How Foreign Investors Open a Company in Saudi Arabia

Foreign investors looking to establish a company in Saudi Arabia must first secure an investment license from the وزارة الاستثمار before they can register a commercial entity with the Ministry of Commerce. The process runs almost entirely online through a set of official government portals, making it more accessible to residents and international companies alike.

The most common legal structure for foreign investors is a Limited Liability Company (LLC), requiring at least one shareholder. Minimum capital depends on the chosen activity, and following reforms taking effect through 2025–2026, many service activities no longer require high minimum capital.

The main steps

The first step is choosing a legal form and classifying the business activity using ISIC Rev. 4 codes on the investment portal, while confirming the activity is not on the foreign investment negative list. Investors then prepare shareholder documents — including the parent company's registration, articles of association, a shareholder resolution, and audited financial statements — all notarized, legalized up to the Saudi mission, and translated into Arabic by certified translators.

Next, investors create an account on the Invest Saudi portal and submit the license application, entering capital, ownership, and activity details, then pay the fees electronically via SADAD. After the license is issued, incorporation documents are notarized through ناجز, the commercial registration is completed with the Ministry of Commerce, and the labor file and work visas are opened via قوى. Registration with GOSI and the Zakat, Tax and Customs Authority follows, at no fee.

License fees in 2026

The investment license is issued at SAR 2,000 There is a one-time first-year Investor Relations Centers subscription of SAR 10,000, and SAR 60,000 License amendments — such as adding partners, increasing capital, or adding activities — cost SAR 2,000 plus commercial registration update fees.

Understanding this pathway helps foreign investors and expat entrepreneurs plan realistic timelines and budgets before entering the Saudi market.

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