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Gulf powerhouse with Vision 2030 economic diversification
Region
MIDDLE EAST
Corporate Tax
20%
Setup Time
3 weeks
Currency
SAR
Saudi Arabia, the Gulf's largest economy, is undergoing dramatic transformation under Vision 2030. The kingdom's company registration reforms and mega-project investments support business setup in an evolving environment.
With a population of 36 million, Saudi Arabia offers Gulf living with unique cultural requirements. Arabic is official, with English in business. The climate is hot desert.
Healthcare is good through public and private systems. Safety is excellent. The cost of living is moderate, with various subsidies.
Social liberalization is occurring but the kingdom remains conservative by Western standards.
Corporate tax rate stands at 20% (with 2.5% Zakat for Saudi/GCC-owned portions). No personal income tax exists. VAT applies at 15%.
The Saudi riyal is pegged to the US dollar. Vision 2030 drives massive diversification investment including NEOM, tourism, and entertainment. 100% foreign ownership is now permitted in most sectors.
Company registration through the Ministry of Commerce has been streamlined. LLCs are common, with 100% foreign ownership now possible. Various structures serve different purposes.
Company formation takes approximately 1-2 weeks. Minimum capital varies by activity. Annual compliance includes various filings and Saudization requirements.
Saudi Arabia's central bank has not established clear crypto license frameworks. Digital asset regulation is developing. The regulatory approach remains cautious.
Gambling is prohibited under Saudi law. No gambling license opportunities exist.
Cultural requirements and gender considerations affect certain operations. Saudization (workforce nationalization) requirements apply. The transformation creates both opportunity and navigational needs.
Banking access is available through Saudi and international banks. Professional services are well-developed.
Saudi Arabia suits businesses targeting the transformation investments, regional headquarters, and operations aligning with Vision 2030 priorities for their business setup.
Local: LLC
Local: JSC
Local: Branch
| Corporate Tax Rate | 20% |
| Personal Income Tax Rate | 0% |
| VAT / Sales Tax | 15% |
| Capital Gains Tax | 0% |
| Withholding Tax | 5% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | HIGH |
| Financial Privacy | MEDIUM |
| Currency Controls | SOME |
| Local Bank Account Required | Yes |
| Non-Resident Bank Account Allowed | No |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | Yes |
| MLRO Required | Yes |
| Compliance Officer Required | Yes |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $10,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF (in development) |
| Business Plan Required | Detailed business plan required with 3+ years projections |
| Personnel Required | Senior directors with extensive industry experience, AML Compliance Officer |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | No |
| Registry Access | SAMA supervised registry, not publicly accessible |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Saudi Central Bank (SAMA), Capital Market Authority (CMA) |
| Licensing Fee Details | Fees not publicly disclosed - determined on case-by-case basis by SAMA |
| Permitted Business Models | Payment Services Provider (limited crypto activities under SAMA Payment Services regulations) |
| Permitted Activities | Electronic money services, payment processing - cryptocurrency trading not formally licensed |
| Restricted Activities | Cryptocurrency exchange, custody, trading - not formally licensed; cryptocurrency not recognized as legal tender |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | No |
| App Store Listing Allowed | No |
| Crypto Custody Allowed | No |
All forms of gambling including casinos, sports betting, lotteries, poker, online gambling - strictly prohibited under Sharia law with severe penalties
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $10,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant |
| Business Plan Required | Comprehensive business plan with financial projections required |
| Personnel Required | CEO, CFO, Compliance Officer, AML Officer, adequate staff with fit and proper qualifications |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | SAMA Licensed Payment Service Providers list - https://sama.gov.sa |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Saudi Central Bank (SAMA) |
| Licensing Fee Details | Application fees vary by license type - Micro PI: SAR 1M capital; Micro EMI: SAR 2M capital; Major EMI: SAR 10M capital; Major PI: SAR 5M capital |
| Permitted Business Models | Payment Institution (PI), Electronic Money Institution (EMI) |
| Permitted Activities | Payment processing, electronic wallets, money remittance, payment initiation services |
| Restricted Activities | Banking without SAMA banking license, insurance without Insurance Authority license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |