The manager's family
A levy of SAR 400 a month applies to each dependant of a foreign resident, on top of their health insurance.
Company registration in Saudi Arabia: the real cost for foreigners
What setting up a company actually costs in 2026, line by line: government fees, documents, running costs and capital, with one-off items kept apart from yearly ones. All amounts are in Saudi riyals (SAR 3.75 = USD 1; about SAR 4.30 = EUR 1 in September 2026), sourced and shown as ranges.
- Government set-up fees (excl. MISA)
- ≈ SAR 1,900 to 2,5002
- Levy per foreign employee
- SAR 700 to 800 a month5
- MISA fee
- Set on approval1
Information verified in September 2026 · Notes and sources
In brief
- Government fees to incorporate an LLC (trade name, articles, publication, commercial registration) come to roughly SAR 1,900 to 2,500 in 2026: SAR 200 or 500 for the name, then SAR 1,200 for incorporation and SAR 500 for publication, plus 15% VAT.
- The Ministry of Investment (MISA) fee is set case by case on approval (Investor Guide, 13th edition, 2026): advisory firms report anything from zero to about SAR 62,000 a year depending on the activity, to be confirmed at filing.
- The heavier costs come after incorporation: office (SAR 10,000 to 60,000 a year), a levy of SAR 700 to 800 a month per foreign employee, the iqama (SAR 650 a year), health insurance and a 2% GOSI contribution.
- In our illustrative worked example (services LLC in Riyadh, one shareholder, one foreign manager), year one costs about SAR 33,000 to 59,000 excluding the MISA fee and salary, or roughly USD 8,800 to 15,700.
- Share capital (SAR 100,000 to 500,000 expected in practice) is not an expense: it stays in the company's account.
What makes up the cost of business setup in Saudi Arabia?
Most figures online blend four different things. Government fees go to the authorities (MISA, Ministry of Commerce, chamber of commerce, municipality). Document costs are incurred at home and for translation. Running costs start as soon as the company has an office and a manager on the ground. Capital is a contribution that stays with the company.
It also helps to separate what you pay once from what recurs every year or month. A well-prepared services company pays little at incorporation; the office, the manager's visa and the levy on foreign staff are what weigh over time.
For a range that fits your city, number of shareholders and staff, use the cost calculator. It uses exactly the lines below.
Saudi company formation cost table (2026)
Amounts in SAR, checked in September 2026. Ranges are wide where sources disagree or the amount depends on your situation.
Table 1
| Item | Type | Amount (SAR) | Frequency |
|---|---|---|---|
| MISA registration (Ministry of Investment) | Government | Set on approval; 0 to about 62,000 depending on activity | Yearly |
| Trade name reservation | Government | 200 (Arabic) to 500 (foreign language) | Once |
| Articles, publication and commercial registration (CR) | Government | 1,200 + 500 publication, plus VAT (≈ 1,955 incl. VAT) | Once |
| Annual CR confirmation | Government | 1,200 for an LLC | Yearly, from year two |
| Chamber of commerce | Government | 200 to 5,000 by category | Yearly |
| Municipal licence (Balady) | Government | 0 to 5,000 by activity and premises | Yearly |
| Lease registration on Ejar | Government | 0 to 400 | Yearly |
| ZATCA, GOSI, Qiwa registration (opening) | Government | Free | Once |
| Apostille and notarised documents | Documents | 0 to 3,000 per shareholder | Once |
| Certified Arabic translations | Documents | 1,000 to 5,000 per shareholder | Once |
| Office (business centre or private) | Running | 10,000 to 60,000 | Yearly |
| Work visa for the manager or a foreign employee | Running | 2,000 to 3,500 per person | Once |
| Residence permit (iqama) | Running | 650 per person | Yearly |
| Levy on foreign employees | Running | 700 to 800 per person | Monthly |
| GOSI contribution (foreign employee) | Running | 2% of basic salary + housing | Monthly |
| Mandatory health insurance | Running | 800 to 6,000 per person | Yearly |
| Qiwa and Muqeem subscriptions | Running | 1,000 to 2,700 | Yearly |
| Share capital | Capital (not an expense) | No statutory minimum; 100,000 to 500,000 expected | Deposited once |
MISA licence fee: why the numbers disagree
Worked example: services LLC in Riyadh with one foreign shareholder
An illustrative scenario, not a quote or a real client file. Assumptions: a single foreign corporate shareholder, consulting activity, SAR 100,000 capital, one foreign manager paid SAR 15,000 a month (basic + housing), one desk in a business centre, no other staff in year one.
