- PPF Points
- 2,039
When it comes to the offshore company laws in Saudi Arabia, you need to be aware of one thing, that is that Saudi Arabia can be a great country where you can invest money and start an offshore company. Saudi Arabia is open to the fact that foreign investors can set up their businesses here, which can be 100% owned by foreign entities under this licensed structure, and this can only be done through the enforcement of strict regulations and requirements related to the transparency of transaction reports. Foreigners interested in opening a business are granted a Foreign Investment License through the Ministry of Investment, currently, the Saudi Arabian General Investment Authority (SAGIA), in (maybe the process has changed now?) in the first place. With the Foreign Investment License secured, international entrepreneurs may choose to register various types of companies, of which the Limited Liability Company (LLC) is the most popular for its easy and structured setup as well as its governance. While it is not possible to have tax-free areas or keep money in bank accounts as a secret, Saudi Arabia does have some advantages provided in the form of corporate tax exemptions for companies located in certain zones and sectors that comply with the Vision 2030 initiative of the Kingdom, such as, for example, technology, tourism, renewable energy, and logistics. These areas can be the solution for reduced taxes, easier procedures, and the ability to use local labor and infrastructure, although these enterprises must comply fully with the labor, commercial, and tax regulations in Saudi Arabia. Similarly, they need to fulfill the local content requirements and, on the other hand, the conditions for Saudization, meaning that a certain percentage of your workforce must be Saudi nationals. Accordingly, such a destination as Saudi Arabia may not be considered an offshore one in its conventional understanding, but it definitely is here where noble, fair, and open-presented business also goes international. Therefore, Saudi Arabia brings tangible and real opportunities for legal global business expansion, especially those with the Middle East setting, which promotes more transparent, clearer, and long-term potential.
