Limited liability company (LLC)
The default choice
A separate legal entity with limited liability, possible with a single shareholder. It suits most services, consulting, tech and engineering projects. More on our LLC in Saudi Arabia page.
Company registration in Saudi Arabia for foreign founders
Company registration in Saudi Arabia follows two stages for a foreign investor: registering with the Ministry of Investment (MISA), then incorporating the company and obtaining the commercial registration on the Saudi Business Center. This guide covers the rules in force since the 2025 reform, government fees checked against official sources, and the points that actually cause delays.
- Foreign ownership
- Up to 100% in most activities1
- MISA processing (official)
- 10 working days2
- LLC incorporation (Ministry of Commerce)
- SAR 1,200 + SAR 500 publication, excl. VAT4
Information verified in September 2026 · Notes and sources
In brief
- A foreign individual or company can register a company in Saudi Arabia and own 100% of it in most activities; only activities on MISA's published list of excluded activities are prohibited or restricted.
- Since the Investment Law took effect in February 2025, the MISA licence has been replaced by investor registration, evidenced by an investment registration certificate.
- MISA's Investor Guide (edition 02-2026) gives a processing time of 10 working days and says the fee is set by the ministry on approval and must be paid within the notified deadline, or the registration is void.
- Incorporating a foreign-owned LLC costs SAR 1,200 plus SAR 500 in publication fees at the Ministry of Commerce, before 15% VAT.
- There is no general statutory minimum capital for a services LLC, but 100% foreign-owned trading requires SAR 30 million in capital under MISA's Investor Guide.
Can a foreigner start a business in Saudi Arabia?
Yes. The Investment Law sets out freedom of investment and equal treatment of Saudi and foreign investors. A foreign individual or company can own 100% of a Saudi company in the vast majority of activities. The exceptions sit on the list of excluded activities, which MISA publishes and updates.
The route has two stages. First, investor registration with MISA, which checks that the activity is open and that its specific conditions are met. Second, incorporation of the company on the Saudi Business Center, the Ministry of Commerce platform, which ends with the commercial registration (CR). The operational registrations follow: tax, social insurance, labour and the general manager's residence permit.
The detailed conditions (Saudi partner, capital, restricted activities) are covered on our page on requirements for foreigners. If you already run a company elsewhere and are weighing a subsidiary against a branch, see the next sections.
What changed in 2025
Which structure: LLC, branch or regional headquarters?
The right choice depends on your activity and how far you want to separate the parent company from the Saudi entity.
Branch of a foreign company
Extension of the parent
No separate legal personality: the parent company is liable for the branch. Useful for delivering a specific contract. See branch office in Saudi Arabia.
Regional headquarters (RHQ)
Multinational groups
For groups that run the Middle East and North Africa region from Riyadh. MISA's guide requires, among other things, 15 full-time employees within the first year, 3 of them at executive level. See regional headquarters.
Scientific and technical office
No commercial activity
For a foreign company that already has a Saudi agent or distributor and wants to provide technical support. The office cannot invoice or sign commercial contracts.
How to register a company in Saudi Arabia: the steps
An overview. Our guide on how to start a business in Saudi Arabia goes through each platform (Qiwa, Muqeem, Balady, Ejar and the rest). Durations are indicative.
- 1
Check the activity and choose the structure
Identify the activity code (ISIC 4), check it is not on the excluded list, and note the conditions attached to it (capital, Saudi partner, sector approval).
- Qui
- Tasis
- Durée
- 1 to 3 days
- 2
Prepare and legalise the parent company documents
Commercial register extract and latest financial statements of the foreign company, IDs and powers of attorney. Legalisation by apostille (Saudi Arabia has applied the Hague Convention since 7 December 2022) or by the Saudi embassy, depending on the form accepted at filing, then certified Arabic translation.
- Qui
- You, with Tasis
- Durée
- 1 to 3 weeks
- 3
Register with MISA
Online application for investment registration. The ministry notifies the fee on approval. Everything about it on our MISA licence and registration certificate page.
- Qui
- Tasis files, MISA decides
- Durée
- 10 working days (official)
- 4
Reserve the trade name and approve the articles
Trade name reservation and articles of association drafted on the Saudi Business Center, then approved electronically by the shareholders or their attorney.
- Qui
- Tasis, shareholders approve
- Durée
- 2 to 7 days
- 5
Obtain the commercial registration (CR)
Payment of incorporation and publication fees, issue of the CR, then membership of the chamber of commerce in the head office city.
- Qui
- Ministry of Commerce
- Durée
- 1 to 3 working days
- 6
Set up the premises: office, address, municipal licence
Lease registered on Ejar, national address, and a municipal licence on Balady depending on the activity and premises.
- Qui
- Tasis and partners
- Durée
- 1 to 3 weeks
- 7
Open the bank account and complete registrations
Corporate bank account (banks often ask for the manager in person), ZATCA for zakat and VAT, GOSI, Qiwa, Muqeem, then the general manager's visa and iqama (residence permit).
- Qui
- You, the bank, the authorities
- Durée
- 2 to 6 weeks
How much does company formation in Saudi Arabia cost?
Government fees and start-up costs for a foreign-owned services LLC, in Saudi riyals (SAR). Checked in September 2026; figures that are not officially published are shown as ranges.
