Saudia Company Formation
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Company setup · Limited liability company

Foreign-owned LLC formation in Saudi Arabia, with you holding 100% of the shares.

Most activities in Saudi Arabia are open to full foreign ownership. You can own the LLC personally, through your company abroad, or both. We check your activity first, then take the company from MISA registration to a working CR with tax, payroll and a bank file behind it.

  • Your activity checked against MISA’s rules before any fee is paid
  • Filed under a power of attorney, so you don’t need to fly in
  • One person handles your file from the first call to handover

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  • 5.0 on GoogleFrom 6 reviews of our Lahore office

  • 47 daysOne client’s company, start to finish

  • Any nationalityApostille or embassy route planned

  • Fixed feeGovernment fees shown separately

  • Activity codes
  • Shareholder structure
  • Apostille or legalisation
  • Arabic translation
  • MISA registration
  • Articles of association
  • Commercial Registration
  • ZATCA
  • GOSI and Qiwa
  • Bank file
  • GM residency

The basics

What is a foreign-owned LLC in Saudi Arabia?

A foreign-owned LLC is a Saudi limited liability company whose shares are held by non-Saudi individuals or companies, registered with the Ministry of Investment (MISA) and the Ministry of Commerce. Under Article 156 of the Companies Law, owners answer for its debts only up to their share of the capital, and the company trades in its own name across the Kingdom.

Of the three set-up routes in our Saudi company formation services, the LLC is the one we recommend to most founders. It keeps Saudi contracts, staff and debts inside a Saudi company and away from your business at home, and it works whether you own it alone or with partners.

Infographic: key facts about a foreign-owned LLC in Saudi Arabia
Six facts to know before you choose a structure.
Law
Companies Law, in force since 19 January 2023
Who can own it
One or more people or companies, any nationality (Article 156)
Foreign share
Up to 100% in activities open to foreign investment
First filing
MISA investment registration (the old MISA licence)
Second filing
Commercial Registration with the Ministry of Commerce
Typical time
A few weeks after your documents are legalised; one client: 47 days

Worked example

How a part-foreign LLC’s profit is taxed line by line

An LLC owned 70% by a UK company and 30% by a Saudi national pays two different taxes on the same profit: the foreign 70% pays corporate income tax at 20%, and the Saudi 30% pays zakat at 2.5% of its zakat base. The table follows each share of the profit through, before deductions and treaty relief.

Illustrative tax split, as a share of taxable profit, for a Saudi LLC owned 70% foreign and 30% Saudi
LineForeign shareholder (70%)Saudi shareholder (30%)
Share of taxable profit70% of the profit30% of the profit
Tax that appliesCorporate income tax at 20%Zakat at 2.5% of the zakat base
Tax due14% of total profit (20% of the 70% share)2.5% of the Saudi share of the zakat base, not of profit
Left to distribute56% of total profitDepends on the zakat figure
If paid out as a dividend5% withholding, or 2.8% of total profit (a tax treaty can cut this)No withholding for a Saudi resident

This is an illustration of how the split works, not tax advice for your company. Zakat is calculated on a zakat base built from the balance sheet, so it can be higher or lower than 2.5% of profit. A 100% foreign-owned LLC pays only the left-hand column. See ZATCA and VAT registration for the filings.

Three ways to work with us

Choose how much of the LLC you want us to handle

We take on a foreign-owned LLC in one of three scopes: the complete formation, registration up to the CR, or finishing a file another provider started. Most clients take the full route, because a CR on its own can’t invoice, pay salaries or open an account. If you already have a Saudi accountant, the registration-only option leaves the activation to them.

Most chosen

Full route

Complete LLC formation

From the activity check to an LLC that is registered, taxed, banked and able to hire.

  • Activity and shareholder planWeek 1
  • Documents legalised and translatedYour country
  • MISA, articles and CRSaudi Arabia
  • ZATCA, GOSI, Qiwa, bank fileActivation

For founders who want one team on the whole job.

Quote the full route
Registration

Legal core

LLC registration up to the CR

MISA registration, articles drafted for your shareholders, and the Commercial Registration.

  • Activity checkWeek 1
  • MISA registrationFiled
  • Articles of associationDrafted
  • Commercial RegistrationIssued

For founders with a Saudi accountant lined up.

