Company registration in Saudi Arabia: requirements for foreigners
Foreign founders can own 100% of a Saudi company in most activities, provided they register with the Ministry of Investment (MISA) before trading. This guide sets out what is actually required in 2026: which activities are open, how much capital, which documents, apostille and translation rules, the manager's residency, and why files get stuck.
- Foreign ownership
- Up to 100% outside the excluded list1
- MISA processing (official)
- 10 working days2
- Apostille accepted since
- 7 December 20224
In brief
- Since 12 February 2025, foreign investors no longer apply for a "MISA licence": they register with the Ministry of Investment, receive an investment registration certificate, then obtain a commercial registration (CR).
- Foreigners can own 100% of a company in most activities; only activities on the excluded list need prior approval, and a few categories carry their own thresholds (100% foreign trading: SAR 30 million of capital).
- There is no general statutory minimum capital for a services LLC, but MISA and banks expect SAR 100,000 to 500,000 in practice.
- Parent-company documents must be apostilled in the home country and translated into Arabic by a translation office licensed in Saudi Arabia.
- MISA's official guide (February 2026) gives 10 working days for a complete file; the fee is set by the ministry on approval and must be paid within the notified period, otherwise the registration is void.
Who can register a company in Saudi Arabia as a foreigner?
The revised Investment Law defines a foreign investor as any natural or legal person who is not Saudi. It guarantees equal treatment with Saudi investors and sets one prior obligation: register with MISA before investing. Failing to do so can lead to a fine of up to SAR 300,000 (Article 11).
In practice, MISA's standard file is built around a foreign company: it asks for the investing company's registration extract and its latest annual accounts. Founders without a company have two routes. The entrepreneur route relies on a support letter from an approved incubator or a Saudi university. Holders of Premium Residency are exempt from the company documents.
No Saudi sponsor or partner is needed for open activities. A local partner is only required in certain categories, listed in the table below. You can check your own case in a minute with our eligibility check.
What changed in 2025 (and early 2026)
Which activities are restricted for foreign investors?
The law starts from freedom to invest, except for activities on the excluded list, which MISA publishes and updates; a foreign investor needs prior approval for those (Article 8). Commonly cited exclusions are upstream oil exploration and production, military manufacturing, security and investigation services, and real estate in Makkah and Madinah. Other activities are open with specific conditions:
Table 1
| Category (MISA guide 02-2026) | Minimum capital | Minimum Saudi share | Additional conditions |
|---|---|---|---|
| 100% foreign trading | SAR 30,000,000 | None | Presence in at least 3 regional or global markets; SAR 300M invested over 5 years (or SAR 200M with manufacturing, R&D or logistics commitments); train 30% of Saudi staff each year |
| Trading with a Saudi partner | SAR 26,666,667 | 25% | None |
| Telecommunications | Not specified | 40% | None |
| Telecom support services | Not specified | 30% | None |
| Professional activities with a Saudi partner | Not specified | 25% | Both partners licensed in the same profession; a non-professional partner capped at 30% |
| 100% foreign engineering consultancy | Not specified | None | Presence in 4 countries and at least 10 years' experience |
| 100% foreign legal practice | Not specified | None | Approval letter from the Ministry of Justice |
| Services, consulting, IT, marketing (common case) | No statutory minimum | None | General registration conditions only |
How much capital does a foreign-owned company need?
For a services LLC, Saudi law sets no general minimum capital. MISA and the banks still look at whether capital, activity and business plan fit together, and in practice they expect SAR 100,000 to 500,000. Fixed thresholds only apply to the categories in the table above.
Capital is not a cost: it is paid into the company's account and stays at its disposal. The amount does have knock-on effects, for instance on your Riyadh Chamber membership category (a lower rate below SAR 375,000 for a young company). See minimum capital for details and formation cost for the budget.
Which documents does MISA require?
The core list from the official guide, plus what the Ministry of Commerce and the bank ask for next. Our full checklist covers each document.
Investing company (foreign shareholder)
- Recent certificate of incorporation or registry extract, apostilled
- Annual accounts for the last closed financial year, apostilled
- Current articles and a board or shareholder resolution approving the Saudi entity
- If the ultimate parent is in another country: its registration too
- Power of attorney for the person filing
Individuals
- Passports of individual shareholders and the manager (valid for at least 6 months)
- GCC shareholders: ID card if not already in Absher
- Entrepreneur route: support letter from an approved incubator or Saudi university quoting the activity code
Activity-specific
- Chosen ISIC4 activity code
- Category documents: presence in other markets, track record, ministry approval and so on
- Certified Arabic translation of every foreign document
Apostille, legalisation and translation: what is accepted
Saudi Arabia has applied the Hague Apostille Convention since 7 December 2022. If your country is a member, an apostille replaces legalisation by the Saudi embassy. MISA's guide still refers to documents "certified by the Saudi embassy"; that is the legacy wording, and the apostille covers it for member countries. Non-member countries still go through consular legalisation.
