One-person LLC owned by a foreigner
Can I be the only shareholder of a Saudi LLC as a foreigner?
The situation
The Companies Law that took effect on 19 January 2023 lets a single person form an LLC and hold all its interests. A foreign owner must also register with MISA.
The law
- Companies Law (effective 19 January 2023): One person can own an LLC; financial statements deposited within 6 months of year end
- Investment Law (Royal Decree M/19, 11 August 2024): Foreign investors register with MISA before investing; licensing replaced by registration
What it means for you
A sole owner holds the powers of the manager, board and general assembly. That makes decisions simple but you sign everything yourself. The foreign share will be subject to 20 percent income tax on profit, not Zakat. You can still appoint a separate manager in the articles if you will not be in the Kingdom often.
What to do
- Register as a foreign investor with MISA.
- Reserve the trade name on the Saudi Business Center.
- Choose a single-owner LLC in the application and appoint the manager.
- Plan for income tax at 20 percent on profits.
We can do this for youSet up a foreign-owned company in Saudi Arabia: MISA investor registration and commercial registration: SAR 9,500