Registering a company in Saudi Arabia

This country has a huge reserve of oil, gas. However, despite this, the government is also engaged in active development of other sectors, regularly develops methods to improve the economy, attract more capital from foreign investors. Thanks to these efforts, the policy in the country is well developed in many areas, such as energy, services, education and so on. Therefore, registering a company in Saudi Arabia is a potentially profitable solution.

Registering a company in Saudi Arabia: What are the benefits?

Any foreign investor can open a company in Saudi Arabia, as the jurisdiction has the following advantages:

  • beneficial, stable economic, political situation;
  • favorable location;
  • openness to foreign investors;
  • simple registration, support the activities of any enterprise;
  • high level of security in the state.

Also the opportunity to take advantage of favorable conditions that allow you to avoid double taxation.

What to open a company in Saudi Arabia and how to choose the form of ownership?

On the territory of this state can be formalized business of the following types:

  1. Private firm with limited liability. A popular form of ownership with a minimum capital of 500,000 rials.
  2. Joint Stock Company. A type of organization where the issue of shares is assumed, the opportunity to attract external financing is provided.

Any entrepreneur can also register a branch. This is the simplest form of ownership, which allows you to launch the work of the firm in the territory of this jurisdiction. In this case, a simplified registration process is used.

Saudi Arabia

State Taxation

The tax rate on income is 20% for each tax payer. Individuals of the state and the Gulf countries that are wholly owned by residents pay Islamic tax. The rate of this tax is 2.5%.

  • tax on rent is 5%;
  • 15% tax on dividends.

The tax rate on income from the use of natural gas is 30%. This rate may gradually increase.

The value added tax is considered an indirect tax. It is levied on any products, services, and is equal to 15%.

Opening a company in Saudi Arabia and obtaining citizenship

Foreign citizens can apply for citizenship in this state. There are several important conditions, and they must be met:

  • work at a local enterprise;
  • be the owner of a business registered in the country;
  • reside in the country for 10 years or more.

But the system that is used to assign certain points is calculated in the following way: to get the necessary number of points, it is required to have high qualifications or family ties in the country.

The kingdom is constantly expanding opportunities for people who want to obtain citizenship. And this is the right way out, allowing the economy to develop rapidly.

Fast business registration in Saudi Arabia

It is not very difficult to register a business in the Kingdom at the moment. Perhaps, if you perform this procedure on your own, there will be some difficulties. Therefore, to avoid these problems, we advise you to seek the help of our company's specialists.

When considering the question of creating a company in Saudi Arabia, we advise you to first consult with our specialists. They will calculate the necessary authorized capital, choose the optimal taxation system. In addition, they will develop a detailed plan of actions during the registration process.

Don't forget that the advice of a professional lawyer is considered very important. We will provide you with qualified recommendations and support you every step of the way.

Be sure to have a professional lawyer on your side.

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Maksym Stepanenko

Maksym Stepanenko

Managing Partner, Crystal Tax

International client projects since 2012: company structures, tax, immigration, DUNS and NCAGE. 50+ jurisdictions.

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