New SEZ Company Formation Rules Now in Effect

Oct 27, 2026•2 min read

Businesses setting up in Saudi Arabia's special economic zones now operate under a dedicated company formation framework that took effect on 16 April 2026. The rules apply to four zones: King Abdullah Economic City, Ras Al-Khair, Jazan, and the Cloud Computing and Information Technology zone.

Under the SEZ Companies Rules, the permitted company form is a limited liability company, including a single-member LLC. Before incorporation, founders must hold a valid license from the Economic Cities and Special Economic Zones Authority, then complete the process through the Ministry of Commerce service.

Applications are submitted online via the Authority's e-services platform. Founders create or access an account, complete the form, upload documents, pay the applicable charges, and await review and issuance. The incorporation application must state the company name, capital, founder details, the names and nationalities of managers or directors, constitutional documents, payment evidence, and approved activities.

Required documents can include draft bylaws, partner commercial registration, a bank certificate for cash contributions, a certified valuation report for in-kind contributions, and activity-specific licenses. Individual partners must be at least 18 years old, and government employees cannot be partners. Activities requiring sector approval — such as those overseen by the Saudi Central Bank, the Insurance Authority, or the Capital Market Authority — need the relevant license.

Fees and timing

Ministry of Commerce incorporation fees for an LLC are listed at SAR 1,200, plus SAR 500 publication fees and 15% VAT. The service completion period is up to 72 hours once requirements are complete. Separately, the Authority's incorporation and commercial registration fees vary by activity and capital, with the final amount determined during approval. The commercial registration is issued through the Authority's online service after approval and payment.

The 2026 rules establish a separate corporate framework for the zones rather than applying the ordinary mainland Companies Law in the same way — a distinction investors should factor into their setup plans.

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