Company formation in Saudi Arabia in 2026 can take several weeks, being quite distinctive to the procedures available in other countries. Our team of agents can offer in-depth assistance on registering a company in Saudi Arabia with the local institutions.
| Quick Facts | |
|---|---|
| Types of companies | – sole trader, – private company, – limited liability company, – public company, – general and limited partnership |
Minimum share capital for LTD | SAR 100,000 (approx. USD 26,000) |
Minimum number of shareholders for LTD | At least one shareholder is required for setting up a business in Saudi Arabia |
| Minimum number of directors | 1 director is required to start a business in Saudi Arabia |
| Resident director required (YES/NO) | No |
| Timeframe for registration (approx.) | It takes around 2 months to register a company in Saudi Arabia |
| Corporate tax rate | 20% |
| VAT rates | Standard rate is 5%. There are no reduced VAT rates. |
| Shareholders annual meeting required (YES/NO) | Yes, at least one annual meeting must be held no later than 4 months from the end of the financial year. |
| Redomiciliation permitted (YES/NO) | No |
| Electronic signature (YES/NO) | Yes |
| Full foreign ownership allowed (YES/NO) | Yes, full foreign ownership is allowed in wholesale and retail in Saudi Arabia. |
| Access to double tax treaties (approx. number) | Yes, to approx. 55 double tax treaties |
| Tax exemptions (YES/NO) | Non-resident companies and investors are not liabile for Zakat. |
| Other tax incentives (YES/NO) | Investors who open a company in the regions of Ha’il, Jazan, Najran, Al-Baha, Al-Jouf, and the Northern territory benefit from tax concessions. Custom duty exemptions also apply to the import of raw materials and machinery that cannot be found in Saudi Arabia. |
What are the steps to open a company in Saudi Arabia as a foreign investor?
Here are the steps to consider if you are a foreign investor and want to open a company in Saudi Arabia in 2026:
- you must choose the legal form for your business and check the type of license required, in accordance with the relevant MISA (Ministry of Investment) category: these steps can be performed with the help of our local team, who can explain the aspects to pay attention to;
- then, the company registration documents must be prepared, and they consist of the Articles of Association of the entity;
- the documents will be filed with MISA to obtain the Foreign Investment License.
Following that, the regular business incorporation procedure will be completed with the Chamber of Commerce.
What are the documents required to register a company in Saudi Arabia?
Here is a list of the papers required for company registration in Saudi Arabia:
- valid passport or residence permit (Iqama), if the shareholders are Saudi residents;
- proof of local address;
- the share capital deposit certificate;
- the MISA license or initial approval, depending on the type of operations;
- ID or residence permits for the directors;
- Articles of Association.
Please note that foreign-issued documents must be translated into Arabic and then notarized. For this purpose, you can benefit from PRO services, which are mandatory for foreign investors.
Here is also an infographic on this subject below:
What are the share capital requirements for companies in Saudi Arabia?
Compared to other jurisdictions, registering a company in Saudi Arabia has strict rules about the share capital requirements for each type of entity, as follows:
- the minimum amount required for a limited liability company is 100,000 SAR,
- in the case of a public company, at least 10 million SAR is required,
- in the case of a private company, the minimum share capital is set at 2 million SAR,
- for a general partnership company, at least 500,000 SAR is imposed on the 2 partners,
- for a partnership limited by shares, a minimum capital of 2 million SAR is required.
The only business form that does not require a minimum share capital is the sole proprietorship.
What are the management requirements for a Saudi company?
Saudi companies must appoint at least one resident director. It is also possible to appoint a foreign national, as long as the person has or obtains an Iqama. For this purpose, our local specialists can help with:
- confirm the eligibility for the position;
- obtain the work visa;
- register the director for employment and the labor agreement on Qiwa;
- secure medical insurance;
- arrange for the medical examination;
- obtain the residence permit.
What are the most important post-registration requirements to comply with in Saudi Arabia?
After registration with the Chamber of Commerce, it is essential to complete the following:
- register for taxation and VAT with the General Authority of Zakat, Tax and Customs;
- register for social security with the General Organisation for Social Insurance;
- register the company’s address with the Saudi Post;
- enrol with the Ministry of Human Resources & Social Development for employment purposes;
- enrol with the Muqeem platform for residency and visa management purposes;
- apply for other licenses (if required).
What business forms can foreign companies employ in Saudi Arabia?
Foreign companies can establish their presence in this country through branch offices and subsidiaries.
How long does it take to register a company in Saudi Arabia?
The registration procedure at the level of 2026 can take between 4 and 8 weeks, depending on how soon the documents are ready.
Please contact our team of specialists in company registration in Saudi Arabia for more details related to the registration of a business form.