Guide to 100% Business Ownership in Saudi Arabia (2025)
For Muslims seeking Hijrah and business opportunities in Saudi Arabia, owning a company without a Saudi sponsor (Kafeel) has now become possible through Vision 2030 reforms. This guide by For His Sake outlines legitimate pathways to establish full foreign-owned businesses in the Kingdom.
Pathways to 100% Foreign Business Ownership
1. MISA Investor License (Ministry of Investment)
The primary pathway for expats to legally own a business in Saudi Arabia is through the MISA Foreign Investor License.
- Allows 100% foreign ownership in most sectors (tech, consulting, trading, etc.)
- Application through Invest Saudi Portal
- Requires proof of:
- Financial solvency
- Business plan aligned with Vision 2030
- Clean legal record
2. Branch Office of an Existing Company
If you already own a registered business in another country, opening a branch in Saudi Arabia is streamlined.
- Existing company must be at least 1 year old
- Requires audited financial statements
- Initial MISA license & legal setup fees: Approx SAR 12,000 - SAR 15,000
- Best suited for established businesses expanding into KSA
3. New Company Formation (No Existing Business)
If you don't have a registered business, you can still apply through MISA as a new investor. However,
- Business plan & feasibility study is critical
- Minimum capital requirements depend on sector (can range from SAR 100K to SAR 1M+)
- Professional guidance is highly recommended to ensure compliance
Need help with the setup? Book a consultation with For His Sake for a shariah-compliant business setup strategy.
Key Considerations for Business Owners
Multiple Businesses Under One Commercial Registration (CR)
- You can add multiple business activities under one CR, provided they fall within allowed combinations
- Example: Consulting + IT Services + Digital Marketing can be under a single CR
Taxation: 20% on Net Profits Only
- Saudi Arabia imposes 0% personal income tax
- Business profits are taxed at 20% corporate tax after allowable deductions
- Zakat applies to Saudi/GCC owned portions only
Illegal Practices to Avoid
- Name Lending (Tasattur): Operating a business under a Saudi citizen's name while managing it yourself is illegal
- Violations can lead to deportation, heavy fines, and permanent bans
Saudization Requirements
Depending on your business activity and size, you may be required to employ a certain percentage of Saudi nationals (Nitaqat Program).
- Small consulting firms may have minimal Saudization obligations
- Retail and service sectors have stricter quotas
Common Business Structures
| Structure Type | Ownership | Ideal For |
|---|---|---|
| LLC (Limited Liability) | 100% Foreign | Consulting, IT, Marketing, E-commerce |
| Joint Venture | Mixed | Sectors requiring local partnership |
| Branch of Foreign Co. | 100% Foreign | Established businesses expanding into KSA |
Summary
Saudi Arabia's investor-friendly reforms allow expats to own businesses with full legal rights. However, compliance with MISA guidelines, Saudization rules, and proper legal structure is essential. Avoid shortcuts like name-lending setups.
For His Sake provides personalized business setup services, ensuring your Hijrah is aligned with both legal and Islamic principles.
Ready to establish your business in Saudi Arabia? Our experienced consultants can help you navigate MISA licensing, legal compliance, and proper business setup to avoid common pitfalls.
Book a Business Setup Consultation →