No, the physical presence of the owner is not required for the business setup process. The general manager would only be required to go to Saudi Arabia to establish his Iqama documentation.

Some sectors are subject to certain restrictions on foreign ownership, you can get in touch with our representative for further details.

100% foreign ownership is encouraged in Saudi and can be done via MISA licenses, offering operational flexibility throughout the Kingdom and enabling investors to establish companies with full foreign ownership.

MISA serves as a governmental entity dedicated to fostering global investment prospects and empowering international enterprises to extend their presence in the Kingdom of Saudi Arabia, allowing them the flexibility of complete foreign ownership.

It is possible if both licenses belong to the same category and share the same licensing type, Saudi Arabia does not permit to merge two different license types.

Saudi Arabia pesents a spectrum of flexible regulations and enticing incentives tailored to foreign investors in 4 Economic Cities, 5 Special Economic Zones, and 36 Industrial Cities. The specific benefits accorded hinge on the nature of business licenses and the type of economic activities pursued.

Foreigners in Saudi Arabia can establish businesses through entities like Limited Liability Companies (LLCs), Foreign branches, Representative Office, subject to certain regulations.

Saudi Arabia hosts branches of various international banks, such as Emirates NBD, First Abu Dhabi Bank, Deutsche Bank, HSBC, Standard Chartered Bank, BNP Paribas, and the Industrial and Commercial Bank of China. KSA has granted licenses to a total of 31 banks, comprising 11 domestic banks and 20 branches of foreign banks, as authorized by the Saudi Arabian Monetary Authority (SAMA). Prominent banks in the country include the Saudi National Bank, Al Rajhi Bank, and Samba Financial Group.

In Saudi Arabia, one should pay Income Tax if they come under certain categories. Resident capital, Natural Non-Saudi resident businesses, and Non-resident individuals engaging in business in Saudi Arabia are liable to pay Income Tax. Those generating taxable income from resources in Saudi Arabia, the natural gas investment sector and oil and hydrocarbon production companies also fall in this category.

The applicable tax rates are contingent upon the classification of each company. For Resident capital, Natural Non-Saudi resident businesses, and Non-resident individuals engaging in business in Saudi Arabia, the tax rate stands at 20%. Within the natural gas investment sector, the tax rate remains fixed at 20%. However, within oil and hydrocarbon production companies, the tax rate ranges between 50% and 85%, contingent upon the magnitude of capital investment.

Excise tax is a duty levied on manufactured goods that are generally harmful for human health or environment. Excise tax law imposes tax on Tobacco products, energy drinks, soft drinks, sweetened drinks & Electronic smoking devices and accessories.

Goods or categories of goods that fall under excise goods, have varying tax rates. Excise tax law imposes tax on Tobacco products, energy drinks, soft drinks, sweetened drinks & Electronic smoking devices and accessories. Each goods are levied tax rates as follows:

• Tobacco products (taxed at 100% of the retail price).
• Energy drinks (taxed at 100% of the retail price).
• Soft drinks (taxed at 50% of the retail price).
• Sweetened drinks (taxed at 50% of the retail price).

Any expenses related to upgrades and maintenance of each asset group within a given year will be considered deductible, as long as the total amount of such expenses does not surpass 4% of the remaining value of the asset group. In case expenses exceed the 4% threshold, the surplus will be added to the remaining value of the asset group and consumed over subsequent years.