Company Formation in Saudi Arabia - A Complete Guide

Whether starting a business in the Middle East, you will face challenging, evolving markets. Saudi Arabia offers one of the most exciting and favorable investment opportunities today. Company formation in Saudi Arabia is the first step for startup founders with plans to scale, SMEs, and multinational companies looking to capitalize on this market.

This guide is intended to help entrepreneurs in preparing for all the necessary steps before registering a company in Saudi Arabia. Covering everything from registering a Saudi LLC to understanding company business licenses and CR numbers to Saudization.

The successful reforms that have occurred since the government implemented Vision 2030 include allowing overseas companies participating in the Saudi market to take full ownership of the businesses in which they invest. This guide provides you with step-by-step information to gain insight into how to start a small business in Saudi Arabia and its current status.

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Why Set Up a Company in Saudi Arabia?

As the economic engine of the Middle East, Saudi Arabia is excitingly evolving its corporate tapestry. Facilitating the passage of foreign investors, the Kingdom has positioned itself at the center of its Vision 2030 and commitment to diversifying the economy and reducing reliance on oil.

Now is an excellent time for companies and entrepreneurs across all sectors and legal jurisdictions to establish a presence in Saudi Arabia. There are numerous advantages, whether operating as a foreign or domestic business entity, to conducting business in Saudi Arabia:

Ideal Location

Saudi Arabia is situated at the intersection of Europe, Asia, and Africa, serving as a gateway to lucrative global markets.

Economic Diversification

Investment opportunities will arise as the government expands into various industries, including tourism, technology, renewable energy, and logistics.

Foreign Ownership

Foreigners recently gained the ability to own their companies fully, in most industries, without a local sponsor or partner.

Tax Advantages

Foreign investors can take advantage of various tax exemptions and incentives when starting a business, including those available in designated and special economic zones.

Strong Infrastructure

The Kingdom boasts promising infrastructure, including logistics, ports, transportation networks, and digital networks, that can support the development of a scalable business.

Business-Friendly Environment

Digital transformation in government services, quick licensing from MISA, and significant regulatory reforms make Saudi Arabia as open as ever.

With the right mindset, establishing a company in Saudi Arabia is possible and can act as an entry point for long-term success in the GCC and beyond. Let's see how you can do it.

Legal Requirements for Company Registration in Saudi Arabia

Starting a business in Saudi Arabia requires you to adhere to a legal framework created to protect all investors, all employees, and the economy of the Kingdom of Saudi Arabia. These registration activities must be completed to ensure a smooth company formation in Saudi Arabia and full compliance with local legislation and frameworks.

The primary legal requirements include MISA approval, sufficient capital, a registered office address, and compliance with Saudization obligations.

General Investment Authority (MISA) Approval

The Ministry of Investment of Saudi Arabia (MISA) is a regulatory body responsible for approving foreign investments and issuing appropriate business licenses. A foreign-owned or locally established business must obtain a MISA license before commercial registration (CR). MISA licenses are categorized based on business activity and include:

Service License: For companies providing professional and commercial services
Industrial License: For manufacturing and industrial businesses
Entrepreneur license: For small businesses and startups
Regional Headquarters (RHQ) license: For multinational companies setting up a regional office

The licensing process enables Saudi authorities to verify that the proposed business plans comply with Saudi regulations, particularly those related to ownership and sector restrictions.

Registered Office Address

A valid physical address within Saudi Arabia is mandatory for company registration. This address will be recorded on the commercial registration certificate and the official location for receiving legal notices and government communications.

Virtual offices and flexible workspaces have become popular alternatives, particularly for startups and small businesses; however, they must meet specific government criteria to be accepted.

Capital Requirements

Depending on the type of new company, the capital requirements will vary:

Limited Liability Company (LLC): The capital requirement is generally a minimum of SAR 500,000; however, variations may apply according to sectoral or free zone regulations.
Joint Stock Company (JSC): These generally take a higher minimum capital, usually SAR 10 million for closed joint stock companies.
Branch of Foreign Company: Capital requirements depend on the parent company’s financial standing and the nature of activities.

