New Rules for Foreign Investors Setting Up in Saudi Arabia

Oct 27, 2026•2 min read

Foreign investors looking to launch a business in Saudi Arabia now follow a streamlined process that begins with registration at the Ministry of Investment. Since February 2025, the previous general investment-license system has been replaced by investment registration, which most foreign investors must complete before starting commercial activities.

Applications are submitted through the Ministry of Investment electronic portal. Required documents may include an authenticated commercial registration of the foreign company, authenticated latest financial statements, articles of association, ownership details, and activity-specific paperwork. Registration fees are set by the Ministry after approval and are generally due within 15 business days of notification; failure to pay on time can invalidate the application.

Once registration is complete, the Saudi entity is established through the Ministry of Commerce and the Saudi Business Center. Online processing usually takes from immediately up to 72 hours, depending on the entity type and approvals.

Commercial registration fees

Fees vary by structure: SAR 500 for a sole proprietorship, SAR 1,000 for a general or limited partnership, SAR 1,200 for a limited liability company, and SAR 1,600 for a joint-stock, simplified joint-stock company, or foreign-company branch. Publication fees may reach SAR 500, plus 15% VAT where applicable. A commercial registration for an establishment is listed at SAR 500.

Under the current system, a commercial registration generally has no expiry date. Businesses must confirm their details annually at the same statutory fee, and confirmation can be submitted up to 30 days before the due date.

Before operating, businesses must also register with the Zakat, Tax and Customs Authority, including VAT where thresholds apply; register employees with the Ministry of Human Resources and Social Development, Qiwa, and the General Organization for Social Insurance; join the relevant Chamber of Commerce where required; and obtain a municipal license through Balady, with fees depending on activity, location, signage, and floor area. Sector approvals from the relevant ministry or regulator are required for fields such as financial services, insurance, healthcare, education, transport, telecommunications, media, tourism, industrial activities, food, pharmaceuticals, mining, energy, and security-related activities.

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