Saudi Arabia Company Registration | Set Up an LLC in Saudi Arabia
Planning Saudi Arabia company registration, or want to set up a company in Saudi Arabia to enter the Gulf Cooperation Council (GCC) market? Foreign investors most often set up a limited liability company (LLC). You first complete investment registration with the Ministry of Investment (MISA), then commercial registration with the Ministry of Commerce. The foreign ownership allowed depends on the activity: some activities allow 100% foreign ownership, and others require a Saudi shareholder.
The Companies Law allows 1 shareholder to set up an LLC, and the LLC chapter sets no statutory minimum capital, although general trading activities have separate MISA capital thresholds. Corporate income tax is 20%, VAT is 15%, and dividends paid to non-residents are subject to 5% withholding. NSS Group (戰國策集團) offers a one-stop Saudi Arabia company formation service, from activity classification and ownership assessment, MISA investment registration and commercial registration with the Ministry of Commerce to ZATCA tax registration and annual filings, and helps founders and companies from abroad set up their Saudi Arabia LLC.
The Investment Law treats local and foreign investors equally in like circumstances and guarantees that funds and profits can be transferred in and out without delay.
The Companies Law allows 1 individual or legal entity to set up an LLC. The LLC chapter sets no maximum number of shareholders and no statutory minimum capital.
Dividends paid to non-residents are subject to 5% withholding tax under domestic law. Corporate income tax is 20% and VAT is 15%.
The MISA Investor Guide gives an estimated processing time of 10 working days for investment registration, and a one-stop center connects residence and labor services.
Saudi Arabia?
Saudi Arabia is a member of the Gulf Cooperation Council (GCC). Under the current Investment Law, foreign investors who register with the Ministry of Investment (MISA) can invest in open activities, are treated equally with local investors, and can transfer funds and profits abroad without delay. The Companies Law allows 1 shareholder to set up an LLC. Corporate income tax is 20%, VAT is 15%, and dividends paid to non-residents are subject to 5% withholding. Shareholders should check whether their home country has a comprehensive income tax treaty with Saudi Arabia. Saudi Arabia is worth assessing for companies building a presence in the Middle East market.
in 3 steps
In Saudi Arabia, an LLC is set up by 1 or more individuals or legal entities, whose liability is limited to their share of the capital. It is run by 1 or more managers, who may or may not be shareholders. A single shareholder can set up a one-person LLC. Foreign investors first apply to MISA for investment registration on the Invest Saudi platform, then complete commercial registration with the Ministry of Commerce on the Business.sa platform.
After you register a Saudi Arabia company, you also need tax and VAT registration with ZATCA and labor and residence procedures through the one-stop center. Every year you must confirm the commercial registration details and renew the MISA investment registration. NSS Group confirms the activity conditions, prepares the legalized documents and schedules annual maintenance, so your Saudi Arabia company stays clear and compliant from setup to operation.
Apply for investment registration on the Invest Saudi platform under the ISIC 4 activity classification. Attach the foreign shareholder’s commercial registration and latest annual financial statements, legalized by the Saudi embassy, plus documents showing the ownership and capital conditions for the activity. Review takes an estimated 10 working days, and the fee must be paid within 15 working days after approval.
After investment registration, submit the LLC’s articles of incorporation on the Ministry of Commerce Business.sa platform, stating the company name, capital, shareholders and managers. Complete commercial registration and receive the commercial registration certificate. A one-person LLC uses articles of association instead.