Foreign investors should be aware of special capital regulations that might apply to their sector or business model, including restrictions on repatriation and investment thresholds.

Saudization Compliance (Nitaqat Program)

The Saudization policy, implemented through the Nitaqat program, requires companies to employ a specific minimum quota of Saudi national employees, depending on the industry and company size. If the company fails to meet its Saudization quota, it will be unable to issue visas, obtain labor approvals, or apply for government grants.

New companies should give careful thought to their workforce before employing any staff and plan accordingly to meet Saudization targets. Additionally, they should undergo regular monitoring by the Ministry of Human Resources and Social Development.

Documents Required for Company Registration in Saudi Arabia

Submitting and preparing the required documents is one of the most crucial steps in the company registration process in Saudi Arabia.

If the documents are complete and correct, this will enable MISA, the Ministry of Commerce, and other governmental entities to facilitate processing without delay. It will not delay the issuance of your Commercial Registration (CR) and business licenses.

Passport Copies of Shareholders and Managers

All shareholders, company partners, and managers must provide copies of their passports. Foreign investors typically need to provide notarized and attested copies of their passports.

Articles of Association (AoA)

The Articles of Association (AoA) will govern the internal rules within the company, including shareholders’ obligations, capital structure, and governance structure. The AoA will need to be written in accordance with applicable Saudi commercial law and signed as notarized by a public notary in the KSA.

Power of Attorney

If you are having your legal representative or a consultant undertake the registration on your behalf, a notarized power of attorney must be provided, evidencing that this person is acting on the company’s behalf.

Name Reservation Certificate

Before registration, request a Name Reservation Certificate from the Ministry of Commerce, which confirms all name reservations through the Ministry’s online portal. This certificate proves that the name is unique and approved for use.

Board Resolution

The branches of foreign companies must have a formal board resolution passed by the parent company authorizing the establishment of a branch in Saudi Arabia.

Lease Agreement

Your presence must be proven through a registered office address established in Saudi Arabia, typically accompanied by a lease agreement or title deed.

Other Sector-Specific Approvals

Regulatory bodies responsible for your activity may request additional approvals or licenses, including but not limited to municipal approvals, healthcare approvals, licences for your specific industry, etc.

Important Notes on Documentation

Any documentation outside Saudi Arabia must be attested or authenticated by the Saudi Embassy or Consulate in the country of origin, followed by authentication by the Ministry of Foreign Affairs of Saudi Arabia.
An approved translator must attest and translate Documents in foreign languages into Arabic.
Timely preparation and correct formatting of documents can significantly shorten the company formation timeline and avoid costly resubmissions.

Step-by-Step Company Formation Process in Saudi Arabia

The steps of company formation in Saudi Arabia are broadly well defined and prescribed by various authorities, including the Ministry of Investment of Saudi Arabia (MISA), the Ministry of Commerce (MoC), the Saudi Arabian General Investment Authority (SAGIA) (now all combined under MISA), the Chamber of Commerce, and others.

Each process step for company registration or licensing is identified, along with the defined durations for processing each step. Before describing the processes more fully, here’s a quick rundown of the basic steps for company formation in Saudi Arabia:

Step 1 – Name Reservation with the Ministry of Commerce (MoC)

The initial step in company formation in Saudi Arabia is to reserve your company name through the Ministry of Commerce (MoC) ‘s online system. This process ensures that your preferred name is original, does not contravene local naming restrictions, and can be registered legitimately.

The MoC requires that the business name not only not contain certain restricted words but also reflect the business’s nature. Entrepreneurs and foreign investors must check that their names are available through the online system to avoid duplicate names.

The name reservation process should take no longer than 1 to 2 business days. After that, you will receive a certificate confirming the reservation of your company name only for your registration.

Step 2 – Application for MISA License

To date, Saudi Arabia has seen some positive movement associated with reforms under Vision 2030, which has centralized the licensing of foreign direct investment through the Ministry of Investment of Saudi Arabia (MISA), ultimately leading to the dissolution of the Saudi Arabian General Investment Authority (SAGIA).
If you are a foreign investor, you will now obtain an MISA license to comply with the law to operate within Saudi Arabia’s jurisdiction. You will be applying for one of the following licenses, depending on your business activity:

Service License: For companies offering professional or commercial services
Industrial License: For manufacturing and industrial operations
Entrepreneurial License: For small startups and entrepreneurs with innovative projects
Regional Headquarters (RHQ) License: For multinational corporations establishing regional hubs

To apply, you must submit your business plan, shareholder passports, the reserved company name, and other relevant documents. The MISA license approval process usually takes 3 to 10 working days, although it can take longer depending on your industry and the complexity of your business.

Step 3 – Drafting and Notarizing Articles of Association (AoA)

Once you have received your MISA license, you must prepare Articles of Association (AoA). The Articles of Association (AoA) are a vital document outlining how the company will be organized, managed, and owned. The AoA defines:

The company’s objectives and activities
Capital structure and shareholder contributions
Roles and powers of managers and board members
Profit distribution and decision-making processes

In Saudi Arabia, the AoA must comply with the Companies Law and be properly notarized by a Saudi public notary; otherwise, it cannot be legally enforced. The notarial process formally specializes in authenticity and legality. Notarization is an essential requirement in the company registration process in Saudi Arabia.

Most businesses typically rely on legal representatives who specialize in Saudi corporate law to ensure the accuracy of drafting the Articles of Association (AoAs) and minimize potential future claims.

Step 4 – Obtaining the Commercial Registration (CR)

The Commercial Registration (CR) will serve as your company’s legal registration (with the Ministry of Commerce (MoC) and your operating business license in Saudi Arabia. To obtain the CR, you need to submit:

The notarized Articles of Association
The approved MISA license
Proof of office lease or registered address
Shareholder and director identification documents
Other relevant permits or licenses, depending on your business type

The CR number is your company’s unique identifier, and it is required for nearly all official government and business transactions, such as opening bank accounts, securing visas, and entering into contracts.

Submitting the necessary documents, the commercial registration process in Saudi Arabia typically takes 5-10 working days.

Step 5 – Registering with the Saudi Chamber of Commerce

You must also register with the Saudi Chamber of Commerce once you have received your CR. This is mandatory and important, as it will provide you with access to essential resources and services, including government tenders, building a network of industry contacts, and other trade facilitation services.

Chamber registration is straightforward and typically completed within 1 to 3 business days. Your company will receive a chamber certificate that complements your commercial registration and supports your business credibility in the Saudi market.

Step 6 – Opening a Corporate Bank Account

A corporate bank account is vital for your business to perform various functions, such as receiving payments, paying suppliers, and paying employees. Many reputable banks in Saudi Arabia, such as Al Rajhi Bank, Saudi National Bank (SNB), Riyad Bank, and SABB, offer corporate banking services designed for foreign investors.

To open a bank account, you will need to provide:

The company’s CR and Chamber certificates
MISA investment license
Board resolution authorizing account opening
Valid identification documents of authorized signatories

Account setup usually takes 3 to 7 business days, depending on the bank’s due diligence process.

Step 7 – Obtaining Municipality and Sectoral Approvals

Many business activities require additional permits and approvals from the Municipality or specialized regulatory bodies, especially if your company deals with:

Food and beverage
Construction and real estate
Healthcare and pharmaceuticals
Education and training
Industrial and manufacturing sectors

Municipality approvals confirm that your office or retail location meets zoning, safety, and regulatory standards. Sector-specific licenses may involve environmental clearances or health inspections.

The approval period varies by municipality and sector but generally ranges from 7 to 30 working days.

Step 8 – Registering with Tax and Labor Authorities

The final step in the company formation process in Saudi Arabia is to register with the Zakat, Tax, and Customs Authority (ZATCA) to comply with tax requirements and with the General Organization for Social Insurance (GOSI) for social insurance, employee insurance, and Saudization laws.

