How to open an LLC in Saudi Arabia

The Limited Liability Company (LLC) is the most common business setup choice in Saudi Arabia, especially for international investors. It offers flexibility in ownership, limits personal liability, and allows a wide range of commercial activities, making it suitable for most types of business operations.

As part of the wider Vision 2030 push to attract foreign capital, the process of setting up an LLC has become clearer and faster. For many investors, it’s the most efficient way to launch a business in the Kingdom.

What Is an LLC in Saudi Arabia?

An LLC in Saudi Arabia is a private company structure that limits liability to the value of each shareholder’s investment. It can be set up with just one shareholder or as many as fifty. There’s no fixed minimum capital, though certain sectors like industrial or retail trade do require one. The structure is popular because it allows for full control while staying in line with the Kingdom’s company law.

Foreign ownership and MISA Licensing

Most foreign investors can now own 100% of an LLC in Saudi Arabia, provided the business activity isn’t restricted. This is done through a licence issued by the Ministry of Investment (MISA), which acts as the entry point for overseas companies. Under the updated Investment Law, due in 2025, MISA licensing will become even more streamlined, with fewer barriers to entry and broader sector access. While some industries still require local partners, the list is narrowing.

How to register an LLC in Saudi Arabia

Secure the MISA licence

Start by applying to the Ministry of Investment (MISA). You’ll need to submit your company’s Articles of Association, a business plan, and supporting documents like financial statements and ID copies. Once approved, the licence gives your company the green light to operate in Saudi Arabia.

1. Reserve your trade name - Submit your preferred business name to the Ministry of Commerce. It must meet local naming rules and be distinct from existing entities.
2. Draft and notarise the Articles of Association - These define the company’s purpose, structure, and management setup. Once drafted, the documents must be submitted through the online portal and then notarised.
3. Apply for Commercial Registration (CR) - With the MISA licence and notarised documents in place, you can apply for a CR. This officially registers your company with the Ministry of Commerce and allows you to start business activities.
4. Register with the Chamber of Commerce - Every company in Saudi Arabia must be listed with the local Chamber. This step involves paying the required fees and activating the company profile.
5. Open a corporate bank account - You’ll need a CR, MISA licence, and official documents to open a Saudi business account. This is needed for capital deposits, payroll, and operating expenses.
6. Arrange the General Manager’s visa and national address - Apply for an Iqama (residency) visa for your GM, and register your company’s official address with Saudi Post.
7. Register for tax, social insurance, Qiwa and other platforms - Complete the final setup steps by registering for VAT, GOSI, and the Qiwa labour portal.

The full process takes around six to eight weeks, assuming all documents are in order.

Compliance & Saudization

Once the company is up and running, there are a few key obligations to stay on top of. Most foreign-owned LLCs pay 20% corporate tax and charge 15% VAT on goods and services. You’ll also need to register with GOSI before hiring and meet Saudization targets, which vary depending on your sector and headcount. Annual filings, renewals and payroll reporting are mandatory, and it's best to keep everything in order to avoid delays with visa or licence renewals. Staying compliant isn’t complicated—but it does require consistency.

Costs to Set Up

Setting up an LLC in Saudi Arabia comes with a few core costs. You’ll need to budget for the MISA licence, commercial registration, and a municipal licence. Most setups require a minimum capital of SAR 500,000, depending on the activity. Office space is compulsory, and there are also fees for legal drafting, notary services, and Arabic translations. Costs vary by business type, but it’s worth planning for both the official fees and professional support early in the process.

How can Sovereign PPG help?

Sovereign PPG has in-depth knowledge of the Saudi market and strong connections with the relevant government departments. We can streamline the company incorporation process, managing all aspects from MISA licensing to visa, labour and tax registrations.

If you need assistance with setting up a company in Saudi Arabia or any other related onshore or offshore company setup, restructuring, local partner or PRO support matter in Abu Dhabi, Dubai, the wider UAE, Oman, Qatar or KSA, then please do get in touch with us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email us at ksa@sovereigngroup.com or complete the contact form below and we will be delighted to assist you.