Get a tax identification number from ZATCA. VAT registration is required when annual taxable supplies exceed SAR 375,000. Then, through the MISA one-stop center, which connects the Ministry of Justice, the Ministry of Human Resources and Social Development, the General Directorate of Passports, the General Organization for Social Insurance (GOSI) and the Ministry of Foreign Affairs, handle labor matters, the manager’s residence and visas.
service
- Company name search and reservation
- Preparation and filing of registration documents
- Drafting of governing documents
- Collection of the registration certificate
- Saudi Arabia bank account opening: documents and process tips
- Account opening document preparation
- Appointment booking and accompaniment
- Post-opening support
- Registered address
- Company secretary appointment
- Annual filing services
- Document custody and management
- Bookkeeping
- Tax filing and planning
- Financial statement preparation
- Audit arrangement
- Trademark search and assessment
- Trademark application filing
- Trademark maintenance and renewal
- Infringement protection advice
- Company change filings
- Share transfer support
- Company deregistration
- Legal advisory support
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- MISA activity classification, ownership and capital condition assessment
- MISA investment registration documents and embassy legalization coordination
- Ministry of Commerce Business.sa commercial registration and articles of incorporation
- ZATCA tax and VAT registration
- Annual income tax filing, commercial registration confirmation and MISA renewal reminders
Official fees: the MISA investment registration fee is set and notified by the Ministry of Investment on approval. Commercial registration and other fees are as published by the authorities. Other items are quoted.
Saudi Arabia company registration at a glance
The points people ask about most when registering a company in Saudi Arabia, checked against official sources (updated November 2026).
| Entity types | Limited liability company (LLC), one-person LLC |
|---|---|
| Registrar | Investment registration with the Ministry of Investment (MISA); commercial registration with the Ministry of Commerce |
| Foreign ownership | Depends on the activity: some allow 100%, others require a Saudi shareholder |
| Minimum capital | None under the Companies Law; MISA thresholds for some activities |
| Corporate income tax | 20% on the foreign-owned share; Zakat at 2.5% on the Saudi and GCC share |
| VAT | 15%, registration threshold SAR 375,000 |
| Timeline | MISA investment registration takes an estimated 10 working days; other steps depend on review progress |
| Annual compliance | File within 120 days after the year end; confirm the commercial registration every year |
| Who can help | NSS Group (go.ai.com.tw), free assessment and written quote |
Saudi Arabia company formation cost: fee breakdown
The official cost of registering a Saudi Arabia company is mainly the MISA investment registration fee and the annual renewal fee, which the Ministry of Investment sets and notifies on approval. Commercial registration with the Ministry of Commerce, labor and residence fees are as published by the authorities. Some activities also have MISA minimum capital thresholds. Each item is listed below so you can check quotes line by line.
| Item | Fee | Notes |
|---|---|---|
| MISA investment registration fee | Set and notified on approval | Must be paid within 15 working days after notice, or the investment registration lapses. |
| MISA annual registration renewal fee | Notified after assessment | The investment registration is renewed every year, and the fee must also be paid within 15 working days after notice. |
| Ministry of Commerce commercial registration | As published by the authority | Filed on the Business.sa platform. From the first anniversary of registration, the details must be confirmed every year, and the registration is suspended if this is 90 days overdue. |
| Activity-specific minimum capital | Depends on the activity | General trading with a Saudi shareholder: SAR 26,666,667. 100% foreign-owned trading: SAR 30,000,000. Other open activities follow the MISA guide. |
| Audit and income tax or Zakat filing | Quoted by bookkeeping volume | File with ZATCA within 120 days after the year end, with audited financial statements. |
| NSS Group advisory fee | Written quote after a free assessment | Based on the activity classification, shareholder structure, document legalization route and home-country tax planning. Every item is listed in the quote, with no hidden fees. |
Fees and capital thresholds follow the Ministry of Investment Investor Guide (13th edition, March 2026) and Ministry of Commerce notices. Filing deadlines follow the PwC tax summary (secondary source). The latest official notice prevails.