If applicable, ZATCA registration enables your company to charge and remit VAT, as well as file income tax returns, in a legally compliant manner.
GOSI registration ensures compliance with social insurance contributions for Saudi and expatriate employees, supporting the government’s Saudization program.

Both registrations typically take 3 to 5 working days and are essential before hiring employees or conducting formal payroll operations.

Company Formation Timeline

Process Step	Approximate Duration	Authority Involved
Name Reservation	1–2 working days	Ministry of Commerce (MoC)
MISA License Application	3–10 working days	Ministry of Investment of Saudi Arabia (MISA)
Drafting & Notarizing AoA	2–5 working days	Saudi Public Notary
Commercial Registration (CR)	5–10 working days	Ministry of Commerce (MoC)
Chamber of Commerce Registration	1–3 working days	Saudi Chamber of Commerce
Corporate Bank Account Opening	3–7 working days	Saudi Banks
Municipality & Sectoral Approvals	7–30 working days	Local Municipality & Sector Regulators
Tax & Labor Registration (ZATCA & GOSI)	3–5 working days	Zakat, Tax and Customs Authority (ZATCA), General Organization for Social Insurance (GOSI)

Types of Business Entities in Saudi Arabia

Choosing the right type of business entity is a key decision in your company formation in Saudi Arabia. The legal form you select specifies your rights as an owner(s), limits your liability, identifies your compliance and funding requirements, and whether you can hire foreign nationals or undertake government projects.

Saudi Arabia permits several types of company structures for foreign investors, Gulf Cooperation Council nationals, or businesspersons to support various business purposes and investor intentions.

The following section gives a high-level summary of the main types of legal entities that may be established under the Saudi Companies Law administered by the Ministry of Commerce (“MoC”) and the Ministry of Investment of Saudi Arabia (“MISA”).

Limited Liability Company (LLC) – الشركة ذات المسؤولية المحدودة

The Limited Liability Company (LLC) is the most favorable business structure for foreign companies and domestic operators. An LLC is a crucial business structure due to its degree of flexibility, easier compliance obligations, and provision for shareholder personal liability protection.

Its key features are as follows:

Requires from 1 to 50 shareholders
The minimum capital requirement is SAR 100,000 (for most activities).
Allows foreign ownership up to 100% with an MISA license.
Requires a local office address
Must appoint one or more managers
Profits can be freely repatriated.

An LLC is best suited for service providers, consultancies, trading businesses, and small to medium-sized enterprises (SMEs). Foreigners must apply for a foreign investment license from MISA before applying for an LLC registration.

Joint Stock Company (JSC) – الشركة المساهمة

A joint stock company (JSC) is appropriate if businesses are larger or looking to access capital through the public or private offering of shares. The JSC will be subject to more regulation, including reports, financial audit, and governance by the board committee.

Key characteristics:

Minimum of 2 shareholders (5 for public JSC)
Minimum capital of: SAR 500,000 (private) / SAR 10 million (public)
The Board of Directors is a required element of developing a JSC.
Suitable for industrial ventures, large-scale operations, and multinationals
Can be listed on Tadawul (Saudi stock exchange)

Foreign Company Branch – فرع شركة أجنبية

Foreign companies wishing to establish a full operational presence without incorporating a separate legal entity can register a branch office. This structure legally extends the parent company and requires it to obtain a foreign investment license from MISA.

Key features:

100% foreign ownership allowed
Parent company holds full legal liability
Must appoint a general manager
Permitted to engage in commercial, service, or contracting activities
Must comply with Saudization and GOSI rules

Branches are ideal for companies testing the market or fulfilling government contracts without transferring full ownership to a local entity.