Quote registration
Rescue

Half-finished file

Finish an LLC someone else started

An LLC with a CR that still can’t trade, or a MISA file that stalled. We audit it and finish it.

  • Record-by-record auditWritten
  • ZATCA and VATRegistered
  • GOSI, Qiwa, MuqeemSet up
  • Bank file and GM residencyPrepared

For LLCs started by another provider.

Quote a rescue

Quotes arrive in writing within one working day, with government fees listed apart from ours.

The five stages

How to set up a foreign-owned LLC in Saudi Arabia

A foreign-owned LLC in Saudi Arabia is set up in five stages, from the activity plan to a company that can invoice and hire. You approve a written plan and sign one power of attorney, so we can file every stage without you travelling. The MISA investment registration comes first for every foreign shareholder, and the Commercial Registration (Sijil Tijari) is what creates the company. Most delays we see are document mistakes, so stage two gets the most checking.

  1. Step 01

    Activity and shareholders

    Your business is matched to Saudi activity codes, foreign-ownership rules and any capital minimum, and the shareholder split is agreed.

    Result: a written plan and fixed quote

  2. Step 02

    Documents

    Shareholder papers are notarised, apostilled or legalised in your country and translated into Arabic.

    Result: a filing-ready pack

  3. Step 03

    MISA registration

    The investment registration is filed on MISA’s e-services portal. MISA notifies its fee on approval, and an unpaid fee after 15 business days voids the registration.

    Result: your MISA registration

  4. Step 04

    Articles and CR

    Trade name reserved, articles signed through the Saudi Business Center, CR issued by the Ministry of Commerce, then the National Address registered with SPL and the Chamber of Commerce file opened.

    Result: a registered LLC

  5. Step 05

    Activation

    ZATCA, GOSI, Qiwa and Muqeem set up, bank file submitted, general manager’s residency started.

    Result: an LLC that can invoice and hire

Infographic: the five stages of forming a foreign-owned LLC in Saudi Arabia
Five stages from the first call to a company that trades.
Infographic: documents a company or individual shareholder needs for a Saudi LLC
The pack for each kind of shareholder.

Paperwork

Which documents does a Saudi LLC need from you?

Each shareholder in a Saudi LLC provides four or five papers, and the set depends on whether that shareholder is a company or a person. Every paper is notarised, then authenticated for Saudi use, then translated into Arabic. Saudi Arabia has been in the Apostille Convention since 7 December 2022, so papers from the UK, the US, India, Pakistan (since March 2023) or Bangladesh (since March 2025) take an apostille at home; papers from the UAE, Qatar or Kuwait, which are outside the Convention, still go through the Saudi embassy. You start by sending us PDFs; originals are needed only where the apostille requires them. Founders in Pakistan can see the local version on our Saudi LLC from Pakistan page.

When a company holds the shares

  • 01

    Certificate of incorporation or registry extractIssued recently by your company registry

  • 02

    Articles or constitutionThe version in force, certified

  • 03

    Financial statementsMISA asks for the last fiscal year

  • 04

    Parent company’s registrationOnly if your shareholder company’s own parent has a different nationality

  • 05

    Board resolutionApproving the Saudi LLC and naming its manager

  • 06

    Power of attorneyFor the people filing on your behalf

When a person holds the shares

  • 01

    PassportEach shareholder and the manager

  • 02

    Proof of addressA recent utility bill or bank letter

  • 03

    Bank reference or statementShows where the capital comes from

  • 04

    Power of attorneySigned before a notary, then apostilled or legalised

Before you start

Three decisions that shape your LLC

Three decisions shape a foreign-owned LLC more than any filing: who owns and runs it, which activity it registers, and what it costs to keep running. Get these right and the filings are routine. Get them wrong and you are amending a registration six months later.

Founder signing Saudi LLC formation papers
The articles fix who owns what and who signs.

Who owns it and who runs it

One shareholder is enough (Article 157), and shareholders can be people, companies or both. Day-to-day control sits with the manager, who need not own a share and can be a foreign national. Article 160 lets the partners appoint one or more managers in the articles or by separate contract, and Article 162 makes that appointment binding on outsiders only once it is on the Commercial Register.

Our advice: if the manager will live in Saudi Arabia, name them at formation. Banks look for a resident signatory, and MISA’s guide lists a CR showing the general manager’s name among the papers for that manager’s residency permit.

