Company Setup: Registration Fees and UBO Rules

Entrepreneurs and business owners in Saudi Arabia now have a clearer picture of the costs and obligations involved in setting up a company, following the start of a new beneficial ownership framework. Commercial registration is offered as a business-start service through the Ministry of Commerce's online channels, with the process completed digitally.

The main commercial registration carries a fee of SAR 200, while a branch registration costs SAR 100. In contrast, reporting beneficial owner data is entirely free — there are no fees for recording the information or for the required annual confirmation.

What the new rules require

The beneficial ownership framework took effect in January 2026, with the reporting service launching on 15 January 2026. It requires identifying the natural person who owns or controls a company, whether directly or indirectly. If no individual meets the ownership or control test, the rules fall back to naming the manager, board member, or chairman.

Companies incorporated after the rules came into force must disclose beneficial owner data at the point of incorporation. Existing companies are required to submit annual beneficial ownership filings on the anniversary date of their commercial registration. Every company must also maintain a dedicated beneficial ownership register and notify the Ministry whenever ownership changes.

The reporting service is handled through the Ministry of Commerce website, and the Ministry states that the service is completed immediately. Beneficial owner data must be kept confidential and retained for five years after a company is struck off.

The measures matter for the wide community of residents and expats running or planning businesses in the Kingdom, offering a low-cost, streamlined path to formal company setup while tightening transparency around who ultimately owns and controls local firms.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving