• Home /
• How SAGIA can help /
• Frequently asked questions

Frequently asked questions

• 1. What are the types of entry visas to the Kingdom?

  There are four types of entry visas to the Kingdom:
  
  • Investor visas
  • Business visit visas
  • Employment visas
  • Family visit visas
  
• 2. Can the spouse of a Saudi government employee change his/her status?

  According to the latest amendment of the investment regulation, an investor is defined as the person who enters the Kingdom of Saudi Arabia with the intention to invest. Therefore, residents cannot change their status to investors.
• 3. Are investors required to open a bank account to transfer the capital requirement?

  An investor may deposit the money in any local bank and have a certificate of deposit issued without opening a bank account.
• 4. Does SAGIA issue permits in the field of high school education?

  No, investment in schools is excluded from foreign investment.
• 5. Can investors use capital-required money once company registration is received?

  Yes, funds can be used to operate the company once the company is registered, and there is no restriction on withdrawals.
• 6. Can an investor start an engineering consultancy in the Saudi Arabia?

  Licensing for engineering consultancy is to be obtained from the Ministry of Commerce & Industry, not from SAGIA.
• 7. Can licensing be obtained through SAGIA for training or consulting institutes?

  A foreign investor may engage in training or consulting activities in Saudi Arabia. However, a preliminary approval from the Ministry of Education is required for teaching languages.
• 8. What is the highest foreign share a partner can own in a mobile or fixed operator?

  The highest foreign share is 70%. If a mobile of a fixed operator is doing business in cooperation with Saudi Telecommunication Company (STC), then their approval is vital.
• 9. What sectors of economy are open to foreign investors?

  The law permits foreigners to invest in all sectors of the Saudi Arabian economy, except for specific activities contained in the negative list.
  
  Different levels of capital are required depending on the nature of the project or business being set up, these are as follows:
  
  • SR.100,000 for individual establishments
  • SR. 500,000 for companies
  • SR.1,000,000 for industrial projects
  • SR.25,000,000 for agricultural projects
  
• 10. How much time is needed to complete the formalities for obtaining a visa?

  • Investor visas - one to two days
  • Business visit visas - one to two days
  • Employment visas - three weeks
  • Family visit visas - one day
• 11. What are the documents required for obtaining family visa?

  The following documents are required:
  
  • Duly filled Visa Request Form
  • Copy of Investors License
  • Photocopy of all the pages of valid passport and Iqama (identity card)
  • Original passport and iqama for verification
• 12. Is it permissible to use Business visa for employment purposes?

  No, it is not permissible to use a Business visa for employment purposes.
• 13. Is there any minimum wage?

  At present there is no such law.
• 14. Can I invest as a foreign investor if I am a non-Saudi resident?

  According to Article (6) Item (3) of the Executive Rules of the Foreign Investment Act, the license applicant should be a person who has come to the Kingdom for the purpose of investment. A non-Saudi resident is, therefore, ineligible to become a foreign investor.
• 15. Are there trade unions and worker associations in the Kingdom?

  Labor authorities have passed a new regulation allowing workers in different sectors to form their associations and committees to handle various labor issues in cooperation with their employers.
• 16. How can workers/professionals be hired?

  Through newspaper advertisements, internet job sites or recruitment agencies spread all over in the Kingdom
• 17. Can a foreign investor keep their passport while finalizing visas?

  Under the new Foreign Investment Act, owners or the foreign partners in a licensed project have the right to keep their passport and can finalize visas themselves and their family members at the passport department.
• 18. If an investor has multiple investment projects, which project will their visa be on?

  An investor's sponsorship will be on the first approved investment project and may be transferred to the second project in case of cancellation of the first one.
• 19. What are the percentage of taxes imposed?

  According to the New Tax Law, the percentage is fixed at 20% on profit while indefinite losses are carried forward to the next year. A Saudi partner will have to pay 2.5% zakah as tax.
• 20. How can an investor fulfill the capital requirements for investment?

  Investors can either provide capital from within the Kingdom or bring capital into the country from abroad to fulfill their capital requirements.
• 21. Who controls the company commercial naming process?

  Company commercial naming process is controlled by the regulation in effect at the Ministry of Commerce and Industry.
• 22. Can leased machinery payments be transferred through the bank?

  Yes, you can transfer lease payments to vendors, SAGIA approval is not needed.
• 23. Do we need to pay additional costs to open branches in other cities?

  Additional costs will be incurred if you wish to open more branches.
• 24. How do I get contractor classification to participate in Government tenders?

  You can find the necessary steps by clicking the following Ministry of Municipal and Rural Affairs link:
  http://contractors.momra.gov.sa/General/ListOfClassified.aspx
• 25. Are there any annual fees after registration?

  Yes, there is a renewal fee.
• 26. Is the registration fee refundable?

  No, the registration fee is not refundable.