Saudi Arabia's Vision 2030 reforms have made it markedly easier for foreign investors to establish a presence, but the process still runs through MISA (the Ministry of Investment, formerly SAGIA), and the requirements differ meaningfully depending on which license type you need. We advise on the full formation pathway so your entity is structured correctly the first time.
Current as of 2026. Rules like these change — we confirm specifics at the time of engagement.
100% foreign ownership is generally permitted, and minimum capital requirements have been largely waived for many service sectors to encourage smaller investors. The main requirement is a parent company in your home country with proven experience in the activity you're bringing to Saudi Arabia — MISA reviews this closely.
For 100% foreign ownership of a trading company, your parent company must operate under the same name and ownership in at least three countries outside Saudi Arabia, with active commercial registrations in each, attested by the Saudi Embassy or Consulate. This license also carries a minimum capital requirement of SAR 30 million and an investment commitment of SAR 200–300 million over five years, alongside Saudization (Saudi hiring) requirements.
A branch of a foreign parent company can be licensed in Saudi Arabia, but this route is typically tied to a specific government contract or project rather than open-ended commercial activity.
Saudi Arabia runs a dual system: the foreign-owned share of a company's profit is taxed at 20% corporate income tax, while Saudi and GCC shareholders pay 2.5% Zakat on their share instead. Mixed-ownership companies pay both, proportionate to the ownership split. VAT is 15%, and all businesses register with ZATCA (the Zakat, Tax and Customs Authority).
LISORBIS advises on strategy and structuring for Saudi Arabia. Filings, registrations, and any step requiring local admission to practice are carried out by a locally authorized representative or licensed professional in Saudi Arabia, working alongside our team.
We have a dedicated advisory track for exactly this corridor.
View Pakistan – Saudi Arabia Advisory