Table 1
| Item | Amount | Source and comment |
|---|---|---|
| MISA registration | SAR 0 to about 62,000/yr, set on approval | Set case by case by MISA on approval (Investor Guide, 13th edition, 2026); range observed by advisory firms depending on the activity. Confirm at filing |
| LLC incorporation and CR | SAR 1,200 + SAR 500 | Incorporation and publication fees, plus 15% VAT (Saudi Business Center) |
| Chamber of commerce | A few hundred to a few thousand SAR/yr | Depends on the chamber and membership tier |
| Apostilles and certified translation | SAR 3,000 to 10,000 | Estimate, depending on the number of documents and country of origin |
| Office (Ejar lease) | From about SAR 15,000/yr | Estimate; a business centre is often the starting point |
| Levy on foreign employees | SAR 700 to 800/month | Per non-Saudi employee, general manager included. Confirm on Qiwa |
| Share capital | SAR 100,000 to 500,000 | Level expected in practice for a services LLC; no general statutory minimum. The capital stays with the company. Trading has its own thresholds |
Business licences and conditions by sector
After MISA registration, some activities need an extra approval or classification. Figures from MISA's Investor Guide (edition 02-2026).
Services, consulting, tech
The most direct route, usually with no sector licence. Fully foreign-owned engineering consultancy requires a presence in 4 countries and 10 years' experience. See consulting company.
Trading (wholesale and retail)
At 100% foreign ownership: SAR 30 million in capital and a presence in at least 3 markets, plus training and investment commitments over 5 years. With a 25% Saudi partner: SAR 26.7 million. See trading company.
Industry
Industrial licence from the Ministry of Industry and Mineral Resources, often with land in an industrial city. See industrial licence.
Construction and contracting
Contractor classification is needed for public tenders, based on track record, accounts and headcount. See contractor classification.
Regulated activities
Health, education, finance, telecoms, transport: the sector regulator must approve. Telecoms, for example, require 40% Saudi participation under MISA's guide.
Riyadh, Jeddah or Dammam: where to base the company?
Procedures are online and identical across the Kingdom. The city changes the chamber of commerce, office costs and the business environment.
Business setup in Riyadh
The obvious choice for public-sector work: ministries, sovereign funds and the head offices of large groups. The regional headquarters programme requires the RHQ to be in Riyadh.
Offices are the most expensive in the country, but business centres keep start-up costs under control.
- Best for
- Public contracts, consulting, tech, regional HQs
- Chamber of commerce
- Riyadh Chamber
Business setup in Jeddah
The historic commercial capital on the Red Sea, with Jeddah Islamic Port. Suited to trading, imports, logistics, hospitality and tourism, including religious tourism.
Offices generally cost less than in Riyadh.
- Best for
- Trading, imports, logistics, hospitality, tourism
- Chamber of commerce
- Jeddah Chamber
Business setup in Dammam and Khobar
The centre of the Eastern Province and the energy sector: oil and petrochemical supply chains, industrial services, maintenance and engineering.
King Abdulaziz Port, nearby industrial cities and the King Fahd Causeway to Bahrain.
- Best for
- Energy, industry, engineering, logistics
- Chamber of commerce
- Asharqia Chamber
The most common causes of delay
Further reading
Pages covering each part of the project in detail.
Frequently asked questions
How much does it cost to register a company in Saudi Arabia as a foreigner?
Budget for the MISA fee, set case by case on approval (advisory firms report anything from zero to about SAR 62,000 a year depending on the activity; confirm at filing), SAR 1,200 for incorporation and SAR 500 for publication at the Ministry of Commerce, chamber of commerce membership, apostilles and translations, and an office. Share capital is not an expense: it stays in the company's account.
How long does company registration take in Saudi Arabia?
MISA states 10 working days to process a complete application, and the CR follows within a few days. Market providers generally quote 4 to 8 weeks to reach the CR, document preparation included, and longer once the bank account and the manager's iqama are added.
Do I need a Saudi partner?
No, in most activities a foreigner can own 100% of the company. Some activities still require a Saudi partner, for example 40% in telecoms or 25% for certain professional activities, according to MISA's Investor Guide.
Is there a minimum capital for an LLC?
There is no general statutory minimum for a services LLC, but MISA and banks expect capital in line with the business plan, in practice SAR 100,000 to 500,000. Fully foreign-owned trading requires SAR 30 million.
Do I need to travel to Saudi Arabia?
Most steps are online, with a power of attorney. A trip is usually needed to open the bank account and for the manager's iqama (medical check and biometrics).
Does the MISA licence still exist?
No. Since February 2025 the investment licence has been replaced by registration with MISA, evidenced by an investment registration certificate. It has to be updated every year.
Is it easier for Premium Residency holders?
Yes. MISA's guide exempts Special (Premium) Residency holders from providing the foreign commercial register, financial statements and activity-specific documents when registering. See our page on Premium Residency.
Notes and sources
- 1.MISA: Updated Investment Law and Q&A
- 2.MISA: Investor Guide, 13th edition (02-2026)
- 3.Saudi Business Center: incorporating a company under an investment registration certificate
- 4.Ministry of Commerce: Start your business
- 5.ZATCA: Value Added Tax
- 6.Balady: issuing a commercial (municipal) licence
- 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.
See also
Want to know whether your activity is open and what it will cost?
A free 30-minute call with Nathan Fenina: we check your activity against MISA's excluded list, recommend a structure and send you a written estimate of government fees and timeline.
- Free 30-minute first call
- Reply within one business day
- No commitment