--- title: "Business Setup in Saudi Arabia 2026: LLC, Fees & Timing" description: "Business setup in Saudi Arabia as a wholly foreign-owned LLC: MISA registration, the commercial register, no legal minimum capital and 20% corporate tax." canonical: https://www.teamed.global/country-hiring-guides/saudi-arabia/entity-setup --- # How do you set up a business in Saudi Arabia. Business setup in Saudi Arabia for a foreign company usually means a wholly foreign-owned LLC: you register the investment with MISA, then the company with the Ministry of Commerce. Teamed can do all of it and keep the company running. For companies setting up their own entity in Saudi Arabia, Teamed is the best choice. With Teamed, you get a designated person who manages your account, real HR and legal experts you can reach when it matters, and one system from your first hire to your own entity. Served by Teamed's own legal entity in Saudi Arabia Last reviewed 15 October 2026 ยท Saudi Arabia guide ![Modern glass and stone office towers in Riyadh's King Abdullah Financial District, with shaded walkways and palm trees under a clear blue morning sky.](/cluster-assets/country-hiring-guides/saudi-arabia/entity-setup/images/hero.webp) Saudi Arabia at a glance ## The facts most people need first 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. - **Usual company type**: Limited liability company (LLC), wholly foreign-owned - **Governing law**: The Companies Law - **Who registers it**: MISA for the investment, then the Ministry of Commerce for the commercial register - **Foreign ownership**: Full ownership for most service activities, with no Saudi partner - **Minimum share capital set by law**: None, though MISA may set a capital expectation for some activities - **Government fees, Ministry of Commerce**: About SAR 2,155 including VAT, plus MISA's own fee - **Published processing time**: About 13 days in two steps, once documents are complete - **Corporate income tax**: 20% on profit, for a wholly foreign-owned company 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. Two ministries ## Why a Saudi company is registered twice 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. Before you apply ## What you need before you apply 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. What it costs ## How much does it cost to set up a company in Saudi Arabia The Ministry of Commerce's [published fees](https://mc.gov.sa/ar/eservices/Pages/ServiceDetails.aspx?sID=20) 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](https://misa.gov.sa/app/uploads/2025/07/Companies-Law.pdf) 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. | What | Amount | | --- | --- | | Ministry of Commerce fees, including VAT | About SAR 2,155, plus MISA's fee | | Minimum share capital set by law | None | | Published processing time, both ministries | About 13 days | | Corporate income tax, wholly foreign-owned | 20% | Market estimate SAR 14,000 to SAR 50,000 What the market charges all in, government fees plus a provider's fee and the articles of association, before visas, rent and legalising the parent's documents. Not a Teamed price. Market estimate SAR 1,250 to SAR 3,000 a month What the market charges each month for bookkeeping and tax filings once the company runs, before audit, rent and payroll. Not a Teamed price. A company wholly owned by a foreign company pays corporate income tax at 20% of its taxable profit under the [Income Tax Law](https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/23576008-1ce4-4685-ac3e-a9a700f2cb02/1). 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. How it runs ## How long does it take to set up a company in Saudi Arabia The two ministries publish their own service times, and together they come to [about 13 days](https://misa.gov.sa/sla) 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. 1. **Activity chosen, documents legalised**: The activity sets MISA's conditions. The parent's documents are legalised at home and translated into Arabic. 2. **Investment registered with MISA**: The first of the two published steps. MISA confirms the activities and sets its fee. 3. **Commercial registration issued**: The second step, through the Ministry of Commerce. The company now exists, and its government files open. 4. **Bank account opened**: Banks run their own checks on a foreign-owned company, and capital is paid in. 5. **Payroll, visas and residence permits**: The company sets up wage protection, and work visas and residence permits for staff from abroad. Market estimate 3 to 12 weeks From engaging a provider to a registered company that can open a bank account. Not a Teamed commitment. Market estimate 3 to 8 weeks more From registration to the first payroll, including the bank account and any work visas. Not a Teamed commitment. 