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Costs and fees

Company formation costs in Saudi Arabia: government fees, and how our fee works

Facts checked

In short

To form an LLC under a MISA registration, the Ministry of Commerce charges SAR 1,200, plus SAR 500 publication and 15% VAT. Foreign investors also pay a MISA fee, set on approval. After that, the CR is confirmed every year for a Ministry of Commerce fee. Our fee is quoted after a short first call and always shown separately.

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When the company is formed

These government fees fall due when the company is formed on business.sa. Foreign investors also pay MISA's fee when it approves their registration. The amounts below are those the Ministry of Commerce publishes for companies formed under a MISA registration.

Ministry of Commerce formation fee: limited liability company (LLC)
SAR 1,200
Ministry of Commerce: Establishing a company under an investment licence
Ministry of Commerce formation fee: joint stock company (JSC) or simplified JSC (SJSC)
SAR 1,600
Ministry of Commerce formation fee: general or limited partnership
SAR 1,000
Publication fee
SAR 500
Added to the formation fee
VAT on Ministry of Commerce fees
15%
As stated on the Ministry of Commerce service page
MISA registration fee
Set by MISA on approval
To confirmFor foreign investorsMISA Investor Guide, 13th edition (03-2026)
Chamber of commerce subscription
None for the first 3 years
Counted from the CR dateMinistry of Commerce: Chambers Law, no subscription for 3 years

The Ministry of Commerce lists its formation, publication and VAT amounts on its service for establishing a company under an investment licence. MISA publishes no fixed fee amount, so we do not quote one.

Every year after formation

Saudi CRs no longer expire. Instead, the company confirms its CR data every year on business.sa and pays the Ministry of Commerce fee.

CR annual confirmation: LLC
SAR 1,200
Secondary sourceEvery year, on business.saAl Madani Law: Unified commercial register in Saudi Arabia
CR annual confirmation: JSC or SJSC
SAR 1,600
Secondary sourceEvery year, on business.sa
CR annual confirmation: general or limited partnership
SAR 1,000
Secondary sourceEvery year, on business.sa
MISA annual registration update
Set by MISA on approval
To confirmFor foreign-owned companies, every yearMISA Investor Guide, 13th edition (03-2026)

The Ministry of Commerce fee page refers to branch CR data. Law firms read the same fees as applying to the main CR. A missed confirmation brings a fine and suspension after 3 months, and permanent cancellation after a year of suspension.

Taxes and contributions to budget for

These are not setup fees. They are taxes and contributions every new company should budget for from the start. A company with mixed ownership splits income tax and zakat by each group's share.

VAT
15%
Secondary sourceStandard ratePwC Worldwide Tax Summaries: Saudi Arabia, other taxes
VAT registration with ZATCA
Mandatory above SAR 375,000 of taxable supplies a year
Voluntary above SAR 187,500ZATCA: VAT registration FAQ
Corporate income tax
20% of profit
Secondary sourceOn the share owned by non-Saudi, non-GCC shareholdersPwC Worldwide Tax Summaries: Saudi Arabia, taxes on corporate income
Zakat
2.5%
Secondary sourceOn the share owned by Saudi and GCC shareholders
GOSI: non-Saudi employees
2% of the wage
Secondary sourcePaid by the employerPwC Worldwide Tax Summaries: Saudi Arabia, other taxes
GOSI: Saudi employees first registered before 3 July 2024
21.5% of the wage
Secondary source9.75% employee, 11.75% employer; capped at a SAR 45,000 monthly wage
GOSI: Saudis first registered from 3 July 2024
Rates step up each year; confirmed case by case
To confirm

Costs that vary by case

  • Embassy certification of documents

    Varies by country. MISA asks for the foreign partner's CR and last financial statements to be certified by the Saudi embassy. Premium Residency holders are exempt.

  • Translations

    MISA itself does not require translations, though other ministries may ask for them.

  • Balady licence

    Varies by activity, area and municipality. We confirm it for your premises and activity.

  • Office lease and Ejar registration

    Market rate for the city and area. Banks expect a National Address tied to an Ejar-registered lease.

  • Bank account charges

    Each bank sets its own charges.

  • Visas, iqamas and the expat levy

    Confirmed at the time of each application, for your manager and each employee.

How our fee works

Our team quotes its fee after a short first call, once we know your activity, ownership and city. Those three points shape the work involved.

We always show our fee separately from government fees, so you can see what goes to the government and what comes to us.

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Questions

How much does it cost to set up a company in Saudi Arabia?

To form an LLC under a MISA registration, the Ministry of Commerce charges SAR 1,200, plus a SAR 500 publication fee and 15% VAT. Foreign investors also pay a MISA fee, which MISA sets on approval. Document certification, the office lease, the Balady licence and bank charges vary by case. Our fee is quoted after a short first call and shown separately from government fees.

Does MISA charge a registration fee?

Yes, but MISA publishes no fixed amount. It sets the fee when it approves the registration. MISA's Investor Guide gives 15 working days from the fee notice to pay, and 30 days in another section. If the fee is not paid in time, the registration is void. The annual registration update fee is set the same way.

How MISA registration works
Do Saudi CRs still need renewing?

No. Since the Commercial Registration Law took effect in April 2025, CRs no longer expire. Instead, the company confirms its CR data every year on business.sa. Law firms read the fee as SAR 1,200 for an LLC and SAR 1,600 for a JSC or SJSC. For a general or limited partnership, it is SAR 1,000. A missed confirmation brings a fine and suspension after 3 months.

Do I pay a chamber of commerce subscription?

Not in the first 3 years. Under the Chambers Law approved in December 2020, new companies pay no chamber subscription for 3 years from the CR date. We confirm the subscription that applies after that.

When must a new company register for VAT?

Registration with ZATCA is mandatory once taxable supplies exceed SAR 375,000 a year. A company may register voluntarily once its supplies exceed SAR 187,500. The standard VAT rate is 15%.

Do I pay GOSI for expat staff?

Yes. The employer pays GOSI 2% of the wage for each non-Saudi employee. For Saudi employees first registered before 3 July 2024, the total is 21.5%: 9.75% from the employee and 11.75% from the employer. Contributions are capped at a SAR 45,000 monthly wage. Rates for Saudis first registered from 3 July 2024 step up each year, so we confirm them case by case.

Is there a minimum capital for a company in Saudi Arabia?

Not for an LLC: the Companies Law sets no statutory minimum. A joint stock company needs issued capital of at least SAR 500,000, with at least a quarter paid up. MISA rules also set minimums for some activities, such as SAR 30,000,000 for trading with 100% foreign ownership.

How company formation works
Are government fees part of your fee?

No. Government fees are listed separately from our fee, each with its source and the date we checked it. Our team quotes its fee after a short first call, once we know your activity, ownership and city.

Sources

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