How Foreign Investors Open a Company in Saudi Arabia

Oct 24, 2026•2 min read

Foreign investors planning to set up a business in Saudi Arabia now follow a streamlined, mostly electronic process that begins with the Ministry of Investment and ends with full operational licensing. The path reflects changes under the Investment Law that took effect in February 2025.

The first step is confirming eligibility: investors should check whether their intended activity is open to foreign ownership and whether sector-specific approvals, Saudi ownership requirements, or minimum-capital rules apply. Under the updated law, foreign investors generally complete investor registration with the Ministry of Investment rather than obtaining the former investment licence.

Applications are submitted electronically, with incorporation documents, articles, financial statements, board authorization, passports, ownership details, and Arabic legal translations where required. The registration fee is not a fixed published figure; the Ministry of Investment sets it on approval, and applicants must pay within 15 business days of notification.

Registration and fees

Investors then reserve a trade name if needed and prepare and electronically sign the articles of association through the Ministry of Commerce or the Saudi Business Center. Issuing the Commercial Registration (CR) for a foreign-owned LLC carries a published fee of SAR 1,200, plus SAR 500 in publication fees and 15% VAT. Entity fees differ by structure: SAR 1,200 for an LLC, SAR 1,000 for a general partnership, and SAR 1,600 for a joint-stock or simplified joint-stock company, before publication fees and VAT.

After the CR is issued, companies register with ZATCA for tax and zakat, with VAT registration required once the statutory threshold is met. A corporate bank account can then be opened using the CR, articles, tax registration, and signatory documents.

Finally, businesses obtain municipal licensing through Balady for the premises and activity, with additional approvals needed for regulated sectors such as construction, food, health, education, and finance. Employers also create an establishment file and use قوى for employment services and مقيم and أبشر for immigration tasks. For the Kingdom's growing expat and investor community, the clearer, digital-first process shortens setup times and reduces paperwork.

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