Setting Up a Foreign-Owned Saudi LLC: Steps & Fees

Foreign investors looking to establish a limited liability company (LLC) in Saudi Arabia must follow a defined set of steps that combine registration with وزارة الاستثمار and incorporation through the Ministry of Commerce/Saudi Business Center. Here is what the process involves and why it matters for entrepreneurs and businesses planning to enter the Saudi market.

Before applying, investors should confirm that the intended business activity permits foreign ownership. Certain restricted or regulated sectors may require additional approvals or licences from the relevant sector regulator, so this check is an essential first step.

Registering the foreign investment

Foreign-investor registration is submitted electronically through وزارة الاستثمار before any investment activity begins. The application generally requires the foreign shareholder's certificate of incorporation or commercial registration, parent-company constitutional documents, a board or shareholder resolution approving the Saudi investment, and passport copies of directors, managers, and shareholders. All foreign documents must be authenticated through the issuing country, a Saudi diplomatic mission, and the Saudi Ministry of Foreign Affairs, with certified Arabic translations where they are not already in Arabic. A Saudi address and the proposed activity are also needed.

Name, Articles, and commercial registration

The company name is reserved through the Ministry of Commerce/Saudi Business Center, with the reservation period and any fee shown during electronic submission. The LLC Articles of Association are then prepared and signed electronically, stating the company name, activities, registered office, capital and ownership percentages, managers and their powers, financial year, and profit distribution.

After registration, the incorporation application is filed with the Ministry of Commerce/Saudi Business Center. Fees include SAR 1,200 for the LLC commercial registration and SAR 500 for electronic publication, with 15% VAT applied to these service fees — an estimated SAR 1,700 before VAT and SAR 1,955 including VAT, excluding name reservation, legalisation, translation, and other licences. Incorporation under an investment licence is processed within 72 hours, while standard LLC establishment may be processed immediately where applicable.

---

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