# Saudi Arabia Company Setup, Zakat, Tax & VAT

> Foreign investors set up in Saudi Arabia with an investment licence from the Ministry of Investment (MISA), followed by commercial registration. Saudi and GCC shareholders' share of the business pays zakat (2.5% of the zakat base) while foreign shareholders' share pays 20% corporate income tax. VAT is 15%, with registration above SAR 375,000, and ZATCA's e-invoicing (Fatoora) applies to VAT-registered businesses in phases.

## Who this is for

- Indian companies entering Saudi Arabia
- Contractors and service firms with Saudi projects
- Gulf NRIs starting a business

## Services

- [Saudi Arabia Company Setup with MISA Licence](https://www.industax.com/services/saudi-business/saudi-misa-company-setup) — Investment licence, commercial registration and post-setup registrations
- [Saudi Zakat, Corporate Income Tax & WHT](https://www.industax.com/services/saudi-business/saudi-zakat-corporate-tax) — Zakat and 20% income tax returns and withholding on foreign payments
- [Saudi VAT & ZATCA E-invoicing (Fatoora)](https://www.industax.com/services/saudi-business/saudi-vat-e-invoicing) — 15% VAT registration, returns and e-invoicing integration

## FAQs

### Can a foreigner own 100% of a Saudi company?

In many sectors, yes, with a MISA investment licence. Some activities remain restricted or require minimum capital and local conditions.

### What is the difference between zakat and corporate tax in Saudi Arabia?

Zakat applies to the share of profits attributable to Saudi and GCC owners; corporate income tax at 20% applies to the share attributable to foreign owners.

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This is general information, not advice for your specific facts.