Infographic: MISA capital and presence rules for activities with special conditions
Capital and presence rules from MISA’s Investor Guide (2026).

Which activity you register

The Companies Law sets no capital figure for an LLC; Article 174 leaves the amount to the partners. MISA does set figures for a handful of activities: a 100% foreign trading company needs SAR 30 million and a presence in three markets, and a 100% foreign engineering consultancy needs a presence in four countries and ten years of experience.

Most service activities have no MISA minimum at all, and software and IT activities are not on MISA’s special-conditions list. That is why the activity check comes before anything else. Trading has its own page: trading licence in Saudi Arabia.

Finance review for a new Saudi company
Hiring adds GOSI and the levy for foreign staff.

What it costs to keep running

After formation, the money a foreign-owned LLC keeps paying goes mostly to tax and payroll. Profit owed to foreign shareholders pays 20% income tax. Each foreign employee adds 2% of salary to GOSI, plus the monthly government levy on expatriate staff.

The CR and the MISA registration are both updated yearly instead of renewed. Put those dates in a calendar on day one; our PRO and compliance service can keep it for you.

Choosing a structure

LLC, branch or regional headquarters: which one fits?

Foreign businesses enter Saudi Arabia through a foreign-owned LLC, a branch of the foreign company or a regional headquarters. One question decides between them: should the Saudi debts and contracts sit with a new Saudi company, or with the parent abroad?

Saudi LLC compared with a branch of a foreign company and a regional headquarters
QuestionForeign-owned LLCBranch of a foreign companyRegional headquarters
Legal statusA separate Saudi companyPart of the foreign parentCompany or branch with an RHQ licence
OwnersYou, your company, or bothThe foreign parent onlyA multinational group
Who carries the debtsThe LLC, up to its capitalThe parentDepends on its legal form
Can it sell in Saudi Arabia?Yes, within its activitiesYes, the parent’s activitiesOnly RHQ services
Tax on profit20% on the foreign share; zakat on any Saudi or GCC share20%, plus 5% on profit sent to the parent0% on qualifying RHQ income for a renewable 30 years

Pick the LLC unless you have a reason not to. A branch suits a parent delivering its own contract; an RHQ suits a group running the Middle East from Riyadh. Everyone else is better served by a company of their own.

From our clients

An LLC formed in 47 days

Sophia Mia’s beauty shop in Saudi Arabia was formed in 47 days from start to finish, and she said so in the Google review below. The certificates below are real registrations we have handled, with client details removed.

"I was looking for someone who can not only help me through setting up my beauty shop in Saudi Arabia but also walk me through the process. Luckily I met Faiz and the things became easier and easier. I got my company in 47 days, before the promised date."
Sophia Mia · Google review, 4 Aug 2026 · beauty shop, Saudi Arabia
Saudi Commercial Registration certificate in Arabic, client details redacted
Commercial RegistrationMinistry of Commerce
MISA investment registration certificate, client details redacted
MISA investment certificateMinistry of Investment

Costs

What decides the cost of a foreign-owned LLC?

The cost of forming a foreign-owned LLC in Saudi Arabia has four parts: Saudi government fees, notary and apostille fees in your country, certified Arabic translation, and our fixed fee. The activity and your shareholders’ countries move the first three, so we quote them for your case rather than publish a figure that would be wrong for most people. MISA notifies its own fee only when it approves the registration, payable within 15 business days, and your quote shows it as a separate line. Our part is fixed for the agreed scope; how we work sets out what that fee covers.

  • MISA registration fee, notified on approvalSaudi government
  • Commercial Registration, trade name, ChamberSaudi government
  • Notary and apostille or embassy feesYour country
  • Certified Arabic translationPer document
  • Our fee for the option you pickFixed

LLC questions · 52

Foreign-owned LLC questions founders ask us

Answers reflect the rules we work with in October 2026. Anything that depends on your activity is confirmed for you in writing.

01Owning the LLC

Can a foreigner own 100% of an LLC in Saudi Arabia?

Yes, in most activities. Since the Investment Law took effect in February 2025, a foreign investor registers with MISA and can hold every share in any activity open to foreign investment. A short excluded list stays closed, and a few activities need a Saudi partner.

Can a Saudi LLC have a single shareholder?

Yes. Article 157 of the Companies Law allows a one-owner LLC, whether the owner is a person or a company. You can add partners later by amending the articles and the MISA registration.

