Saudi Company Formation: Fees and Steps Explained

Oct 20, 2026•2 min read

Setting up a business in Saudi Arabia has moved almost entirely online, with commercial registration, articles of association, business-name reservation, and sector licenses handled electronically. Here is a clear breakdown of the fees, steps, and timelines for residents and entrepreneurs.

A main commercial registration for an establishment costs SAR 500 and is issued electronically through the Saudi Business Center after identity verification via نفاذ. Applicants enter the activity, address, capital, manager, and trade-name details, then pay by SADAD or card. A branch commercial registration costs SAR 100, and the establishment registration is generally issued immediately.

Company incorporation and fees

To incorporate a company, users select "Company Establishment" on the Saudi Business Center, choose the company type, enter partner and company details, authenticate partners through نفاذ, and pay the invoice. The articles of association and commercial registration are then issued electronically. A limited liability company carries a SAR 1,200 registration fee plus a SAR 500 publication fee; a general or limited partnership is SAR 1,000 plus SAR 500; and a joint-stock or simplified joint-stock company is SAR 1,600 plus SAR 500 — all subject to 15% VAT. Company issuance is listed as immediate, taking about 30 minutes.

Business names are reserved through the Ministry of Commerce company-services portal or the Saudi Business Center by selecting "Reserving a new business name." Names must comply with Saudi naming rules, and non-Arabic names are restricted in specified cases, such as for most entities other than qualifying foreign companies, globally recognized names, and joint-capital companies.

Why it matters: once a registration is issued, the integrated process can automatically create 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 Chamber of Commerce registration. Activities needing prior approval cannot operate on the commercial registration alone and require the relevant sector license from the responsible authority, with fees varying by activity. An optional instant commercial license may also be obtained alongside the registration.

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