IMC has the experience and expertise to advice customers on the suitable company type taking in to account the laws of the land and the unique customer’s needs. We have the experience having handled different industries and geographies across the world. We understand finance and the legal framework required to handle a company’s operations. We will advise on the percentage of shareholding allowed for foreigners, and the rights which go with that percentage and other such business matters. IMC has been operating in GCC for over 10 years. With a partnership in Saudi Arabia, IMC is closer to the customer with a better understanding of the Saudi ArabiaCompanyLaws and Practices.
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%\
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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|
Having decided on the type and structure, we can assist in every step of the way starting from drafting the incorporation documents, listing out the documents required to be filed, documents to be notarized and other formalities. We can advise on the licenses required for specific industries. If a local attorney or a CPA need to be hired, we will handle this. We will coordinate filing the applications, getting the name approved and all the steps required. We can also assist in opening the bank account for the company.