Saudi Arabia company tax and compliance: income tax, Zakat and VAT
A Saudi Arabia company is taxed according to its shareholders' nationality: the foreign-owned share pays corporate income tax, and the Saudi and GCC-owned share pays Zakat. VAT is 15%. Shareholders should also check whether their home country has a tax treaty with Saudi Arabia and whether controlled foreign company (CFC) rules apply.
| Item | Rule | Notes |
|---|---|---|
| Corporate income tax | 20% | Charged on adjusted net profit for the share held by non-Saudi, non-GCC persons. Oil and hydrocarbon production is taxed at 50% to 85%. |
| Zakat | 2.5% | Applies to the share held by Saudi and GCC nationals, calculated on the Zakat base (net worth). |
| VAT | 15% | Raised from 5% on July 1, 2020. Registration with ZATCA is required when annual taxable supplies exceed SAR 375,000. |
| Dividend withholding | 5% under domestic law | A tax treaty between Saudi Arabia and the shareholder's country may set a different cap. Where the domestic rate is lower, the domestic rate applies. |
| Interest and royalties | Interest 5%, royalties 15% | Treaty rates may differ. Service fees are taxed at 5%, 15% or 20% depending on the type. |
| Filing and advance payments | Within 120 days after the year end | Audited financial statements are required. If the prior year's tax was SAR 500,000 or more, 25% is paid in advance in each of the 6th, 9th and 12th months. |
| Other taxes | Real estate transaction tax 5% | Excise tax is 100% on tobacco and energy drinks and 50% on carbonated drinks. |
Rates and rules follow ZATCA notices and the PwC tax summary (secondary source). Treaty rates depend on the treaty between Saudi Arabia and the shareholder's country. Ask an accountant to assess your actual structure.
LLC or one-person LLC: which should you choose in Saudi Arabia?
Foreign companies setting up a company in Saudi Arabia usually compare an LLC with several shareholders and a one-person LLC with a single corporate shareholder. Both require MISA investment registration first.
| Item | Limited liability company (LLC) | One-person LLC |
|---|---|---|
| Legal status | Saudi legal entity; shareholders are liable up to their share of the capital | Saudi legal entity; the owner is liable up to the capital contributed |
| Shareholders | 1 or more individuals or legal entities | 1 individual or legal entity |
| Formation document | Articles of Incorporation | Articles of Association |
| Management | 1 or more managers, who may or may not be shareholders; a board of managers is possible | The owner holds the powers of the manager and the shareholders' meeting and may appoint a manager |
| Foreign investment conditions | MISA investment registration first, meeting the activity's ownership and capital conditions | MISA investment registration first, meeting the activity's ownership and capital conditions |
These are general principles. Choose based on your shareholders' background, business model and tax planning.
What foreign founders should know about setting up a company in Saudi Arabia
- Tax treaties: check whether your home country has a comprehensive income tax treaty with Saudi Arabia, and what caps it sets on withholding tax for dividends, interest and royalties.
- Who can apply: MISA accepts legal entities, foreign companies and individuals with Premium Residency. Investment registration requires the foreign shareholder's commercial registration and financial statements, legalized by the Saudi embassy, so individual investors usually need to consider using a company as the shareholder.
- Activity conditions: general trading activities have minimum capital and ownership rules for foreign investors (for example, a 100% foreign-owned trading activity needs SAR 30,000,000 in capital and operations in at least 3 markets). Confirm the activity classification before you apply.
- Annual maintenance: the commercial registration details must be confirmed on BUSINESS.SA every year, and the registration is suspended if not confirmed within 90 days after the due date. The MISA investment registration must also be renewed every year.
- Home-country filings: some countries require approval or a filing before residents or companies invest abroad, and some apply controlled foreign company (CFC) rules. Confirm this before you transfer capital to Saudi Arabia.
Why work with NSS Group on Saudi Arabia company registration?
NSS Group (go.ai.com.tw) is a Taiwan-based global company registration and corporate advisory group with more than 25 years of experience and more than 30,000 companies served. We provide company formation, bank account opening, accounting and tax, and annual maintenance in Saudi Arabia and many other countries and regions. We can confirm the MISA activity conditions and handle commercial registration with the Ministry of Commerce. Our fee is a written quote after a free assessment. Call the toll-free number 0800-003-191 (Taiwan) or use the form on this page.
