Business Setup

How to Start a Company in Saudi Arabia (2026 Guide)

How foreign and local investors set up in the Kingdom — MISA licensing, incorporation, tax, ZATCA and Saudization.

By Omega Global Editorial·Updated May 2026·8 min read

Get a MISA investment licence

Foreign investors begin with a licence from the Ministry of Investment (MISA), which now permits 100% foreign ownership across many activities. The licence type depends on your sector.

Incorporate and register

After licensing you obtain commercial registration (CR), draft articles, register with the Chamber of Commerce and complete municipality and labour registrations.

Consider a Regional HQ

If you're a multinational, the RHQ program may be essential: it's required to win government contracts and grants 30 years of 0% corporate income and withholding tax, subject to economic-substance conditions.

Tax, zakat and ZATCA

Saudi Arabia applies 20% corporate income tax on non-Saudi/GCC ownership and 2.5% zakat on Saudi/GCC ownership, plus 15% VAT. Businesses must also comply with ZATCA e-invoicing (Fatoorah).

Saudization (Nitaqat)

Companies must meet Saudization quotas under the Nitaqat system, hiring a minimum percentage of Saudi nationals based on size and sector.

Frequently asked questions

Can foreigners own 100% in Saudi Arabia?

Yes — with a MISA investment licence, full foreign ownership is available across many sectors.

What is the RHQ program?

It requires multinationals to base their regional HQ in the Kingdom to win government contracts, offering 30 years of 0% income and withholding tax in return.

About the author

Omega Global Editorial · Editorial Team

Practitioners from Omega Global's Technology, Marketing, Finance and Construction practices, writing on doing business across Saudi Arabia, the UAE and Oman.

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