Representative Office (Technical and Scientific Office - TSO)

For companies that wish to promote products, conduct research, or manage relationships with local clients, without engaging in commercial activity, a Technical and Scientific Office (TSO) structure is available

Key features:

Cannot issue invoices or earn revenue
Acts purely as a liaison or R&D center
Requires MISA approval
Suitable for pharmaceutical, engineering, and tech companies

Sole Proprietorship

A Sole Proprietorship, or Establishment, is a company owned entirely by a single GCC national or Saudi citizen. Foreigners are not permitted to form sole proprietorships, except in exceptional cases that require local sponsorship.

Key features:

100% personal liability
Suitable for freelance, retail, or consulting businesses
No capital requirements
Fastest and simplest registration route
Cannot add shareholders

Limited Partnership Company (شركة التوصية البسيطة)

Sharikat Al-Tawsiyah Al-Baseetah, or a Limited Partnership, is a hybrid structure that allows partners to be both general and limited. At minimum, the Limited Partnership must have at least one general partner with total liability and one or more limited partners with liability limited to their capital contribution.

A Limited Partnership Company is appropriate for any enterprise with silent investors (limited partners) that contribute capital but do not manage the day-to-day operations. Characteristics of a Limited Partnership Company include:

Requires at least two partners: One general and one limited
One general partner will manage the business, and the general partner will bear unlimited liability
Limited Partners will only bear liability to the extent of their investment.
Not a common choice for foreign investors
Must be registered with the Ministry of Commerce (MoC)
Governed by the Saudi Companies Law

Joint Venture (المشروع المشترك)

A Joint Venture in Saudi Arabia is an agreement or contract between two or more parties to conduct a specific venture. Depending upon the nature of the venture and its existence, a JV may be registered (being a legal person) or unregistered (being contractual).

JVs are particularly prevalent when a foreign company collaborates with a Saudi Arabian firm to bid for a government contract, operate in a controlled sector, or comply with Saudization and localization requirements. The salient features:

May be incorporated (e.g., as an LLC or JSC) or unincorporated
Requires a legal agreement outlining profit-sharing, responsibilities, and duration
Unregistered JVs are not considered a separate legal entity
Typically used in oil & gas, construction, real estate, and infrastructure projects
Parties remain separately liable unless otherwise stated

Legal oversight is provided by:

Ministry of Investment (MISA) for foreign investment approval
Ministry of Commerce (MoC) for incorporated ventures

Joint ventures are highly strategic in industries with foreign ownership restrictions or when local experience and distribution channels are necessary.

Not sure which company type fits your business? Get expert advice now.

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Business Licenses in Saudi Arabia

Every foreign investor or company seeking to establish a business in Saudi Arabia must obtain a commercial license from MISA (previously SAGIA), which is based on the investor’s sector and business activities. The license type determines the business you can conduct, the required capital, Saudization quotas, and sectoral approvals.

Here are the main types of business licenses available in Saudi Arabia:

Picture of a man writing on a paper holding a pen in hand - Business License in Saudi Arabia

Service License

The Service License is the most common license for foreign investors planning to offer consultancy, IT services, training, logistics, and other non-industrial business activities.

Key features:

Applicable for consulting firms, agencies, software companies, education, HR, logistics, and more
Allows for 100% foreign ownership in most sectors
Requires MISA approval before registering with the Ministry of Commerce (MoC)
Minimum capital typically SAR 500,000 for foreign companies
May require professional certification depending on the sector

Entrepreneurial License

The Entrepreneurial License is designed for startups and early-stage ventures, particularly in tech, innovation, and high-growth sectors. It is issued through Saudi Arabia’s SME Authority (Monsha’at) in partnership with MISA.

Key features:

Targeted at startups and tech-driven businesses
Requires startup incubator or accelerator support
Lower capital requirements or capital waiver for early-stage companies
Accelerated process under Fast Track Setup
Exemptions from Saudization for some time

Industrial License

The Industrial License is issued for manufacturing or production businesses. It is granted in collaboration between MISA, the Ministry of Industry and Mineral Resources, and other sectoral bodies.

