Sole proprietorship establishmentSaudi Arabia
What it takes to form, own and run a sole trader in Saudi Arabia, and how its profit is taxed. Each figure links to the page it was read from.
This company type
At a glance
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The owner must not have an active commercial registration for a sole proprietorship.
The registry’s and the law’s own pages do not mention it.
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Resident Saudi person, who practices an Activity under a license within the Kingdom.
Form it
Who registers it
- Registry
- Formed without visiting
- Not stated
The registry’s and the law’s own pages do not mention it.
- Formed online
- Yes
What it takes to form
Not in our records A notary, A resident director, Paying up the capital: none of these is in our records for the establishment.
Own it
Who may own and run it
- Directors
- Does not apply
- Shareholders
- Does not apply
- Members
- At least 1 · at most 1 · one person may form it alone
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The owner must not have an active commercial registration for a sole proprietorship.
- A local company secretary
- Not stated
The registry’s and the law’s own pages do not mention it.
- A local registered agent
- Not stated
The registry’s and the law’s own pages do not mention it.
Each year, at the registry
- Annual registry fee
- SAR 500
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500 for annual confirmation
- Accounts on the public record
- Not stated
The registry’s and the law’s own pages do not mention it.
- Audit for a small company
- Not stated
The registry’s and the law’s own pages do not mention it.
- Audit
- Not in our records
Important dates
When each obligation falls due, as the authority states it.
Not in our records No dates for the establishment are in our records.
What is public
Not in our records What the register shows the public is not in our records for the establishment.
Tax
Tax on profit
How this company type is taxed, which can differ from its place’s headline rate.
Varies
A resident Saudi person practising an activity under licence is a zakat payer at 2.5% of the zakat base (Zakat Implementing Regulations Arts 2, 15); a non-Saudi owner falls under the Income Tax Law. Rechecked 21 Oct 2026 in Claude in Chrome: ZATCA FAQ_148 now returns 'No results found'; the IncomeTax.aspx page and the Comprehensive Guide to the Implementing Rules (ExciseTax2.aspx) state the scope of the Income Tax Law but no rate, so the rate is not entered.
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Resident Saudi person, who practices an Activity under a license within the Kingdom.
- CFC rules in Saudi Arabia
- Not in our records
Close it
Closing it
The other end, which most guides leave out.
Not in our records Route, Statutory fee: none of these is in our records for the establishment.
Every business in Saudi Arabia
VAT
- Standard rate
- 15%
VAT was introduced on 1 January 2018 at 5% and the standard rate was raised to 15% on 1 July 2020.
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In the Kingdom of Saudi Arabia, VAT-registered individuals must charge VAT at a standard rate of 15%, where applicable.
- Other rates
- Not stated
- Registration threshold
- SAR 375,000
annual taxable supplies; previous 12 months, or the next 12 months where supplies are expected to exceed it
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Individuals whose annual revenues exceed SAR 375,000. Registration is optional for those whose annual revenues exceed SAR 187,500 and less than SAR 375,000.
- Voluntary registration
- Yes
A resident person whose taxable supplies or taxable expenses are at least SAR 187,500 over twelve months, or are expected to be, may register voluntarily.
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Individuals whose annual revenues exceed SAR 375,000. Registration is optional for those whose annual revenues exceed SAR 187,500 and less than SAR 375,000.
- A foreign company
- Registers from its first taxable supply; no local representative required
A non-resident person obligated to pay tax on supplies made or received in the Kingdom applies to register within 30 days of the first supply on which it was obligated to pay tax, whatever the value of the supplies. It may apply itself or through a tax representative approved by the Authority, whose particulars must be listed on the application.
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A Nonresident Person who is not registered with the Authority but is obligated to pay Tax on Supplies made or received by that Person in the Kingdom must apply to the Authority for registration within thirty (30) days of the first Supply on which that Person was obligated to pay Tax.
- Returns filed
- Quarterly
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For Taxpayers whose annual value of Taxable Supplies exceeds forty million (40,000,000) SAR during the previous twelve months, the Tax Period shall be monthly.
- Tax authority
- Registration page read 2026-10-22
Payment and banking services
1 service names Saudi Arabia on its own list: Paysera. Each provider, and what a listing means.
Reference
Its name and code
- Kind
- Sole traderDerived our grouping, the same words in every country
- Name in law
- Sole proprietorship (establishment)
- Identifier
- SA-SOLE-ESTABLISHMENTA form ISO 20275 does not list.