Foreign Company Setup in Saudi Arabia: 2026 Guide

Foreign investors looking to set up a company in Saudi Arabia can now own most businesses outright through an investment license issued by the Ministry of Investment. Full 100% foreign ownership is permitted across the majority of activities, with only a short negative list — including oil exploration and certain security and Hajj and Umrah activities — remaining restricted.

Capital requirements depend heavily on the activity. Standard limited liability companies (LLCs) have no fixed statutory minimum, and many service firms can proceed with paid-in capital as low as SAR 25,000 to SAR 500,000. Trading activities, however, face far higher expectations: a 100% foreign-owned wholesale, retail, or e-commerce company typically needs capital of around SAR 30,000,000. Retail and wholesale operators with a physical presence in multiple markets are commonly asked to commit SAR 200–300 million over five years, including at least SAR 30 million paid-in.

Licensing fees in 2026

The government investment license issuance fee is SAR 2,000 and a license may be issued for up to five years — for example, SAR 10,000 covering five years in a single payment. A first-year investor relations center subscription of SAR 10,000 applies as a one-time charge.

Older fee schedules cited subsequent-year subscriptions of around SAR 60,000, along with issuance and renewal charges near SAR 12,000 and SAR 62,000. However, many 2026 updates indicate these headline fees are suspended or waived for most investors, leaving the practical cost at roughly SAR 2,000 annually plus the SAR 10,000 first-year subscription.

Indicative first-year government costs for a basic services or light commercial license range from about SAR 12,000 to SAR 25,000 or more, depending on the sector and whether multi-year terms are chosen. Because public guidance is not fully consistent, investors should confirm the exact schedule at the time of application — a step that helps avoid common delays during company formation.

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