Legislation of Saudi Arabia

List of laws and regulations

Companies Law

Companies

Insolvency Law

Insolvency

Commercial Papers Law

Commercial Papers

The Law of Trade Names

Trade Names

The Law of Commercial Register

Commercial Register

Anti-Money Laundering Law

AML

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Tax treaties entered

Albania

Algeria

Austria

Azerbaijan

Bangladesh

Belarus

Bulgaria

China

Cyprus

Czech Republic

Egypt

Ethiopia

France

Gabon

Georgia

Greece

Hong Kong

Hungary

India

Ireland

Italy

Japan

Jordan

Kazakhstan

Kosovo

Kyrgyzstan

Latvia

Luxembourg

Malaysia

Malta

Mexico

Morocco

Netherlands

North Macedonia

Pakistan

Poland

Portugal

Romania

Russia

Singapore

South Africa

South Korea

Spain

Sweden

Switzerland

Syria

Taiwan

Tajikistan

Tunisia

Turkey

Turkmenistan

Ukraine

United Arab Emirates

United Kingdom

Uzbekistan

Venezuela

Vietnam

Tax Exchange Information Agreement (TIEA)

No

List of state regulatory authorities

Majlis al-Shura (Advisory Council)

https://www.shura.gov.sa/wps/wcm/connect/ShuraEn/internet/Home/

Ministry of Justice

https://www.moj.gov.sa/

Ministry of Finance

https://www.mof.gov.sa/en/Pages/default.aspx

Ministry of Investment

https://misa.gov.sa/

Ministry of Trade

https://mc.gov.sa/en/Pages/default.aspx

Ministry of Foreign Affairs

https://www.mofa.gov.sa/en/Pages/default.aspx

Ministry of Human Resources and Social Development

https://www.hrsd.gov.sa/en

Ministry of Hajj

https://www.haj.gov.sa/

General Organization for Social Insurance

https://www.gosi.gov.sa/en

General Directorate of Zakat and Taxes

https://zatca.gov.sa/en/Pages/default.aspx

MERAS

https://meras-ksa.com/

Muqeem

https://www.elm.sa/en/e-services/pages/muqeem.aspx

Corporate info

Legal system

The legal system is based on Shariah, Islamic law

Types of entity

- General partnership;
- Limited partnership;
- Joint-stock company;
- Simplified joint-stock company;
- Limited liability company

Shelf companies permitted

No

Incorporation timescale for a new company

6 weeks

Company suffix

The name of the company should contain an indication of its legal form - Limited liability company, LLC

Sensitive words

The name of the company must not include the name of an individual, a title (lawyer, prince, sheikh, father, etc.), the type of activity of the company, the name of a non-Arab country or city; all names containing religious connotations are also prohibited

Cyrillic alphabet permitted in company name

No

Local registered office

Yes

Local registered agent

Yes

Information to be kept at the registered office

Corporate documents, reporting

Seal required, type of seal

Seal is required

Redomiciliation (to, from) permitted

Not permitted

Director and secretary

Minimum number of directors

1

Residency requirements for directors

No

Corporate directors permitted

No

Directors’ meetings/frequency/location

No restrictions

Disclosure to local agent

Yes

Disclosure to public

No

Company secretary required

No

Residency requirements for a secretary

No

Qualified secretary required

No

Corporate secretary permitted

No

Shareholder and beneficiary

Minimum number of shareholders

1

Residency requirements for shareholders

No

Corporate shareholder permitted

Yes

Meetings/frequency/location

No restrictions

Disclosure to local agent

Yes

Disclosure to public

No

Beneficiary info disclosure to

No

Shares and share capital

Minimum authorized share capital

Not established

Minimum issued share capital

Not established

Minimum paid share capital

Not established

Authorized capital payment deadlines

Not established

Issued capital payment deadlines

Not established

Standard currency

SAR

Standard authorized share capital

500 000 SAR

Standard par value of shares

1 SAR

Shares with no par value permitted

No

Bearer shares permitted

No

Taxes

Personal tax

No

Сorporate tax

20%

Corporate tax (in detail)

Legal entities are also required to pay, on an annual basis, zakat (a mandatory religious tax in Islamic law, which is levied at a rate of 2.5% on the total amount of the taxpayer's capital resources held for more than 12 months and income not invested in fixed assets)

Capital gains tax

20%

Capital gains tax. Details

Regular rate

VAT

15%

VAT. Details

All goods or services supplied to Saudi Arabia are subject to VAT at 15% unless they are labeled as VAT exempt or zero-rated

Withholding tax

5% (dividend), 5% (interest), 15% (royalty)

Other taxes

Social Security Tax, Real Estate Transaction Tax (RETT), White Land Tax (WLT)

Exchange control

No

Government fee

Yes

Stamp duty

No

Accounts

Requirement to prepare accounts

No

Requirement to file accounts

No

Publicly accessible accounts

No

Requirement to file Annual Return

—

Publicly accessible Annual Return

No

Audit required

No

General information shortly

Location

Largest state on the Arabian Peninsula

Total area

2 149 690 sq. km

Population

35 218 169 (2021)

Capital

Riyadh

National currency

Saudi riyal

Conditional reduction of currency

SAR

Against USD

0,27 (2024)

Climate, average max and min t°

The climate is very arid. The Arabian Peninsula is one of the few places in the world where summer temperatures consistently exceed 50 °C. Snow falls only in the Jizan Mountains in the west of the country, and then not every year

Time difference from Moscow

No

Dialing code

+966

State language

Arabic

Ethnic groups

The indigenous population is Saudi Arabian, 38.3% are immigrants

Literacy rate

94,7 (2019)

History

—

Credit rating

A-

Government type

Absolute theocratic monarchy

Executive branch

Executive - Council of Ministers consisting of the Prime Minister, the First Deputy Prime Minister and 20 ministers (appointed by the King)

Legislative branch

Legislative power - analog of parliament - Consultative Assembly (Majlis al-Shura), consisting of 150 members (appointed by the King for 4 years)

Judicial branch

The judiciary is a system of religious courts. Judges are appointed by the King upon nomination by the Supreme Judicial Council. The Supreme Judicial Council is appointed by the King and consists of 12 members

Unemployment

5,1 (2023)

GDP per capita rank

38 (2017, World Bank)

Corruption perceptions index rank

Corruption Perception Index - 52 (2023)

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Banks of Saudi Arabia

Al Rajhi Bank

3 500

N/A

Alinma Bank

3 500

N/A

Arab National Bank

3 500

N/A

Bank Aljazira (BAJ)

3 500

N/A

Riyad Bank

3 500

N/A

Qatar National Bank

3 500

N/A

Banque Saudi Fransi

3 500

N/A

Bank Albilad

3 500

N/A

Saudi Alawwal Bank (SAB)

3 500

N/A

Industrial and Commercial Bank of China (ICBC)

3 500

N/A

The Saudi Investment Bank (SAIB)

3 500

N/A

Saudi National Bank (SNB)

3 500

N/A