Saudi Company Formation: LLC, Branch & JSC Fees Explained

Entrepreneurs and investors in Saudi Arabia can now choose from several legal structures to establish a business, most of them registered electronically through the Ministry of Commerce website in both Arabic and English. The main options include a limited liability company (LLC), a joint-stock company, a simplified joint-stock company, companies set up under an investment license, and branches of foreign companies.

For a standard LLC, incorporation is immediate and costs SAR 1,200 for the commercial registration plus a SAR 500 publication fee, both subject to 15% VAT. A joint-stock company and a simplified joint-stock company are also incorporated immediately, at SAR 1,600 for the commercial registration plus the same SAR 500 publication fee, plus VAT.

Companies established under an investment license are processed within 72 hours. Their fees are SAR 1,200 for an LLC, SAR 1,600 for a joint-stock or simplified joint-stock company, and SAR 500 for publication, plus 15% VAT. For foreign-company branches, the available information lists SAR 600 for an LLC branch and SAR 400 for a general or limited partnership branch; a full fee schedule for every branch type is not established.

Why it matters

Ongoing commercial-registration fees are set at SAR 1,600 for a main registration of a joint-stock or simplified joint-stock company, SAR 1,200 for an LLC, and SAR 800 for a simple or joint limited partnership, with sub-registration fees of SAR 800, SAR 600 and SAR 400 respectively.

All incorporation services run through the Ministry of Commerce electronic website, and if online processing is unavailable after a full working day, a digital-branch alternative is offered. The framework reflects the current Companies Law and its implementing regulations, which took effect on 19 January 2023, giving residents and expat entrepreneurs clearer, faster routes to formalizing a business in the Kingdom.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving