Top 10 Questions About Entering the Saudi Market (FAQ)
1. What are the main steps to establish a company in Saudi Arabia?
The process includes selecting the legal structure, reserving a company name, obtaining MISA (Ministry of Investment Saudi Arabia) approval, registering with the Chamber of Commerce, and completing post-licensing formalities such as opening a bank account and registering for taxes.
2. How long does it take to complete the setup?
Typical timelines range from 6 to 10 weeks, depending on the company type, documentation readiness, and responsiveness of government authorities.
3. What documents are required for registration?
Key documents include the parent company’s incorporation certificate, board resolution, power of attorney, audited financial statements, and identification documents for authorized representatives.
4. Can a foreign company own 100% of a Saudi entity?
Yes, in most sectors full foreign ownership is permitted under MISA regulations, though some industries may require a local partner or specific licensing conditions.
5. What is a Nominee General Manager (GM) and why is it needed?
A Nominee GM is a locally registered representative authorized to act on behalf of the company during setup. This role ensures compliance and enables operational readiness before appointing a permanent GM.
6. What are the main taxes applicable to foreign-owned companies?
Corporate income tax (20%), withholding tax on certain payments, and VAT (15%) apply. Zakat is applicable to Saudi or GCC-owned shares.
7. What is Saudization and how does it affect hiring?
Saudization (Nitaqat) mandates a minimum percentage of Saudi nationals in the workforce. The required ratio varies by sector and company size.
8. What are the key compliance obligations after setup?
Companies must maintain valid licenses, file annual tax returns, renew visas and iqamas, and comply with labor and social insurance regulations.
9. What are common mistakes foreign investors make?
Frequent issues include incomplete documentation, misunderstanding Saudization requirements, and delays in appointing an authorized signatory.
10. How does Integer add value to market entry?
Integer provides end-to-end support—from licensing and representation to compliance and HR advisory—ensuring a smooth, compliant, and efficient market entry.
Without a registered Interim GM or Authorised Signatory, your company cannot operate.
Integer | www.integer15.com | info@integer15.com | +971 4501 2345
Integer15 is a British-owned, managed, and operated firm headquartered in Riyadh, with a footprint that extends across the GCC. We specialize exclusively in General Manager, Director, and Company Secretarial services, offering businesses the executive leadership and governance support needed to succeed in this dynamic region.
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