Saudi Arabia, officially known as the Kingdom of Saudi Arabia, is the largest Arab state in Western Asia. It is bordered by Jordan and Iraq on the north, Kuwait, Qatar, Bahrain and the United Arab Emirates on the east, Oman and Yemen on the south. With a total area of 2,149,690 sq. km accounting for 80 per cent of the Arabian Peninsula, the Kingdom of Saudi Arabia (KSA) is the largest Arab state in Western Asia, with a, population of 30.6 million in 2014. The country has a very youthful demographic profile with a median age of 26.4 years.
Oil revenues account for about 90 percent of export earnings and about 80 percent of government revenues. As part of its eﬀort to attract foreign investment and diversify the economy, Saudi Arabia acceded to the WTO in 2005 after many years of negotiations. Saudi Arabia is sitting on a land with an abundant wealth of oil. It has the world’s second largest oil reserves and oil accounts for more than 90% of its export’s earnings and 70% of government revenues. Read further to know more on the company registration procedures in Saudi Arabia.
The Saudi Arabian General Investment Authority (SAGIA) is the foreign investment company registration license provider for the Kingdom.
100% foreign investment allowed in service sector. However, trading and retail activities is reserved for Saudi National and Saudi owned entity only.
* SAGIA may prescribe additional requirements
Service Company taxed @20%
Saudi Owned Local companies taxed @2%\
There is no personal income tax on income earned by individual and employees. However, there are three type of taxes levied on the Companies based on the shareholding structures:
Where a company is owned by both Saudi and non-Saudi interests, the portion of taxable income attributable to the non-Saudi interest is subject to Corporate tax, and the Saudi share goes into the basis on which Zakat is assessed.
Basis for Corporate Taxation:
Withholding tax rates
|Type||Limited Liability Company (WLL)|
|Under Saudi Law, Foreigners Can own||100% (in certain activities) subject of FSI approval and manufacturing / trading requires local national participation|
|Share Capital||SR 500,000|
|Memorandum & Article of Association||Yes|
|Can the Entity hire Expatriate in Saudi||Yes|
|Saudi Resident Secretary Required||Yes|
|Statutory Audit Required||Yes|
|How Long to open corporate Bank Account||4 Days|
|Timeframe for Incorporation||6 Months|
|Annual Return||Must be Filed|
|Annual Tax||Must be filed|
|Access to Saudi Double Tax Treaties||Yes|
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