Company Setup
The complete operational guide to setting up a Holding Company in Saudi Arabia — MISA licensing, capital requirements, the 6–14 week process, costs, tax treatment and the structural questions worth deciding upfront.
What is a Holding Company in Saudi Arabia? A Saudi Holding Company is an LLC or JSC whose primary activity is owning shares in other Saudi or foreign companies. It is the standard vehicle for group restructuring, RHQ structures and Saudi-side consolidation of multi-entity operations.
A Saudi Holding Company is an LLC or JSC whose primary activity is owning shares in other Saudi or foreign companies. It is the standard vehicle for group restructuring, RHQ structures and Saudi-side consolidation of multi-entity operations. It is one of several entity options foreign companies have when entering the Kingdom — and the right vehicle depends on activity, scale, liability appetite, and whether the entity will need to invoice or hire under its own name.
Capital requirement: Set as appropriate to the underlying investments — typically SAR 500,000+ for LLC structure, SAR 5,000,000+ for JSC structure where regulated subsidiaries are involved. Ownership: 100% foreign ownership permitted via MISA. The Holding Company can own 100% of Saudi operating subsidiaries.
Tamra manages the full lifecycle — MISA application, AoA drafting, CR registration, Chamber of Commerce, government portals (Qiwa, Muqeem, Mudad, GOSI, ZATCA, Absher, Nafath), bank account opening and the GM Iqama.
| Entity type | Holding Company in Saudi Arabia |
|---|---|
| Capital requirement | Set as appropriate to the underlying investments — typically SAR 500,000+ for LLC structure, SAR 5,000,000+ for JSC structure where regulated subsidiaries are involved. |
| Foreign ownership | 100% foreign ownership permitted via MISA. The Holding Company can own 100% of Saudi operating subsidiaries. |
| Setup timeline | 8–12 weeks |
| Year-one cost | SAR 130,000 – SAR 260,000 year-one |
| Tax treatment | 20% CIT on dividends from foreign subsidiaries (subject to participation exemption rules). Saudi-to-Saudi dividends are generally exempt. |
| Sponsoring authority | MISA (Ministry of Investment of Saudi Arabia) |
8–12 weeks
8–12 weeks
SAR 130,000 – SAR 260,000 year-one. This includes MISA, CR, Chamber of Commerce, government portal registrations, office lease, GM Iqama and Tamra's professional fee. Annual renewal costs are materially lower.
100% foreign ownership permitted via MISA. The Holding Company can own 100% of Saudi operating subsidiaries.
20% CIT on dividends from foreign subsidiaries (subject to participation exemption rules). Saudi-to-Saudi dividends are generally exempt.
Yes. A registered office address with an Ejar-validated lease is required for CR and Baladiya licensing. Virtual offices are not generally accepted by MISA for foreign-investor entities.
Yes. Tamra handles the formation end-to-end, then provides ongoing operational support: payroll, GR, Iqama renewals, GOSI/WPS filings, ZATCA compliance and government portal maintenance.