Company formation in Saudi Arabia: key facts for 2026
- Investment Law in force
- February 2025 (180 days after publication)OfficialMISA: Updated Investment Law
- MISA registration for foreign investors
- About 10 working days of processingOfficialMISA Investor Guide, 13th edition (03-2026)
- Forming the company on business.sa (foreign investors)
- 72-hour serviceOfficialMinistry of Commerce: Establishing a company under an investment licence
- Minimum capital under the Companies Law
- No statutory minimum for an LLC (MISA activity rules may set one); SAR 500,000 for a JSCOfficialCompanies Law, official translation
- Commercial registration (CR)
- No expiry; confirmed every yearOfficialSAMA circular on the Commercial Registration Law
- Chamber of commerce subscription
- None for the first 3 yearsOfficialMinistry of Commerce: Chambers Law, no subscription for 3 years
- Foreign ownership
- Up to 100% in open sectors, subject to MISA's excluded activities listOfficialMISA: Updated Investment Law
Who this guide is for, and who needs another route
- Foreign companies setting up a Saudi subsidiary or branch.
- GCC and Saudi investors forming a company through the Ministry of Commerce.
- Premium Residency holders forming a company in their own name.
- Founders deciding between an LLC, a simplified joint stock company and other company types.
Who it is not for
- Foreign individuals without Premium Residency, unless they qualify for MISA's entrepreneurial registration. We explain the routes on a first call.
- Activities on MISA's excluded list, until MISA approves entry. We check your activity against the current rules before anything is filed.
- Companies forming in a Special Economic Zone, which ECZA licenses under its own rules. We confirm that route case by case.
- Regional headquarters (RHQ) licences. Our team handles subsidiaries and branches, not RHQ applications.
How to set up a company in Saudi Arabia, step by step
- 01
Choose the route and the company type
Your ownership decides the route. Foreign investors register with MISA first, while GCC and Saudi investors usually go straight to the Ministry of Commerce. An LLC can have one owner or several, and the law sets no minimum capital for it. Other options are a simplified joint stock company (SJSC) or a joint stock company (JSC). Foreign companies can also open a branch or a regional headquarters (RHQ).
- 02
Prepare and certify the documents
Foreign shareholders prepare their documents abroad before anything is filed in Saudi Arabia. MISA asks for the foreign partner's CR, certified by the Saudi embassy, and its last financial statements, authenticated by the embassy. Premium Residency holders are exempt from both. We prepare the checklist and review each document before certification.
Time: Varies by country
- 03
Register with MISA (foreign investors)
Since February 2025, foreign investors register with MISA instead of obtaining a licence. MISA's Investor Guide puts processing at about 10 working days, and MISA sets its fee on approval. GCC and Saudi investors usually skip this step. Our MISA registration guide covers it in detail.
Platform: MISA Electronic Services PortalTime: About 10 working days (MISA Investor Guide)
- 04
Form the company on business.sa
The company is formed on business.sa, the Saudi Business Center platform, through a Ministry of Commerce service. The trade name is reserved, the Articles of Association are drafted and signed, and the commercial registration (CR) is issued. English trade names need an Arabic transliteration. A trade name decision takes up to 10 days, or 30 if other agencies are involved. The CR carries a unified national number starting with 7. For a company under a MISA registration, the Ministry lists this as a 72-hour service.
Platform: business.sa (Saudi Business Center)Time: Trade name: up to 10 days (30 with other agencies); formation service: 72 hours with a MISA registration (Ministry of Commerce)
- 05
Complete the registrations after the CR
The company joins the chamber of commerce, with no subscription for its first 3 years. It registers with ZATCA for zakat and tax, and for VAT once taxable supplies pass SAR 375,000 a year. It also registers with GOSI for social insurance, with Qiwa for work permits and contracts, and with Muqeem for its foreign staff's iqamas. The National Address is kept current through the CR's annual confirmation.
