Opening a company in Saudi Arabia: locals, foreigners, freelancers and digital nomads

At a glance: LLC with no minimum capital after a MISA investment registration, 4 to 12 weeks to a working bank account, 20 percent corporate tax on foreign-owned profits and 2.5 percent zakat on Saudi and GCC shares, 15 percent VAT from SAR 375,000 turnover, no personal income tax, no digital nomad visa. Legal forms. Sole establishment (Mu'assasah Fardiyah): Saudi and GCC nationals only. Limited liability company (Sharikat Dhat Mas'uliyyah Mahdudah, LLC): one or more shareholders, no statutory minimum capital under the Companies Law in force since January 2023, though MISA sets minimums for some foreign-owned activities, from nothing for services to SAR 30 million (about 7 million euros) for wholly foreign-owned trading. Simplified joint stock company (SJSC): no minimum capital, used by start-ups. Registration. Foreign investors register with the Ministry of Investment (MISA) under the 2025 Investment Law (fees about SAR 2,000 plus a SAR 10,000 annual subscription, together about 2,800 euros), then file the articles and commercial registration (CR, about SAR 1,200 a year) with the Ministry of Commerce through the Saudi Business Center portal, then ZATCA, GOSI and Qiwa registrations and a bank account; Saudi nationals finish the CR online in a day. Foreign-owned LLC: 4 to 12 weeks, professional fees SAR 20,000 to 60,000, first-year total excluding capital about SAR 40,000 to 90,000 (9,000 to 21,000 euros). Taxes 2026. Corporate income tax 20 percent on the share of profit attributable to non-Saudi and non-GCC shareholders; zakat 2.5 percent of the zakat base on the Saudi and GCC share. Withholding tax on payments to non-residents: dividends 5 percent, interest 5 percent, royalties 15 percent, management fees 20 percent, most services 5 percent, reduced by some 55 treaties. VAT 15 percent, mandatory above SAR 375,000 (about 87,000 euros) of annual taxable supplies, voluntary above SAR 187,500. No personal income tax. Returns and payment within 120 days of year end. Freelancers and the self-employed. Saudi nationals obtain a free Freelance Certificate (Wathiqat al-'Amal al-Hurr) on the freelance.sa platform, valid one year; above SAR 375,000 turnover they register for VAT. Expatriates cannot freelance without an iqama from an employer or their own company, so a foreign consultant either incorporates a MISA-registered LLC or obtains Premium Residency, which allows self-employment without a sponsor. Social insurance is 21.5 percent of salary for Saudi employees and 2 percent for expatriates, plus the expat levy of SAR 800 a month (about 185 euros). Foreigners. 100 percent foreign ownership in most sectors under the Investment Law, with a negative list (oil exploration, some security activities, Haj and Umrah services, recruitment agencies). No Saudi partner or director is required, but a general manager with an iqama is needed for the CR and government portals. The founder must come for the residence permit and bank. Premium Residency: permanent for SAR 800,000 (about 185,000 euros) or SAR 100,000 a year; investor category from SAR 7 million; entrepreneur categories with approved investment of SAR 400,000 or SAR 15 million. Branch of a foreign company. A branch needs a MISA registration like a subsidiary, a commercial registration and a general manager resident in Saudi Arabia; the parent's incorporation papers, audited accounts and board resolution are attested at a Saudi embassy and translated into Arabic. Profits are taxed at 20 percent like the foreign share of an LLC, remittances to the head office carry 5 percent withholding, and the parent has unlimited liability. Digital nomads. No digital nomad visa and no remote-work residence category. The closest routes are the one-year multiple-entry tourist eVisa for about 60 nationalities (stays of up to 90 days, fee about SAR 300 plus insurance), and Premium Residency at SAR 100,000 a year. Remote work during a tourist stay has no legal basis; there is no personal income tax, and tax residence needs 183 days or a permanent home plus 30 days. Changed recently. Investment Law in force 11 February 2025 replacing the foreign investment licence with a registration; Commercial Register Law with a single national CR (April 2025); Premium Residency expanded with investor and entrepreneur categories (January 2024); Real Estate Transaction Tax law (April 2025); foreigners allowed to own property under the law effective January 2026. Figures checked October 2026 from the Ministry of Investment (MISA), the Ministry of Commerce and Saudi Business Center, ZATCA and the Premium Residency Center, plus Big Four tax summaries and Saudi law-firm guides; thresholds and fees change yearly. Confirm with a licensed adviser in Saudi Arabia before you file.