Key features:

For factories, assembly lines, and production units
Mandatory Saudi partner for specific sub-sectors
Requires environmental clearance and land lease approval
Entitles investors to customs exemptions, VAT deferrals, and industrial loans
Subject to stricter Saudization quotas and zoning rules

Regional Headquarters (RHQ) License

Saudi Arabia now offers a special RHQ license to attract multinational companies to base their Middle East operations in Riyadh. This is part of Vision 2030’s initiative to boost economic localization.

Key features:

For international companies managing GCC or MENA operations
Allows 100% foreign ownership without a local sponsor
Zero corporate income tax for 30 years (under the RHQ incentives program)
Includes work visa quotas, fast-track processing, and office space support
Must have operations in at least two other countries

Special Scenarios for Foreign Companies

Saudi Arabia’s investment ecosystem offers multiple company formation pathways tailored for foreign-owned businesses, GCC-based investors, and international enterprises. These exceptional cases enable you to navigate Saudi company registration in a manner that aligns with your structure, market entry plan, or cross-border presence.

Setting Up a New Foreign-Owned Entity

This is the most common route for new investors entering Saudi Arabia without prior operations in the Kingdom. Key features:

100% foreign ownership is allowed in most sectors with a valid MISA license
Entity types: LLC, JSC, or branch, based on business scope
Minimum capital requirement usually starts from SAR 500,000 (sector-dependent)
Requires submission of detailed documents like AoA, parent company profile, and board resolutions
Approval timelines range from 19 to 30 working days for most sectors.

Best For:

Global investors entering Saudi Arabia for the first time
Entrepreneurs establishing a Saudi presence without local sponsors

Foreign Company with GCC Ownership

Saudi Arabia offers favorable terms to businesses with shareholders from the Gulf Cooperation Council (GCC). These companies can benefit from reduced regulatory restrictions.

Advantages:

No MISA license required if majority-owned by GCC nationals
Treated like a Saudi-owned business in many sectors
Lower capital thresholds and simplified CR procedures
Direct registration with the Ministry of Commerce (MoC) is possible
In some industries (e.g., retail, trading), GCC investors may still need MISA clearance

Eligibility:

At least 51% GCC ownership
Shareholders must be natural GCC citizens or GCC-incorporated companies

Expanding an Existing Foreign Company (Branch/Subsidiary)

Companies outside Saudi Arabia can expand by establishing a branch or forming a subsidiary under their corporate umbrella.

Key differences:

Aspect	Branch Office	Subsidiary (LLC)
Legal Entity	Extension of the parent company	Separate legal entity
Liability	The parent company is fully liable	Limited liability
Taxation	Taxed as a parent	Taxed separately
License Type	MISA Service/Industrial	MISA + CR for LLC

Investment Through Special Economic Zones (SEZs)

Saudi Arabia is launching multiple Special Economic Zones (SEZs), such as King Abdullah Economic City (KAEC) and the Riyadh Integrated SEZ, with relaxed laws to attract strategic investments.

Benefits:

Zero customs duties for imported goods
20-year corporate tax holiday in some SEZs
Relaxed foreign ownership rules
Fast-track license approvals and ZATCA incentives
Infrastructure tailored for logistics, manufacturing, or fintech

Requirements:

Must meet sector-specific entry criteria
Apply through the SEZ authority and MISA jointly

Cost of Company Formation in Saudi Arabia

The cost of opening a company in Saudi Arabia depends on the business type, sector, and structure. This section breaks down every cost involved in the company formation process in Saudi Arabia.

Category	Estimated Cost (SAR)	Notes
MISA License Fee	2,000 – 11,000+	Varies by license type (Service, Industrial, Entrepreneurial, RHQ)
Commercial Registration (CR)	1,200 – 2,000	One-time registration + annual renewal
Chamber of Commerce Membership	2,000 – 4,000	Required for all companies
Municipality Fees (Baladiya License)	3,000 – 10,000+	Depends on location and activity type
ZATCA Registration	Free	Mandatory for VAT and tax compliance
GOSI Registration	Free	Required for hiring Saudi employees
Office Lease / Virtual Office	15,000 – 50,000+	Minimum 1-year lease or approved virtual office
Notarization & Legal Attestation	1,000 – 5,000	Depends on AoA complexity and language
Bank Account Opening Fees	500 – 3,000	Some banks may waive the fees for new businesses
Professional/Consulting Services	10,000 – 25,000+	Depends on the service provider & company type
Visa & Labor Setup (Iqama, WPS, MOL)	5,000 – 10,000 per employee	Includes visa stamping, medical, insurance, and MOL fees

