Foreign-Owned Companies: Setup Rules & Fees

Foreign investors looking to establish a company in Saudi Arabia must follow a defined set of registration and licensing steps, starting with the Ministry of Investment and ending with a valid commercial registration and sector-specific approvals.

In most cases, a foreign-owned company must first obtain an investment license from the Ministry of Investment before incorporation, unless the activity is exempt or governed by a separate regime. Applications are submitted through the Ministry's electronic investor services using Nafath. Investors are typically asked to provide constitutional documents, parent-company registration and financial records, audited financial statements where required, proposed activities, ownership details, and authorized-manager information.

Once the Ministry grants approval, incorporation is completed through the Saudi Business Center and the Ministry of Commerce. Current establishment fees 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. Each is subject to an additional SAR 500 publication fee plus 15% VAT. A branch of a foreign company is set up through the Saudi Business Center with a listed service fee of SAR 1,600.

A commercial registration is issued after the articles of association are authenticated and incorporation requirements are met. Under the 2026 Commercial Register system, the previous fixed-expiry model is replaced by continuing registration that requires an annual confirmation of registered information, with government fees depending on entity type and service.

Further steps that matter

Companies must register with the relevant Chamber of Commerce, obtain a municipal license through Balady where premises or activity require one, and secure activity-specific approvals from the competent regulator. Common additional registrations include ZATCA tax registration, VAT registration when the statutory threshold applies, GOSI registration for employees, and Qiwa registration for labor services. Employees and resident managers generally need valid residency and work authorization processed through the Ministry of Human Resources and Social Development, Qiwa, Absher, and Muqeem. Regulated fields may require separate licenses from bodies such as the Saudi Central Bank, the Capital Market Authority, the Food and Drug Authority, or the Ministry of Tourism.

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