Get a Free Assessment →

Entity Types

Choosing the RightLegal Structure.

Saudi Arabia offers four main paths for foreign investors. Your choice determines governance requirements, liability exposure, capital commitments, and long-term scalability. Melqart advises on the right structure before any paperwork begins.

Cost guidance: All figures are indicative ranges based on publicly available 2026 information. Actual costs vary by activity, capital, and professional fees. Melqart provides a detailed cost breakdown as part of your free consultation.

Limited Liability Company (LLC)

Most common structure for foreign investors

Most Popular

The go-to structure for most foreign investors in Saudi Arabia. Allows 100% foreign ownership via MISA registration across most commercial, professional, and industrial sectors. Minimum 1 shareholder. The most flexible structure for SMEs, consultancies, and service businesses entering the Saudi market.

MISA Licence
SAR 2k–11k*
First Year*
SAR 100k–250k+
Timeline
6–12 weeks
Min. Capital
SAR 100,000*
Ownership
100% foreign
CR + Fees
SAR 5k–12k*
100% foreign ownership Full commercial activity Investor visa eligibility

Choose LLC if: You're establishing a permanent, commercially active Saudi presence with full ownership and operational flexibility.

* First year total includes MISA licence, CR, municipality, Chamber, advisory, and initial visa costs. Working capital and office lease are additional.

Branch of a Foreign Company

For established companies with a Saudi contract

Established Companies

A registered presence of your existing foreign company in Saudi Arabia — operating under the parent company's name and legal identity. Best for companies executing a specific Saudi contract or project, or MNCs wanting fast market presence without incorporating a new local entity.

MISA Licence
SAR 2k–11k*
Min. Capital
SAR 25,000
Timeline
4–8 weeks
Ownership
100% parent co.
Liability
Parent liable
Local Equity
Cannot add later
Fast market entry Same brand identity Lower initial cost

Choose Branch if: You have an existing foreign company and a specific Saudi contract to execute — and won't need local partners or Saudi equity later.

* A branch cannot add local Saudi investors later. If localisation is possible in your growth path, an LLC is the safer long-term choice.

Entrepreneur Licence

Early-stage foreign startups — MISA programme

Startups Only

Launched specifically for early-stage foreign startups. 100% foreign ownership at the lowest possible cost — approximately SAR 2,000/year. Over 550 foreign startups licensed by mid-2025, a 118% increase year-on-year. Activity restrictions apply — designed for genuine early-stage businesses, not established companies.

Annual Cost
~SAR 2,000
Ownership
100% foreign
Timeline
Days (digital)
Restrictions
Activity limited
Best For
Early startups
Scaling
Converts to LLC
Lowest cost entry Fast digital process Converts to LLC later

Choose Entrepreneur Licence if: You're an early-stage foreign startup testing the Saudi market before committing to a full LLC structure.

Special Economic Zone (SEZ)

Qualifying activities in designated zones

Tax Advantaged

Saudi Arabia's SEZs offer a 5% flat corporate tax rate versus the standard 20% — plus customs duty exemptions. SEZs are active in Riyadh, King Abdullah Economic City, Jazan, Ras Al-Khair, and Cloud Computing zones. The 15% tax differential often outweighs all other structuring decisions combined.

Corp. Tax
5% flat rate
Vs Standard
20% (save 15%)
Customs
Duty exemptions
Ownership
100% foreign
Key Zones
Riyadh · KAEC
Key Sectors
Tech · Logistics
5% corporate tax Customs duty exemptions Government incentives

Consider SEZ if: Your activity qualifies — the 15% tax differential often outweighs all other structuring decisions combined.

* SEZ eligibility is activity-specific. Melqart assesses eligibility as part of your initial consultation before any structure is recommended.

Not sure which structure fits your Saudi plans?

We assess your activity, growth plans, and SEZ eligibility — then give you a clear recommendation.
Get Structure Advice →

The Formation Process

A Precise Sequence.We Manage Every Step.

Saudi company formation follows a strictly sequenced multi-agency process. Every step builds on the one before — delays typically trace to incorrect activity codes, incomplete documents, or mismatched information across registrations.

Most Saudi companies are operational within 10–14 weeks of engaging Melqart. The process begins with a free consultation where we map your activity codes, confirm SEZ eligibility, and give you a clear cost breakdown before anything is filed.

Start the Process →
01
MISA Registration

Activity code mapping, entity selection, document preparation and legalisation. MISA registration completed via the Invest Saudi platform — days for simple cases, 2–6 weeks for complex activities.

Weeks 1–6
02
Commercial Registration (CR)

Company registered with the Ministry of Commerce. Trade name reserved, Articles of Association drafted in Arabic, CR number issued. All fields must exactly match the MISA registration.

Weeks 2–4
03
Post-Registration Activation

Registration with ZATCA (tax), GOSI (social insurance), Chamber of Commerce, and activation of Qiwa and Muqeem labour portals. Office lease uploaded to the Ejar platform.

Weeks 4–8
04
Bank Account & Investor Visa

Corporate bank account submitted to Al Rajhi, SNB, or SABB. Investor visa and Iqama processed for the General Manager. Melqart coordinates banking pre-approval in parallel with registration steps.

Weeks 6–12
Ejar Lease — the most common delay: A registered office lease on the Ejar platform is required before labour files can be activated. Melqart ensures this is in place before any post-registration steps begin.

Ready to enter the Saudi market?

Most Saudi companies are operational within 10–14 weeks of engaging Melqart.
Start the Process →

Start Your Saudi Company

Planning to Set Upin Saudi Arabia?

Tell us about your business — activity, team size, and timeline — and a Melqart advisor will come back within 24 hours with a specific structure recommendation, SEZ eligibility assessment, and cost breakdown. No paperwork, no commitment.

Free market entry and structure assessment
SEZ eligibility check included — no extra charge
Saudization compliance plan built in from day one
Detailed cost breakdown before you commit to anything
Response within 24 hours · Licensed by MOIC · CR No. 84701-1