Limited Liability Company Formation Saudi Arabia

Choosing the right business structure for your company is an important step while establishing a business in Saudi Arabia. The chosen company should have an in-depth structure permitting adaptability, flexibility and growth in the long run. It is also essential that your company come up with long term business growth plans.

The most common form of legal entity in Saudi Arabia is the Limited Liability Company (LLC) that can be registered by a single shareholder. This business form may have 50 shareholders in one go. Generally, no capital requirements arise for this form of business, but may have capital requirement depending on the business activity, imposed by the local authorities.

An LLC in Saudi Arabia is a common and preferred business structure providing liability protection and management flexibility. The financial risk of the members is limited to their investment, making it quite attractive to local and foreign investors. Besides, the simplified tax process adds to its appeal among the new entrepreneurs.

The 100% foreign ownership is permitted in the Limited Liability Companies. Such an ownership allows complete freedom without any restrictions on foreign ownership. There is no need for a local partner and the foreign investor can have complete control over his business. There are no limitations, free decision making and almost boundless opportunities under the 100 % ownership companies for unlocking all your business capabilities.

For the Limited Liability Companies, under the 100% foreign ownership scheme, the Saudi government offers several incentives such as tax breaks, subsidies, and support in acquiring industrial land.  The scheme eases the burden of tax payments with reduced tax rates and tax exemptions in certain key sectors like oil and gas, technology, etc. Tax benefits are permitted in corporate tax in sectors like agriculture, manufacturing, and renewable energy.