Wage Protection
Flow: payroll to pre-payment WPS wage file, client bank processes, bank-returned WPS output uploaded in the Mudad Compliance System. Direct vendor-to-Mudad APIs are not a public standard.
Primary sources are the official portals listed above. Important exceptions: figures vary by entity, free zone, sector and employee nationality, and some rules have transitional arrangements, so confirm the position for your specific case. See our methodology for how we prioritise sources, and please report a change if a rule has moved.
Frequently asked questions
Can a foreigner own 100% of a company in Saudi Arabia?
Yes. With a MISA investment licence, most activities allow 100% foreign ownership, with no Saudi partner or local sponsor required. This is a core Vision 2030 reform.
What is a MISA licence and what does it cost?
MISA (formerly SAGIA) is the licence that lets a foreign investor legally own and operate in the Kingdom. The annual investment licence runs about SAR 2,000 to 12,000 depending on activity, though some fees have been suspended under the investor-facilitation package.
How much does it cost to set up a company in Saudi Arabia?
Realistically SAR 45,000 to 150,000 all in, depending on activity, structure and office needs. A MISA-licensed LLC often needs share capital (commonly around SAR 500,000 for certain activities) deposited after formation, plus commercial-registration and office costs.
How long does Saudi company formation take?
Well managed, end to end formation typically takes 6 to 10 weeks. DIY attempts or paperwork errors can stretch it to several months.
What is Saudization (Nitaqat)?
Nitaqat requires companies to employ a set percentage of Saudi nationals, banded by sector and size. Falling into the red zone blocks visas, permit renewals and Qiwa access, and can bring fines and banking restrictions.
When do I register employees with GOSI?
All Saudi employees must be enrolled in GOSI within 15 days of their start date. To count toward your Nitaqat quota, a Saudi must earn at least SAR 4,000 per month; SAR 2,000 to 3,999 counts as half an employee.
What are GOSI contribution rates in 2026?
For new-system employees the combined rate is 23.5% in 2026 (employee 10.75% / employer 12.75%), rising 0.5% a year to 25.5% by 2028. Pre-July-2024 employees stay at 21.5%. Non-Saudis attract only the employer occupational-hazard contribution.
What is Qiwa and do I need it?
Qiwa is the MHRSD platform where you manage contracts, work permits and Saudization, integrated with GOSI, MISA and the Ministry of Commerce. Employees must be registered with correct occupation codes, salaries and contracts. You will use it constantly.
What taxes apply to my Saudi business?
VAT is 15%. Corporate income tax of 20% applies to the foreign-owned share of profit, while the Saudi and GCC share is subject to Zakat at 2.5%. There is no personal income tax on salaries, but GOSI and WPS still apply.
What is WPS in Saudi Arabia and how does it work?
Saudi WPS runs through Mudad: you calculate payroll, the WPS wage file is processed by your Saudi bank, and the bank-returned file is confirmed in the Mudad Compliance System, monthly. It sits alongside GOSI and Qiwa as a core compliance obligation.
Last reviewed: 19 July 2026. General information, not legal or tax advice. Rates and rules change frequently and depend on entity, free zone, sector and nationality; confirm against the official sources above before you file or pay. Use the
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