The Companies Law sets no minimum capital for a limited liability company, while a joint stock company needs at least SAR 500,000. The Ministry of Investment requires SAR 30 million for a 100% foreign-owned trading business. Below, each minimum capital threshold for a company in Saudi Arabia with its source, what banks and MISA expect in practice, and how to size your own capital.
We checked these figures on 14 October 2026 against the Companies Law and the MISA Investor Guide (13th edition, February 2026).
Table 1
| Form or activity | Minimum capital | Source | Note |
|---|---|---|---|
| LLC (services, consulting, tech) | No statutory minimum | Companies Law, Art. 174 | SAR 100,000 to 500,000 expected in practice |
| Joint stock company | SAR 500,000; at least a quarter (SAR 125,000) paid up on incorporation | Companies Law, Art. 59 | Incorporation fee SAR 1,600 + SAR 500 publication, plus VAT |
| Simplified joint stock company | No statutory minimum | Companies Law, Art. 139 | Issued and paid-up capital set in the articles |
| Trading with a Saudi partner | SAR 26,666,667 | Investor Guide, 5.1.1 | Saudi share of at least 25% |
| Trading, 100% foreign-owned | SAR 30,000,000 | Investor Guide, 5.1.1 | Presence in at least 3 regional or global markets; 5-year investment commitment |
| Telecoms, professional services, engineering consulting, legal, recruitment | No amount in the table | Investor Guide, 5.1.1 | Other conditions: Saudi share, track record or regulator approval |
Share capital is the money the partners put into the company and record in its articles of association. For an LLC the law sets no minimum, but three rules still shape the amount.
Article 174 lets the partners fix the capital in the articles of association, divided into equal, indivisible stakes. A foreign investor can own 100% of an LLC in Saudi Arabia in most activities once the investment is registered with MISA.
No minimum does not mean any amount will do. MISA and the banks look at whether the capital fits the activity and the business plan. That is why SAR 100,000 to 500,000 is the usual range for a services company.
There is a legal consequence too. Under Article 182, if losses reach half the capital, the manager must call the partners within 60 days to decide whether the company continues. A token capital can trigger that rule in the first year.
Aim for an amount that convinces MISA and the bank without locking up cash the company does not need.
Office, salaries, visas and the expat levy. Capital that covers them makes the file easier to accept. The company formation cost calculator gives you a range.
Capital is paid into the company account once it is open, with proof of source of funds. See the corporate bank account guide.
In Riyadh, membership costs SAR 200 for a young small company with capital under SAR 375,000, SAR 2,000 up to SAR 1 million, and SAR 5,000 above.
Residents follow the same MISA route and thresholds. An individual resident applying as an entrepreneur needs an employer no-objection letter; premium residency holders are exempt from the foreign-company documents.
It depends on the legal form and the activity. An LLC and a simplified joint stock company have no statutory minimum, a joint stock company needs SAR 500,000, and 100% foreign-owned trading needs SAR 30 million. A foreign-owned services LLC usually holds SAR 100,000 to 500,000.
Separate capital from costs. Government incorporation fees for an LLC are about SAR 1,900 to 2,500, excluding MISA fees set case by case. Capital stays in the company account, typically SAR 100,000 to 500,000 for a services LLC. The full first-year budget is on our formation cost page.
No. SAR 500,000 is the statutory minimum for a joint stock company (Article 59), not for an LLC. It sits at the top of the range usually expected for a foreign-owned services LLC.
For a joint stock company, at least a quarter must be paid up on incorporation, so SAR 125,000 of SAR 500,000. For an LLC, the capital is paid into the company account once it is opened, and the bank checks the source of funds.
Yes, by registering the investment with MISA and then incorporating a company, under the same minimum capital rules as any company in Saudi Arabia. A resident applying individually as an entrepreneur needs a no-objection letter from the employer.
No. It remains the company's money in its bank account and funds its operations. Government fees are separate: SAR 1,200 incorporation and SAR 500 publication for an LLC, plus 15% VAT.
Information verified in October 2026. Amounts and timelines are observed ranges provided for information only. Government fees are set by Saudi authorities and may change: they are confirmed in writing in the quote before you commit to anything.
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