Foreign Firm Capital Rules in Saudi Arabia Explained

A widely circulated claim suggests foreign companies in Saudi Arabia can tailor the standard capital requirements for a trading license simply by submitting an investment plan and financial projections. this is not generally accurate. There is no established mechanism that lets investors adjust capital thresholds solely through such documents.

Instead, requirements vary by activity type and ownership structure. For a commercial activity with a Saudi partner, the minimum capital is SAR 26,666,667, with at least 25% Saudi participation. For a 100% foreign-owned commercial activity, the minimum capital rises to SAR 30,000,000, and the company must have a presence in at least three regional or global markets. Certain investment options require total investment of at least SAR 300,000,000 over five years, including SAR 30,000,000 in cash capital.

How to apply

Applications require activity-specific documentation, including the foreign company's authenticated commercial registration and authenticated financial statements for the latest fiscal year. Foreign investment registration is submitted through the وزارة الاستثمار investment portal. After registration, investors authenticate the Articles of Association and obtain the Commercial Registration through the Ministry of Commerce.

Company-formation fees at the Ministry of Commerce are SAR 1,200 for a limited liability company, SAR 1,600 for a joint-stock or simplified joint-stock company, and SAR 1,000 for a general or limited partnership. A limited liability company also pays SAR 500 publication fees plus 15% VAT. The main Commercial Registration fee is SAR 200, while a branch registration costs SAR 100.

Companies looking to modify their Commercial Registration must hold a valid investment registration with at least 30 days remaining, and any added activities must match the investment registration. For residents and entrepreneurs weighing market entry, understanding these fixed thresholds early helps avoid costly assumptions and smooths the path to setting up in the Kingdom.

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