Saudi Arabia has set out to become a pioneering and successful global model of excellence on all fronts with its elaborate Vision 2030 plans. Years later, the Kingdom presents itself as a nurturing culture for young businesses and expanding giants.
Foreigners have the option to establish businesses under the Saudi Companies Law. An absence of currency exchange restrictions is a relief, and MISA (Ministry of Investment of Saudi Arabia) offers a range of temptations. The Ministry offers full ownership of property and companies in certain industries, as well as lower minimum capital requirements. Few restrictions on the type of work you can do in the Kingdom exist. Oil exploration, weapon manufacturing, and Hajj-related tourist orientation services are some examples of what Saudi Arabia restricts on foreign investors.
The incorporation of a foreign-owned LLC in the Kingdom requires an investment license and a CR (commercial registration). Local experts can help you with the paperwork in MISA and in the Ministry of Commerce. The incorporation process involves registration with a number of Saudi governmental authorities after obtaining the required investment license. These governmental authorities include the Labor Office, Municipality, and GOSI (General Authority for Social Insurance), among others.
Saudi Arabia imposes income taxes on defined persons who pursue business within the Kingdom. The other type of tax is Zakat, valued at 2.5% of residual Hijri year-to-year wealth. GAZT (General Authority for Zakat and Tax) administers Zakat and tax liabilities. Businesses forming in select developing economic cities are subject to certain tax incentives.
Saudization might be kept in mind, and a series of Saudi considerations must take place, including WPS (Wage Protection System), HR, and immigration