The Total Cost Estimate for a Foreign-Owned LLC starts from SAR 40,000 to 80,000+, depending on the activity, location, and services used.

How Long Does It Take to Register a Company?

When planning your business entry into the Kingdom, timelines are just as important as costs. The answer depends on several factors, including the type of entity, the nature of the business activity, the approvals required, and the readiness of the documents.

In this section, we’ll break down the complete company registration timeline in Saudi Arabia, covering both startups and more complex corporate structures, such as joint stock companies (JSCs) or branches of foreign companies.

Average Company Formation Timelines

Type of Business	Estimated Timeframe	Key Notes
Startup (Fast-Track LLC)	15–19 working days	Requires full document readiness, digital processing
Standard LLC Setup	21–30 working days	Includes licensing, CR, and Chamber registration
Joint Stock Company (JSC)	40–64 working days	Legal approvals, publication, and notary involvement
Foreign Branch Setup	25–45 working days	Requires board resolution, POA, MISA + CR license
Regional Headquarters (RHQ)	30–50 working days	Special program with incentives, but more documentation
Entity in Special Economic Zones (SEZ)	15–25 working days	Priority processing and fast-track licenses

Factors Affecting the Timeline

Several elements influence how quickly your business can be registered: Type of license issued by MISA (Ministry of Investment) Availability of notarized and legalized documents Name reservation status Compliance with Saudization and labor registration Bank account opening duration (can delay final CR issuance) Office lease registration and Baladiya approvals for commercial activity

Pro Tip: Documents like Power of Attorney (POA) and Board Resolutions for foreign companies must be notarized, apostilled (if applicable), and translated into Arabic. This step alone can take 7–14 working days if done from outside the Kingdom.

Why Choose Us for Company Formation in Saudi Arabia?

Setting up a business in Saudi Arabia is full of opportunity, but it also involves navigating complex government systems, document legalizations, Saudization compliance, MISA approvals, and more.

With over 6+ years of experience in company formation across the GCC, we’ve helped more than 100 foreign and local businesses successfully register and grow in the Kingdom.

End-to-End Service

From MISA licensing to CR issuance, municipality approvals, labor registration, and opening your corporate bank account, we handle every step.

Experts in Foreign Ownership Rules

Whether you’re opening an LLC, a branch of a foreign company, or applying through the GCC ownership pathway, we know exactly how to streamline the process.

Transparent Costs and Timelines

You’ll receive a clear breakdown of all government fees, legal costs, PRO services, and visa fees.

Industry-Specific Setup

Whether you’re in fintech, logistics, manufacturing, or services, we ensure your business complies with sectoral regulations.

Priority Processing

We utilize our network to expedite license applications, office registration, and bank account openings.

Multilingual Support

We assist clients from around the world in English, Arabic, and additional languages, ensuring a smooth and culturally aligned journey.

Start Your Company in Saudi Arabia Today!

Starting a foreign company in Saudi Arabia is easier when you have the right local partner. Our team will guide you from planning to execution, ensuring you stay compliant, on time, and fully operational. Book your free consultation now and let’s turn your Saudi expansion plan into reality.

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Frequently Asked Questions (FAQs)

Below are some frequently asked questions that are commonly asked:

Can I combine multiple business activities in one license?

It is possible to combine multiple business activities under one MISA license, depending on the level of compatibility between the activities. You could combine consultancy and IT services.

However, combining disconnected sectors, such as industrial manufacturing and hospitality, may require separate licenses or additional approvals. Therefore, always check with MISA (Ministry of Investment of Saudi Arabia) when applying.