Platform: Chamber of commerce, ZATCA, GOSI, Qiwa, Muqeem, National AddressTime: Varies
- 06
Open the company bank account
Banks usually ask for the CR, the ZATCA number and the National Address. Their know-your-customer checks cover the beneficial owners, using legalised parent-company documents. Signatories often need an iqama. There is no official timeline, and bank onboarding is a common source of delay.
Platform: A Saudi bank of your choiceTime: Varies by bank; no official timeline
- 07
Secure premises and a Balady licence where needed
Many activities need a municipal licence for their premises through Balady. The application needs the CR, an Ejar-registered lease and the building's completion certificate. Balady issues the licence together with a Civil Defense safety permit for approved activities. Fees vary by activity, area and municipality. We confirm case by case whether your activity needs a licence.
Platform: BaladyTime: Varies by activity and municipality
Documents for company formation in Saudi Arabia
The documents depend on who owns the company and which steps it needs. For a company with a foreign corporate shareholder, expect these at each stage:
- The foreign shareholder's commercial registration (CR), certified by the Saudi embassy, for MISA.
- The parent company's CR as well, if its nationality differs from the shareholder's.
- The last fiscal year's financial statements, authenticated by the Saudi embassy, for MISA.
- A MISA registration with at least 30 days' validity left, for the Ministry of Commerce.
- ID for any GCC individual partner who is not registered in Absher.
- Valid professional licences for the licensed partners, if the company is a professional company.
- The CR, ZATCA number, National Address and legalised parent-company documents, for the bank.
- An Ejar-registered lease and the building's completion certificate, for a Balady licence.
Premium Residency holders are exempt from MISA's CR and financial-statement requirements. MISA itself does not require translations, though other ministries may. Whether an apostille can replace embassy certification is not confirmed, so we confirm it case by case.
Government fees for company formation
Government fees
| Item | Amount |
|---|---|
| Ministry of Commerce formation fee (LLC) | SAR 1,200 |
| Ministry of Commerce: Establishing a company under an investment licence | |
| Ministry of Commerce formation fee (JSC or SJSC) | SAR 1,600 |
| Ministry of Commerce: Establishing a company under an investment licence | |
| Publication fee | SAR 500 |
| Ministry of Commerce: Establishing a company under an investment licence | |
| VAT on Ministry of Commerce fees | 15% |
| Ministry of Commerce: Establishing a company under an investment licence | |
| MISA registration fee (foreign investors) | Set by MISA on approvalTo confirm |
| MISA Investor Guide, 13th edition (03-2026) | |
| Chamber of commerce subscription | None for the first 3 years |
| Ministry of Commerce: Chambers Law, no subscription for 3 years | |
| Embassy certification of documents | Varies by countryTo confirm |
| Balady municipal licence | Varies by activity, area and municipalityTo confirm |
Our fee
Our fee is quoted after a first call, once we know your activity, ownership and city. We always show it separately from government fees.
Government fees checked on 22 October 2026 against the sources listed below. The Ministry of Commerce publishes these amounts for companies formed under a MISA registration. Our fees page lists the government fees in one place, including those that vary by case.
What changed in 2025 and 2026
The MISA licence is now investment registration
Since February 2025, foreign investors register with MISA instead of obtaining a licence; the RHQ licence still exists. Our MISA registration guide explains what changed.
CR renewal is now annual confirmation
Since the Commercial Registration Law took effect in April 2025, CRs no longer expire. The company confirms its CR data every year on business.sa. Three months after a missed confirmation, a fine applies and the CR is suspended. After a year of suspension, the CR is cancelled permanently.
Branch CRs are replaced by one CR per company
A single CR, under a unified national number starting with 7, now covers all of a company's activities and branches. Separate branch CRs are no longer issued. Existing branch registers have five years, to around April 2030, to regularise.
Delays we see
This section is written from our team's recent formation files.
- In our recent files, a company setup has taken up to about two months from documents in hand.
- Most of that time is waiting for approvals on government portals: the MISA registration, the trade name decision and any agency that reviews the activity.
- Embassy certification of parent-company documents happens before filing. Its time depends on the country, so we plan it first.
