How do you set up a business in Saudi Arabia.

This guide covers a limited liability company owned entirely by one foreign company, registered through the Ministry of Investment (MISA) and the Ministry of Commerce. It is the usual route for a foreign group that wants to employ people in the Kingdom. Teamed sets these companies up through GEMO, its Global Entity & Employment Operations service.

The fee total and the processing time add up the ministries' own published fees and service times, and MISA does not publish its own fee, so we are waiting on direct confirmation before we treat them as settled.

A foreign-owned company in Saudi Arabia needs two approvals, in a fixed order. First the Ministry of Investment registers the investment and the activities the company will carry out. Only then can the Ministry of Commerce issue the commercial registration, the CR, which is the moment the company exists.

For most service activities a foreign company can now own all of the LLC, with no Saudi partner. Some activities carry extra conditions, such as experience requirements or a minimum capital, and a few are closed to foreign ownership. MISA's list decides which applies to you, so the activity is the first decision to make.

Start with the activity, because it decides the conditions MISA applies and part of what you pay. Then the parent's paperwork. Your company abroad has to prove that it exists, who owns it and who may sign for it, usually with its certificate of incorporation, its constitution, a board resolution and recent accounts.

Those documents need to be legalised before Saudi authorities will accept them, through an apostille or a chain of attestations at home and at the Saudi embassy, and translated into Arabic. This is the step that most often adds weeks, and it adds cost outside the estimates below, because it depends on offices outside the Kingdom.

The company also needs a trade name, a manager named in its articles, Arabic articles of association, and a Saudi address. Banks will want to identify the manager and the owners properly, so choose someone who can be reached.

The Ministry of Commerce's published fees for registering a foreign-owned LLC, publishing its contract and reserving an Arabic trade name come to about SAR 2,155 including VAT. Chamber of Commerce membership is created at the same time and is free at first. MISA charges its own registration fee, which it sets when it approves the application.

Capital works differently from many countries. The Companies Law sets no minimum for an LLC and leaves the amount to the owners, though whatever you declare must be paid in. MISA may set a capital expectation for some activities, and banks often expect a figure that fits the business.

A company wholly owned by a foreign company pays corporate income tax at 20% of its taxable profit under the Income Tax Law. Zakat applies only to the share owned by Saudi and other Gulf nationals, so it does not apply here. Payments the company makes abroad can carry withholding tax.

The two ministries publish their own service times, and together they come to about 13 days once your documents are complete. That time comes in two steps: MISA's investment registration first, then the Ministry of Commerce's commercial registration, the quicker of the two. The parent's paperwork before them and the bank account after them usually take longer.

Setting up your own entity takes anywhere from a few weeks to several months, depending on the country's registry and how fast you can open a local bank account. In Saudi Arabia the ministries are quick once the file is complete, and the parent's paperwork and the bank decide most of the wait.

The commercial registration lets the company trade. In practice it also registers the company as an employer: the Ministry of Commerce's formation service opens its files with the labour ministry's Qiwa platform, the social insurance agency (GOSI) and the tax authority (ZATCA) when the CR is issued. The legal rule behind it is that an employer must register with GOSI within 10 days of meeting the conditions for cover, so check that the file is open before your first hire.

Salaries are then paid through the wage protection system, from the company's own bank account into each employee's account. That is why the bank account matters so much: without it there is no lawful way to run payroll.

Staff from abroad need work visas and residence permits sponsored by the company. Saudisation rules, known as Nitaqat, also measure the company's mix of Saudi and foreign staff, so plan that mix before you hire.

The first is the register. The commercial registration is confirmed every year, the financial statements are filed online, and tax returns go to ZATCA. A registration that is not confirmed can be suspended. The guide to running a company in Saudi Arabia sets out what recurs.

The second is people. The company sponsors each foreign employee's visa and residence permit, pays an end-of-service award when employment ends, and answers for paying wages on time. Those duties follow the company, whoever runs its paperwork.

There are four realistic routes, and they suit different companies.

You can apply yourself through MISA's investor portal and the Ministry of Commerce's online services. It suits a founder with no staff, a simple service activity and time to manage the legalised paperwork and the follow-up questions.

A business setup consultant is the quick route for a company with no employees yet. Many handle the MISA registration, the articles and the CR for a fee.

A law firm or corporate-services firm suits complex group structures, activities with extra conditions, or tax planning across borders.

For companies that will employ people in Saudi Arabia, Teamed is the best choice. Teamed gives you real HR and legal experts you can reach when it matters, pricing with no hidden costs, and payroll, visas and filings handled on one platform. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in Saudi Arabia.

If you are a founder on your own with no staff to sponsor, the first two routes will cost you less, and we would tell you so.