Limited liability companySaudi Arabia
What it takes to form, own and run a private limited company 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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A limited liability company is a company incorporated by one or more natural or legal persons.
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A limited liability company shall be managed by one manager, or more, appointed from among the partners or others.
The registry’s and the law’s own pages do not mention it.
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1200 for the commercial registration 500 for publication fees 15% VAT.
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The provisions of the Income Tax Law apply to resident capital companies with respect to the shares owned by non-Saudi partners, whether such partners are natural or legal persons, resident or non-resident.
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 Limited liability company.
Own it
Who may own and run it
- Directors
- At least 1
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A limited liability company shall be managed by one manager, or more, appointed from among the partners or others.
- Shareholders
- At least 1 · a company may be one
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A limited liability company is a company incorporated by one or more natural or legal persons.
- Members
- At least 1 · one person may form it alone
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This type of company can be founded by one or more individuals or entities, with its liability separate from the personal financial liability of its partners or owners.
- 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 1,200
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1200 for a limited liability company
- 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 required
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The provision stipulated in Article 18 of this Law relating to the appointment of an auditor shall not apply to micro and small companies
- Audit
- Micro and small companies are exempt from appointing an auditor (Art 19), except where the articles require one, it is listed, issues debt instruments or preferred stock, is a foreign company or is in a group with a larger company; criteria: two of income and assets each not above SAR 10 million, workforce not above 49
Important dates
When each obligation falls due, as the authority states it.
- Financial statements prepared to endorsed accounting standards and filed electronically
- 6 months after the end of the accounting period
With Ministry of Commerce (Qawaem platform)
The Ministry's notice names the simplified, simplified joint-stock, limited liability, joint venture and limited partnership forms.
- General assembly of partners
- 6 months after the end of the accounting period
Art 165(2): at least once a year during the six months following the fiscal year end.
What is public
Not in our records What the register shows the public is not in our records for the Limited liability company.
Tax
Tax on profit
How this company type is taxed, which can differ from its place’s headline rate.
Varies
Split by ownership: the share held by Saudi (and GCC-treated-as-Saudi) partners is a zakat base charged at 2.5% a year (Zakat Implementing Regulations, Arts 2 and 15); the share held by non-Saudi partners 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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The provisions of the Income Tax Law apply to resident capital companies with respect to the shares owned by non-Saudi partners, whether such partners are natural or legal persons, resident or non-resident.
- CFC rules in Saudi Arabia
- Not in our records
Close it
Closing it
The other end, which most guides leave out.
- Route
- Dissolution by the partners' or shareholders' agreement (or on expiry of its term or a final judgment), after the managers or board certify that assets cover debts (Art. 242); liquidation by a liquidator, ending on approval of his report and registration of the end of liquidation in the Commercial Register, after which the company is struck off (Companies Law, Part 12, Arts. 242-257).
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b) Agreement of the partners or shareholders to dissolve the company.
- Statutory fee
- Not in our records
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
- Private limited companyDerived our grouping, the same words in every country
- Name in law
- Limited liability company
- ISO 20275 code
- TTE8Secondary GLEIF, Entity Legal Forms code list