Table 2
| Item | Assumption | Amount (SAR) |
|---|---|---|
| Trade name | Arabic or foreign-language name | 200 to 500 |
| Articles, publication, CR | SAR 1,200 + 500, with or without VAT | 1,700 to 1,955 |
| Apostilles and notarised documents | Extract, accounts, resolution, power of attorney (free apostille in some countries, such as France) | 0 to 1,500 |
| Certified translations | Licensed office in Saudi Arabia | 1,000 to 3,000 |
| Manager's work visa | Visa, medical, visa centre | 2,000 to 3,500 |
| One-off subtotal | 4,900 to 10,455 | |
| Riyadh Chamber of Commerce | Young-company category, capital below SAR 375,000; first year often included | 0 to 200 |
| Business centre | One desk with Ejar lease | 12,000 to 25,000 |
| Balady and Ejar | Depends on the business centre | 0 to 2,500 |
| Qiwa and Muqeem | Small entity | 1,000 to 2,700 |
| Manager's iqama | 12 months | 650 |
| Levy on the manager | SAR 800 × 12 (no Saudi staff) | 9,600 |
| Manager's GOSI | 2% × SAR 15,000 × 12 | 3,600 |
| Manager's health insurance | Basic to mid-level cover | 1,500 to 4,000 |
| Yearly subtotal (excl. MISA) | 28,350 to 48,250 | |
| Year-one total (excl. MISA and salary) | ≈ USD 8,800 to 15,700 | ≈ 33,000 to 59,000 |
| MISA fee | As notified by the ministry | 0 to about 62,000 |
| Share capital | Deposited, not spent | 100,000 |
How much does a Saudi company cost to run each year?
Once set up, a small services company with one foreign manager typically costs SAR 30,000 to 50,000 a year before salaries and the MISA fee: office, CR confirmation, chamber, Qiwa and Muqeem, iqama, levy, GOSI and health insurance.
Each additional foreign employee adds about SAR 9,000 to 10,500 a year in fixed charges (levy, iqama, permit), plus 2% of salary in GOSI and health cover. Hiring Saudi staff changes the maths: total GOSI is about 21.5%, but the levy on your foreign staff can drop from SAR 800 to SAR 700 a month and you move towards your Saudization targets.
What about advisory fees?
The amounts above are government fees and running costs. Our fees are not included: they depend on the activity, the structure and the services you choose (formation alone, or with trademark filing and VAT registration).
We quote them in writing after the first call, and government fees are recharged at cost with receipts. How we charge is explained on the pricing page.
Frequently asked questions
How much does company registration in Saudi Arabia cost for a foreigner?
For a services LLC, government incorporation fees are about SAR 1,900 to 2,500, plus SAR 1,000 to 8,000 for documents (apostilles, translations). A full first year, with office, visa, iqama, levy and insurance for a foreign manager, comes to about SAR 33,000 to 59,000 excluding the MISA fee and salary in our worked example.
What is the MISA licence fee in 2026?
There is no licence any more but a registration, and MISA's Investor Guide (13th edition, 2026) says the fee is set case by case on approval. Advisory firms report anything from zero to about SAR 62,000 a year depending on the activity. Only the amount MISA notifies is binding: confirm it at filing.
How much does it cost to keep a Saudi company running each year?
Typically SAR 30,000 to 50,000 a year for a small services company with a foreign manager, before salaries and the MISA fee. The office and the SAR 800 monthly levy on the manager are the two biggest items.
Is share capital a cost?
No. Capital is paid into the company's bank account and remains available for its business. There is no general statutory minimum for a services LLC, but SAR 100,000 to 500,000 is expected in practice.
How much is that in dollars or euros?
The riyal is pegged at SAR 3.75 to the US dollar, so our worked example is about USD 8,800 to 15,700 in year one, excluding MISA and salary. At September 2026 rates (about SAR 4.30 to the euro) that is roughly EUR 7,700 to 13,700.
Do I need a physical office?
Yes, a lease registered on the Ejar platform is required for the national address and, depending on the activity, the municipal licence. A business-centre desk is the practical minimum, from about SAR 10,000 to 12,000 a year.
How much do the manager's visa and iqama cost?
About SAR 2,000 to 3,500 for the work visa including the medical, then SAR 650 a year for the iqama and SAR 700 to 800 a month in levy. Add mandatory health insurance and 2% of salary for GOSI.
Notes and sources
- 1.MISA: Investor Guide, 13th edition (February 2026)
- 2.Ministry of Commerce: start your business
- 3.Council of Health Insurance: mandatory policy
- 4.Real Estate General Authority: Ejar platform
- 5.Saudi Press Agency: levy cancelled for licensed industrial establishments
- 6.PwC Worldwide Tax Summaries: Saudi Arabia, GOSI rates
- 7.HCCH: Saudi Arabia accedes to the Apostille Convention
Information verified in September 2026. Amounts and timelines are observed ranges provided for information only. Government fees are set by Saudi authorities and may change: we confirm them in writing before you commit to anything.
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