Saudi LLC: No Minimum Capital Required to Start
Entrepreneurs in Saudi Arabia can establish a limited liability company (LLC) with a single founder or several, and without meeting any general statutory minimum capital, under the current Companies Law. The standard setup is completed electronically through the Ministry of Commerce and the Saudi Business Center.
Instead of a fixed minimum, the law requires that the company's capital be stated in its Articles of Association and be sufficient for its declared activities. Some sectors, foreign-investment rules, or licensing conditions may still set their own separate capital requirements, so founders should check the rules for their specific activity.
The typical process involves selecting the legal form and activities, reserving or choosing a trade name, preparing and approving the Articles of Association, paying the fees, and issuing the Commercial Registration. Activity-specific licenses and registrations are then completed. Listed fees are 1,200 ريال سعودي for the Commercial Registration and 500 ريال سعودي for publication, plus 15% VAT, with the service issued immediately once the electronic requirements are met.
Ongoing obligations
A Commercial Registration requires annual confirmation, with a fee of 1,200 ريال سعودي. Failing to submit the annual confirmation within 90 days after its due date can lead to suspension of the registration, so owners should track the deadline carefully.
The reform matters for the community because it lowers the barrier to formal entrepreneurship for residents and businesses alike. The current law also removed the former 50-shareholder cap, and the cited materials state no maximum number of shareholders for an LLC, giving founders greater flexibility in structuring ownership.
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