- We prepare each file completely before it is submitted, so an approval does not stall on a missing document.
What we handle
- Confirm the route and company type for your ownership and activity before anything is filed.
- Prepare the document checklist and review each document before it is certified.
- Prepare and submit the MISA registration for foreign investors, and track it to approval.
- Form the company on business.sa, from the trade name and Articles of Association to the CR.
- Complete the chamber, ZATCA, GOSI, Qiwa and Muqeem registrations that follow.
- Help with the bank account and the Balady licence where your activity needs one.
- File the CR annual confirmation each year.
Company formation in Saudi Arabia: common questions
How do I set up a company in Saudi Arabia?
Foreign investors register with MISA first, then form the company on business.sa. GCC and Saudi investors usually form theirs directly through the Ministry of Commerce. After the CR come the chamber, ZATCA, GOSI and Qiwa registrations and the bank account. Some activities also need a Balady licence.
Which route do GCC and Saudi investors follow?
Most form their company directly through the Ministry of Commerce, without registering with MISA. GCC investors are treated as local, unless the GCC company has non-GCC shareholders. Registration with MISA is optional for Saudi investors.
How long does company formation take in Saudi Arabia?
For a foreign investor, MISA's processing takes about 10 working days, and forming the company on business.sa is a 72-hour service. No official source gives a total timeline, because the trade name decision, document certification abroad, bank onboarding and any Balady licence vary. We confirm your timeline after reviewing your documents.
How much does it cost to form a company in Saudi Arabia?
Under a MISA registration, the Ministry of Commerce charges SAR 1,200 to form an LLC, plus a SAR 500 publication fee and 15% VAT. For a JSC or SJSC the fee is SAR 1,600, plus the same extras. MISA sets its own fee for foreign investors on approval and publishes no fixed amount. Our fee is quoted separately after a first call.
Which company type should I choose?
The choice turns on how many owners you have, your capital and whether you need share classes. An LLC can have one owner or several and has no statutory minimum capital. An SJSC allows one or more shareholders, share classes and flexible management, without the JSC capital minimum. A JSC needs issued capital of at least SAR 500,000, with at least a quarter paid up.
Can a foreign investor own 100% of a company in Saudi Arabia?
Yes, in open sectors, subject to MISA's excluded activities list and activity rules. Entering a listed activity needs MISA's approval first. Trading with 100% foreign ownership, for example, needs SAR 30,000,000 in capital and presence in at least three regional or global markets. It also carries further investment and Saudi staff training commitments. We check your activity against the current rules on a first call.
Can a foreign company open a branch in Saudi Arabia?
Yes. Under the Companies Law, a foreign company can operate in Saudi Arabia through a branch or a representative office. The parent company registers with MISA first, like any foreign investor. The branch files Saudi-standard audited accounts within six months of its year-end. A temporary CR is available for time-bound work, and MISA offers a temporary registration for government contracts.
Sources
- MISA Investor Guide, 13th edition (03-2026) (checked )
- MISA: Updated Investment Law (checked )
- MISA: Frequently asked questions (checked )
- Ministry of Commerce: Establishing a company under an investment licence (checked )
- Ministry of Commerce: CR annual confirmation (checked )
- Ministry of Commerce: Commercial registration FAQ (checked )
- SAMA circular on the Commercial Registration Law (checked )
- Companies Law, official translation (checked )
- Ministry of Commerce: Chambers Law, no subscription for 3 years (checked )
- ZATCA: VAT registration threshold (checked )
- Balady: Issuing a commercial licence (checked )
- Clyde & Co: Investment Law implementing regulations (September 2025) (checked )
- Clyde & Co: Commercial Registration Law and Trade Names Law (September 2025) (checked )
- EY: Special Economic Zones implementing regulations (January 2026) (checked )
- Global Law Experts: Setting up a foreign-owned LLC in Saudi Arabia (checked )
- TASC Outsourcing: Municipal licensing requirements in Saudi Arabia (checked )