Further reading
Sources: Ministry of Investment Investor Guide, 13th edition, March 2026 (English PDF); Ministry of Investment: updated Investment Law; Ministry of Investment: Frequently Asked Questions; Saudi Companies Law, Royal Decree No. M/132 (official English translation by the Bureau of Experts at the Council of Ministers, MISA website); Ministry of Commerce: notice on annual confirmation of commercial registration (2025-07-06); ZATCA: VAT registration FAQ; PwC Worldwide Tax Summaries – Saudi Arabia: Taxes on corporate income (reviewed 2026-07-29); PwC Worldwide Tax Summaries – Saudi Arabia: Other taxes (reviewed 2026-07-29); PwC Worldwide Tax Summaries – Saudi Arabia: Withholding taxes (reviewed 2026-07-29); PwC Worldwide Tax Summaries – Saudi Arabia: Tax administration (reviewed 2026-07-29). The latest official notices prevail. This page is general information, not legal or tax advice.
How much does it cost to set up a company in Saudi Arabia in 2026?
The MISA investment registration fee and annual renewal fee are set and notified by the Ministry of Investment on approval, and must be paid within 15 working days. The LLC chapter of the Companies Law sets no statutory minimum capital, but general trading activities have activity-specific thresholds, for example SAR 30,000,000 in capital for a 100% foreign-owned trading activity. Commercial registration, labor, residence and other fees are as published by the authorities, so the total cost depends on the type of activity.
Can foreigners own 100% of a Saudi Arabia company?
It depends on the activity. Foreign investors must first register with the Ministry of Investment (MISA). The MISA Investor Guide sets minimum Saudi ownership for some activities, for example 40% for telecommunications activities and 25% for professional services set up with a Saudi shareholder. A 100% foreign-owned trading activity needs SAR 30,000,000 in capital and operations in at least 3 markets. MISA accepts applications from legal entities, foreign companies and individuals with Premium Residency.
How long does it take to register a company in Saudi Arabia?
According to the MISA Investor Guide, investment registration takes an estimated 10 working days, and the registration fee must be paid within 15 working days after approval. After that come commercial registration with the Ministry of Commerce, a tax number from ZATCA, and labor and residence procedures. There is no official overall timeline. The actual time depends on document legalization and review progress.
Do I need to travel to Saudi Arabia to set up a company?
MISA investment registration and commercial registration with the Ministry of Commerce can both be done on online platforms, and the foreign shareholder’s documents must be legalized by the Saudi embassy. However, the manager’s residence, labor and visa procedures go through the MISA one-stop center and authorities such as the General Directorate of Passports. Whether you need to travel depends on the manager arrangements and each authority’s requirements.
What taxes and annual filings does a Saudi Arabia company have in 2026?
The foreign-owned share is subject to corporate income tax at 20%, and the share owned by Saudi and GCC nationals is subject to Zakat at 2.5%. VAT is 15%, and registration is required when annual taxable supplies exceed SAR 375,000. Income tax and Zakat returns are due within 120 days after the year end, with audited financial statements. The commercial registration must be confirmed every year, the MISA investment registration renewed every year, and the shareholders’ meeting held within 6 months after the year end.
Who can help me register a company in Saudi Arabia?
NSS Group (go.ai.com.tw) can help. NSS Group has more than 25 years of experience and has served more than 30,000 companies. Our one-stop Saudi Arabia company registration service covers MISA activity classification and ownership assessment, investment registration documents and embassy legalization coordination, commercial registration and articles of incorporation with the Ministry of Commerce, ZATCA tax and VAT registration, and reminders for annual filings and registration renewals. Our fee is a written quote after a free assessment. Toll-free (Taiwan): 0800-003-191.