How to Set Up an LLC or JSC in Saudi Arabia

Entrepreneurs and investors looking to launch a company in Saudi Arabia can now complete much of the process online, thanks to streamlined procedures for establishing limited liability companies (LLCs) and joint-stock companies (JSCs). The route differs depending on whether the owners are Saudi/GCC nationals or foreign investors.

For Saudi and GCC partners, an LLC can be set up fully online through the unified Saudi Business Center platform, with login and identity verification via نفاذ and أبشر. The e-service issues the commercial register and articles of incorporation, can grant an immediate commercial license, and automatically opens files with the Ministry of Human Resources and Social Development, the Zakat, Tax and Customs Authority, the General Organization for Social Insurance, the national address, and the relevant Chamber of Commerce — all without visiting any branch.

Foreign-owned LLCs and JSCs first need a valid investment license from the وزارة الاستثمار, which typically takes around three to ten business days. The certificate must remain valid for at least 30 days when applying to establish the company. The usual sequence is: secure the license, reserve a trade name, draft and notarize the articles of association electronically through ناجز using نفاذ, then obtain the commercial register and Chamber membership, followed by registrations with ZATCA (including VAT at 15% where applicable), GOSI, and labor file activation via قوى.

Capital requirements

Under the new Companies Law, there is no statutory minimum share capital for standard LLCs, and most activities can be registered without a legal minimum. However, 100% of the declared capital must be deposited in an "under-formation" bank account before the commercial register is issued. In practice, foreign-investor LLCs in service sectors often use a range of about SAR 100,000 to SAR 500,000 to meet investment and banking expectations.

Closed joint-stock companies require a minimum share capital of SAR 500,000, at least two shareholders (one for wholly owned subsidiaries), and a board of at least three directors. At least 25% of that capital — SAR 125,000 — must be paid in cash into an under-formation account before the commercial register is issued.

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