What it costs to open a company in Saudi Arabia in 2026

By Alliant Co., Dammam · Updated 20 October 2026

Government fees for a new Saudi limited liability company typically total SAR 4,400 to 15,500 in the first year, depending on the activity, the entity type and the city. Most foreign investors spend more on what surrounds those fees: a physical office address, attesting documents at home, visas and iqamas, and the first year of compliance. Below is each cost, with the official figure where one is published.

The short answer

CostTypical amountWhen
Commercial RegistrationSAR 1,200 – 2,000One-off
Articles of Association, notarised and publishedSAR 500 – 3,000One-off
Chamber of Commerce membershipSAR 2,000 – 5,000Every year
Municipal licence (Balady)SAR 500 – 5,000Every year
Company seal and stationerySAR 200 – 500One-off
Typical first-year government totalSAR 4,400 – 15,500Year one
Investment registration with MISA (foreign owners)Fee currently suspendedOne-off, then annual update

VAT at 15% applies to most government service fees. Our fee table on the company formation page is re-checked every quarter.

What changed in 2026

The MISA fee. Until recently, foreign investors paid SAR 2,000 for the investment licence plus Investor Relations subscriptions of SAR 10,000 in the first year and SAR 60,000 a year after that. In 2026 that fee is suspended. Under the Ministry of Investment's current Investor Guide, the fee for investment registration and its annual update is set by the Ministry when it approves the registration, and must be paid within 15 business days or the registration lapses. We confirm the live position with MISA when we prepare each file.

The Commercial Register. Under the new Commercial Register Law, a company receives one unified registration number beginning with 7, and the yearly renewal is replaced by an annual confirmation that the company's data is still correct.

What foreign investors pay on top

Document attestation and translation. Your home-country documents (company registration, board resolution, passports) are notarised, attested by your foreign ministry and the Saudi embassy, and translated into Arabic. The cost depends on your country, not on Saudi Arabia, and this stage usually takes two to four weeks.

An office address. A foreign-owned company needs a real address registered in the National Address system. Rent is the single biggest variable in a setup budget, and it is noticeably lower in Dammam and Al Khobar than in central Riyadh.

People. Every expatriate employee carries recurring government costs:

Cost per expatriate employeeAmount
Expat levy (work permit)SAR 800 a month (SAR 700 where Saudi staff equal or outnumber expatriates)
Iqama feeAbout SAR 650 a year
Dependent feeSAR 400 a month per dependent
Medical insuranceMandatory; priced by the insurer
GOSI (expatriates)2% occupational hazards, paid by the employer

Professional fees. Consultants charge for preparing the file and handling the portals. Ask for a fixed written quote that separates professional fees from government fees, so nothing is added later.

Minimum capital: the number that surprises traders

For most service and professional activities, Saudi law sets no fixed minimum share capital for an LLC, although banks expect working capital in the account.

Trading is different. Under the Ministry of Investment's Investor Guide (13th edition, June 2026):

  • Commercial activity with 100% foreign ownership requires minimum capital of SAR 30,000,000, a presence in at least three regional or global markets, a commitment to train 30% Saudi staff each year, and an investment plan of SAR 200 to 300 million over five years.
  • Commercial activity with a Saudi partner holding at least 25% requires minimum capital of SAR 26,666,667.

If you run a trading business in the UAE, Bahrain or Kuwait, these rules decide your structure before cost does. Many traders start with a Saudi distributor or a service-type entity and move to a full trading company once volume justifies it.

How long it takes

Two to three months end to end for most foreign investors. Investment registration usually takes 3 to 10 business days, and the Commercial Registration follows within a week. Most of the time goes on attesting documents abroad.

What it costs every year after that

  • Commercial Register annual confirmation
  • Chamber of Commerce renewal
  • Balady licence renewal
  • Iqama renewals, expat levy and medical insurance for each expatriate
  • VAT returns (monthly or quarterly), and zakat or corporate income tax within 120 days of the year end
  • Bookkeeping, year-end financial statements and, where required, a statutory audit
  • Filing approved financial statements on Qawaem within six months of the year end

Five ways to keep the cost down

  1. Choose your activity codes carefully. They decide your licences, your capital requirement and whether you need sector approvals.
  2. Check whether GCC ownership changes your route. GCC nationals can register many activities the way Saudis do, without investment registration. Confirm your activity first.
  3. Look beyond Riyadh. An Eastern Province address costs less, and Dammam is 45 minutes from Bahrain.
  4. Start attestation early. It is the slowest stage and the one a consultant cannot speed up.
  5. Get one written quote for the whole first year, including bookkeeping and tax filing, not only the registration.

Frequently asked questions

Government fees for a new LLC typically total SAR 4,400 to 15,500 in the first year. Office rent, document attestation, visas and professional fees come on top and vary by case.
No. The Investor Relations subscription of SAR 10,000 in year one and SAR 60,000 a year after is suspended in 2026. The Ministry sets any registration fee when it approves your file.
For most service activities there is no fixed legal minimum. For trading with 100% foreign ownership, the Ministry of Investment requires SAR 30 million, and SAR 26,666,667 with a Saudi partner holding at least 25%.
Yes, for most activities, after registering the investment with the Ministry of Investment. Some activities require a Saudi partner or set extra conditions.
Yes. A foreign-owned company needs a real address registered in the National Address system.
Two to three months end to end for most foreign investors, most of it spent attesting documents in the home country.
About SAR 800 a month in expat levy, an iqama fee of about SAR 650 a year, mandatory medical insurance, and SAR 400 a month for each dependent.

Talk to us

We set up foreign-owned companies from our Dammam office and handle the tax and government filings that come after the CR. See our company formation service or message us on WhatsApp.

Sources

  • Ministry of Investment, Investor Guide, 13th edition (June 2026): misa.gov.sa
  • Saudi Business Center, company establishment fees: business.sa
  • Ministry of Commerce, Commercial Register Law and Qawaem: mc.gov.sa
  • ZATCA, VAT, zakat and income tax deadlines: zatca.gov.sa

Prefer to talk first?

Message us on WhatsApp and we'll answer your questions directly.

Alliant Co. · CR 7003521841 · Yazid Ibn Malik, Al Khalidiyah Ash Shamaliyah, Dammam 32231 · info@alliant.sa · +966 55 754 2748 · Alliant Co. is a private company and is not affiliated with any government authority.