Arabic translations should generally be made by a translation office licensed in Saudi Arabia. A translation done abroad, even by a sworn translator, is often rejected by MISA and the Ministry of Commerce. It is one of the most common reasons for back-and-forth.
Does the general manager have to live in Saudi Arabia? And Saudization?
No rule requires the manager to live in the Kingdom at registration. In practice, someone holding a residence permit (iqama) soon becomes essential: opening the bank account, running the accounts on Qiwa (Ministry of Human Resources), Muqeem (residency management) and GOSI (social insurance), and signing day to day. MISA's guide includes a dedicated visa for senior roles (general manager, CEO, chairman), issued once the CR is in place.
Some Ministry of Human Resources procedures also require a registered Saudi user on the company account. That is the job of a government relations officer, either employed or outsourced.
Saudization (the Nitaqat programme) sets a share of Saudi staff by activity and headcount. It matters from the first hires: the monthly levy on each foreign employee rises from SAR 700 to SAR 800 once expats outnumber Saudis. See our Saudization page.
Why do applications get refused or stuck?
The causes we see most often, and how to avoid them before filing.
Table 2
| Cause | What happens | How to avoid it |
|---|---|---|
| Wrong activity code or excluded activity | Rejected or referred to the regulator | Check the ISIC4 code and category before filing |
| Category thresholds not met | Refusal (capital, Saudi share, foreign presence) | Compare the project with the MISA guide table |
| Documents not apostilled or translated abroad | Requests for more information, weeks lost | Apostille at home, translation by a licensed Saudi office |
| Parent company with no closed accounts | Mandatory document missing | Plan around the first year-end, or look at the entrepreneur route or Premium Residency |
| MISA fee not paid on time | Registration treated as void | Pay within the notified period (15 working days per the service sheet) |
| Capital or source of funds unclear | Blocked at the bank rather than at MISA | Size the capital properly and prepare proof of funds from day one |
Further reading
Frequently asked questions
Can foreigners own 100% of a company in Saudi Arabia?
Yes, in the vast majority of activities. The Investment Law in force since February 2025 guarantees equal treatment between Saudi and foreign investors. Only activities on the excluded list need prior approval, and some categories (telecoms, professional services with a partner) require a Saudi share.
Do I need a Saudi sponsor or partner?
Not for open activities: the old sponsorship model does not apply to a foreign-owned company registered with MISA. A Saudi partner is only required in certain categories, for example 25% in trading if you do not meet the 100% foreign trading conditions.
Can an individual without a company set up in Saudi Arabia?
Yes, but MISA's standard file assumes a foreign company (extract and accounts). Individuals usually go through the entrepreneur route, with a letter from an approved incubator or Saudi university, or through Premium Residency, which waives the company documents. Some founders first set up a holding company at home.
What are the MISA licence requirements in 2026?
The licence has been replaced by registration. MISA asks for the investing company's apostilled registration extract and latest accounts, the activity code, category-specific documents and Arabic translations. It then sets the fee on approval, payable within the notified period.
What is the minimum capital for a foreign investor?
There is no general statutory minimum for a services LLC, but SAR 100,000 to 500,000 is expected in practice. Specific minimums apply to some categories: SAR 30 million for 100% foreign trading, SAR 26,666,667 for trading with a 25% Saudi partner.
Do I have to live in Saudi Arabia to register a company?
Not for registration, which is online and can be done remotely. However, a manager or officer holding an iqama is soon needed for the bank and government platforms, and a trip is usually required to open the bank account.
Is an apostille enough, or do I need the Saudi embassy?
For Hague Convention member countries, an apostille has been enough since 7 December 2022. Embassy legalisation remains the rule for non-members. Either way, plan for an Arabic translation by an office licensed in Saudi Arabia.
How long does MISA registration take?
MISA's official guide (February 2026) gives 10 working days for a complete file. The full set-up, through to the bank account and the manager's visa, usually takes 4 to 8 weeks; see our step-by-step page.
Notes and sources
- 1.MISA: Updated Investment Law and Q&A
- 2.MISA: Investor Guide, 13th edition (February 2026)
- 3.Bureau of Experts at the Council of Ministers: Investment Law
- 4.HCCH: Saudi Arabia accedes to the Apostille Convention
- 5.Saudi Press Agency: expat levy cancelled for licensed industrial establishments
- 6.US Department of State: 2025 Investment Climate Statement, Saudi Arabia
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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