Company setup

Setting up a company in Saudi Arabia

Costs, timelines and steps for an LLC with 100% foreign ownership, based on 2026 government rates.

Updated · by Shayan Khan

Company setup

What a setup
really costs.

Most cost overviews online blend government fees with advisory costs and office rent into one misleading figure. Below are only the fees you pay directly to Saudi government bodies, based on 2026 rates.

Important in 2026

MISA licence fees (historically the largest cost item) are currently not being collected. Note: investors often sign an undertaking to pay the fees once a new fee structure is published. So this is a suspension, not a permanent exemption. Always check the current status on the MISA portal.

Government item
Cost (SAR)
MISA investment licenceMinistry of Investment, your first entry ticket
Suspended*
Trade name reservationArabic SAR 200 / English SAR 500, valid 90 days
200–500
Saudi Business Center bundleArticles, publication, CR issuance, first chamber year
± 1,775
Chamber of CommerceAnnual membership, depending on capital class
2.000–10.000
Municipality licence (Baladiya)Depending on location and activity
1.000–5.000
ZATCA · GOSI · Qiwa activationTax, social insurance, labour platform
Free
Indicative first year, government fees
± 5,000–17,000

* MISA licence fees are currently not being collected, but collection is suspended rather than abolished. Investors typically sign an undertaking to pay the fees (historically SAR 2,000 to 62,000, depending on licence type) once a new fee structure is published. The status is under review by the ministry. Amounts further exclude 15% VAT where applicable, minimum capital (often SAR 500,000 to be evidenced, not always deposited), a mandatory physical office, and professional advisory or translation costs. Always confirm current rates when applying.

The process in six steps
1

Apply for the MISA licence

The investment licence from the Ministry of Investment. This is the mandatory first step for any foreign ownership.

3–5 working days
2

Trade name reservation

Register a unique name via the Ministry of Commerce portal, in line with Saudi naming rules.

1 day
3

Draft and notarise the articles

The Articles of Association, digitally notarised via the Mithaq service so all shareholder rights are legally recorded.

2–5 days
4

Obtain the Commercial Registration

Your unique 10-digit CR number, the legal identity of your company, issued by the Ministry of Commerce.

2–4 days
5

Registrations: ZATCA, GOSI, Qiwa

Tax file, social insurance and labour platform. Required before you can hire staff or invoice.

1–2 weeks
6

Open a corporate bank account

With a Saudi bank such as Al Rajhi or SABB. In practice often the step with the longest lead time.

2–4 weeks
FAQ

Questions about company setup

Yes. Since Vision 2030, 100% foreign ownership is permitted in virtually all sectors, with no mandatory Saudi partner. You usually set up an LLC via a MISA investment licence.
Government fees run indicatively between SAR 5,000 and 17,000 for the first year. MISA licence fees are currently suspended, but with an undertaking to pay. Budget also for a mandatory office, capital to be evidenced, visas and advice. A realistic setup often lands around SAR 60,000 to 95,000 for the first year. Calculate your own situation with the cost calculator.
Realistically two to three months until you are operational. The MISA licence can be issued within a few working days, but the corporate bank account is almost always the slowest step due to strict compliance.
The standard corporate income tax is 20%. There is no personal income tax and VAT is 15%. In three Special Economic Zones (King Abdullah Economic City, Ras Al-Khair and Jazan) a rate of 5% applies for up to 20 years, provided you have genuine, value-adding activity there.
No. In most sectors a Saudi partner is no longer required and you can be a full foreign owner. Some regulated activities have their own requirements, so always check the specific activity code.

All frequently asked questions

Read more

Keep reading

Real estateRules per city, designated zones and the framework for Makkah and Madinah.Read more ResourcesFree whitepapers, tax guide and starter checklist.Read more FAQShort answers to the most common questions.Read more Cost calculatorGet an indication of the government fees for your setup.Read more
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