How much does it cost to open a company in Bahrain?

The costs of company formation in Saudi Arabia vary depending on the entity type (e.g., LLC, branch, RHQ) and the business sector. A rough estimate includes:

MISA license fee: SAR 2,000 to SAR 11,000 annually
Commercial Registration (CR): SAR 2,000/year
Chamber of Commerce fees: SAR 1,000–5,000
Notarization & attestation: SAR 2,000–8,000
Legal & PRO services: Varies by consultant
Office lease: Minimum ~SAR 15,000 annually

ZATCA (tax) registration and compliance: May require VAT setup depending on turnover

Can a foreigner start a company in Saudi Arabia?

Definitely. With the 100% foreign ownership policy, foreign individuals and entities can register a company in Saudi Arabia through the Ministry of Investment, Saudi Arabia (MISA). Common structures are:

Limited Liability Company (LLC)
Branch of a foreign company
Joint Stock Company (JSC)
Regional Headquarters (RHQ)

Requirements include submitting audited financial statements, demonstrating industry experience, and obtaining the appropriate type of investment license.

What is the minimum capital for a Saudi LLC?

The minimum share capital required for a Saudi LLC depends on the license type:

General service LLC: No minimum capital required
Foreign-owned industrial company: SAR 1 million+
Entrepreneurial or SME licenses: May waive capital in some cases

While capital requirements are more flexible under Vision 2030 reforms, proof of capital injection is often needed before finalizing your Commercial Registration (CR).

Is it mandatory to hire Saudi nationals?

Yes, under the Saudization (Nitaqat) program, it is mandatory to hire a minimum number of Saudi nationals depending on:

Business sector
Company size
Number of expatriate employees

Companies must register with GOSI (General Organization for Social Insurance) and comply with HRSD (Ministry of Human Resources) rules to remain in good standing.

How can I form a company in Saudi Arabia?

To start a company in Saudi Arabia, follow these main steps:

Reserve a company name
Apply for a MISA license
Draft and notarize Articles of Association
Obtain Commercial Registration (CR)
Register with the Chamber of Commerce
Lease an office and obtain municipality approvals
Register with ZATCA, GOSI, and the Labor Department

Each step requires document attestation, translations, and coordination with government portals.

How long does it take to establish a company in Saudi Arabia?

The timeframe to register a company in Saudi Arabia varies:

Fast-track for startups or SMEs: ~15–20 working days
Regular LLC or JSC setup: ~30–60 working days
Branch office or RHQ: ~25–45 working days

Delays may occur due to document legalization, Saudization setup, or municipality inspections. We provide complete timeline breakdowns to all our clients.

Can you own 100% of a company in Saudi?

Yes, since 2018, foreign investors have been able to own 100% of a company in Saudi Arabia across most sectors, with no requirement for a Saudi partner. A MISA license enables this. However, specific sensitive industries, such as the media, military, and natural resources, may still have restrictions.

How much is a Saudi company visa?

The cost of a business visa or investor visa for Saudi Arabia includes:

Iqama fees: SAR 650–850 annually
Work permit: SAR 750–1,000
Medical insurance: SAR 500–1,500+
Dependent visa fees (if applicable)

Prices may vary by job title, sector, and company size. Visas are processed through the Ministry of Foreign Affairs (MOFA) and HRSD.

How to get a Saudi visa from Bahrain?

To apply for a Saudi business visa from Bahrain:

Contact a Saudi embassy or consulate in Manama
Submit your invitation letter from a registered Saudi company
Provide a passport, application form, photo, and proof of funds
Wait ~3–7 business days for approval
Business visas are typically issued as single-entry or multiple-entry for 30–90 days.

How long is a Saudi business visa valid?

A Saudi business visa is generally valid for:

Single-entry: 30 days from issue
Multiple-entry: Up to 6 or 12 months, with 30–90 day stay durations

Extension may be possible in some cases. Make sure to comply with MOFA and immigration rules during your stay.

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