Foreign Investor Company Setup: Fees & Rules

Foreign investors looking to set up a company in Saudi Arabia now follow a clearer path with defined fees and timelines, whether they choose a limited liability company (LLC) or a branch of a foreign company. The process begins with the وزارة الاستثمار for investment registration, then moves to the business services portal for commercial registration.

For an LLC, the commercial registration service fee is SAR 1,200, plus a SAR 500 publication fee and 15% VAT. Setting up a foreign branch is handled through the branch-opening service on the business services portal, with a service fee of SAR 1,600. Investment registration itself has no published fixed fee in the current investor guidance; the amount is set by the ministry on approval and must be paid within 15 business days of the payment notice, otherwise the registration becomes void. Processing typically takes around 10 working days.

Capital requirements

Under the current companies framework, there is no statutory minimum capital for a standard LLC — capital is tied to the business activity rather than fixed by legal form. A branch also has no statutory minimum, though foreign-branch setups commonly require an allocated budget, and some practical guidance cites SAR 500,000 as the amount typically expected by banks or for licensing.

Activity-based thresholds still apply in certain categories, including SAR 30,000,000 for some 100% foreign commercial activity and SAR 26,666,667 for certain commercial activity with a Saudi partner. Minimum Saudi participation also applies in some sectors: 40% in communications, 30% in supportive communications, and 25% in professional activities with a Saudi partner.

After registration, companies must complete compliance steps covering tax, social insurance, labor, banking, and any sector-specific licensing. For the community of entrepreneurs and expat business owners, knowing these fees and rules upfront helps set realistic budgets and timelines when entering the Saudi market.

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