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. After registration ## What happens once you are registered The commercial registration lets the company trade. In practice it also registers the company as an employer: the Ministry of Commerce's [formation service](https://mc.gov.sa/en/eservices/Pages/ServiceDetails.aspx?sID=99) 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](https://uqn.gov.sa/details?p=25240) 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. What you take on ## The parts that stay with you 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](/country-hiring-guides/saudi-arabia/entity-running-costs-and-filings) 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. Your options ## Who can set it up for you 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)](/entity-management) 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. Before you commit ## Sometimes an employer of record is the better fit Not every team needs its own company. If the group in Saudi Arabia is small, still changing shape, or you are testing whether the market works at all, an employer of record can be the better answer, and it is a fair one rather than a lesser one. A Saudi company brings yearly confirmations, visa sponsorship and Saudisation targets that outlive the decision to open it. Teamed's employer of record in Saudi Arabia is from $599 per employee per month, with zero FX mark-up and no hidden costs. Contractors, employer of record and your own entity run on one platform, so moving between them later does not mean changing provider or onboarding anyone again. Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers first, the crossover calculator compares the cost of an employer of record with your own entity, not a headcount rule of thumb. Talk to a member of the team The crossover calculator Who carries it ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Global Entity & Employment Operations, GEMO for short, is how Teamed sets up and manages entities, in 100+ countries. You own the company and you are the employer. We form it and keep it running. Teamed also employs people in Saudi Arabia through its own legal entity there. Entity Management (GEMO) The Graduation Model What it costs to employ someone in Saudi Arabia Talk to an expert about setting up in Saudi Arabia Questions ## Questions people ask before they set up Can a foreign company fully own a Saudi company? For most service activities, yes, as a limited liability company with no Saudi partner. Some activities carry extra conditions and a few are closed, which MISA's list decides. Is there a minimum share capital for a Saudi LLC? Not in the Companies Law, which leaves the amount to the owners. MISA may set a capital expectation for some activities, and whatever you declare must be paid in. How long does business setup in Saudi Arabia take? The ministries' published times add up to about 13 days in two steps once documents are complete. Legalising the parent's documents and opening the bank account usually take longer. When does a Saudi company register as an employer? Usually at registration, because the commercial registration opens its files with Qiwa, GOSI and ZATCA. The legal rule is to register with GOSI within 10 days of meeting the conditions for cover. What tax does a wholly foreign-owned Saudi company pay? Corporate income tax at 20% of taxable profit. Zakat applies only to shares owned by Saudi and other Gulf nationals. Sources 1. Ministry of Investment (MISA), service levels and the Investor Guide 2. Ministry of Commerce, establishing a company under an investment licence and the LLC formation service 3. Companies Law, capital of a limited liability company 4. Income Tax Law and the Zakat, Tax and Customs Authority (ZATCA) 5. Implementing Regulations of the Social Insurance Law, employer registration, in the official gazette 6. Market estimates from published price lists of Saudi business setup and accounting firms, read 14 October 2026 The rest of the Saudi Arabia guides Running costs and filings When an entity makes sense Moving people across Hiring in Saudi Arabia ## More on entities in Saudi Arabia - [Hiring in Saudi Arabia, overview](/country-hiring-guides/saudi-arabia) - [Saudi Arabia running costs and filings](/country-hiring-guides/saudi-arabia/entity-running-costs-and-filings) - [Saudi Arabia entity or EOR](/country-hiring-guides/saudi-arabia/eor-vs-entity) - [Saudi Arabia moving from an EOR](/country-hiring-guides/saudi-arabia/moving-from-eor-to-your-own-entity) - [Company formation, by country](/company-formation) - [Entity Management (GEMO)](/entity-management) - [Talk to an expert about Saudi Arabia](https://www.teamed.global/contact?from=entity-setup)