Can my company abroad and I both be shareholders?

Yes. A split such as 60% to your holding company and 40% to you personally is common. Each shareholder provides its own documents, and the split is written into the articles and the MISA registration.

Do I need a Saudi sponsor to own an LLC?

No. The sponsor model does not apply to a MISA-registered LLC. Only listed activities, such as professional firms set up with a Saudi partner, need a Saudi shareholder, and there the Saudi share must be at least 25%.

Which activities can’t a foreign-owned LLC carry on?

Activities on the prohibited list stay closed to foreign owners. The list is issued by the standing ministerial committee that examines foreign investments, as the Investment Law’s Implementing Regulations describe, and it changes, so we check your activity against the current version before anything else.

Is a Saudi LLC like a UAE free-zone company?

No. A free-zone company is limited to its zone. A Saudi LLC registered with MISA trades across the whole Kingdom and contracts directly with Saudi customers.

Can a GCC national own a Saudi LLC on Saudi terms?

GCC nationals are treated close to Saudi nationals for many activities and their share pays zakat rather than income tax. The rules vary by activity, so we confirm them case by case.

What happens to my business at home?

Nothing changes. The LLC is a separate company. Your home business can own it, sell services to it and receive dividends from it, taxed under both countries’ rules.

Can I sell my shares later?

Yes. Under Article 178 the other partners get 30 days to buy before an outsider can, unless the articles set a longer period. The transfer is then filed with MISA as an ownership amendment and must reach the CR within 30 days.

02Capital and money

What is the minimum capital for a foreign-owned LLC?

The Companies Law sets no figure for every LLC. MISA sets minimums for a few activities, such as SAR 30 million for a 100% foreign-owned trading company. Software and IT activities carry no MISA minimum, and for most service activities the capital is what the business plan needs.

When does the capital have to be paid in?

Article 158 has the partners confirm in the articles that their contributions are fully paid, so plan the money before signing. Some activities and banks ask for proof of deposit, and we line that up with you.

Can capital be paid in kind?

Yes. The Companies Law allows contributions in kind, valued by an accredited valuer and recorded with the articles (Articles 158 and 159). Cash is simpler for a new foreign-owned LLC, and banks find it easier to verify.

Can I lend money to my LLC instead of adding capital?

Yes. A shareholder loan is common for working capital. Interest paid abroad can carry withholding tax, so agree the terms with your accountant first.

How do I take profit out of the LLC?

As dividends, approved by the shareholders after the accounts are closed. Dividends paid to non-resident shareholders carry 5% withholding tax, which a treaty may reduce.

Are there limits on sending money out of Saudi Arabia?

Article 6 of the Investment Law’s Implementing Regulations gives investors the right to transfer investment funds into and out of the Kingdom without delay. Your own country may have rules on money going out, such as State Bank of Pakistan rules or India’s overseas investment (ODI) rules, which we flag at the start.

What decides the cost of setting up a Saudi LLC?

The activity sets the Saudi government fees, and the number of shareholders and the countries that issued their papers set the notary, apostille and translation costs. Our part is a fixed fee for the option you choose, with no hidden costs. We quote each case in writing.

Does the LLC need an office?

A Saudi LLC needs a National Address in every case. Whether it needs leased premises depends on the activity, municipal licensing and the bank. We tell you at the planning stage.

Can the LLC own property?

Possibly, but check first. MISA’s 2026 Investor Guide (13th edition) no longer lists the old MISA approval for company-owned offices, warehouses or staff housing. We check the current rules for your property and city before you commit to a purchase.

03Running the LLC

Who manages a Saudi LLC?

One or more managers named in the articles. A manager can be a shareholder or an outsider and can be a foreign national.

Does the manager have to live in Saudi Arabia?

No law requires it, but banks, GOSI and Qiwa work far more smoothly with a resident manager or signatory. Most owners appoint one once the company starts hiring.

Can I be the general manager myself?

Yes. Many owners take the role and are sponsored by their own LLC for residency. See investor visa and Iqama.

Can the LLC carry on several activities?

Yes, if each is open to foreign investment and any sector licence is obtained. We group related activities so you don’t need a new registration to grow.

How do I add an activity later?

Through MISA’s activity amendment service, which lists no fee. An open activity updates immediately; a restricted one takes an estimated five working days. The CR is then updated to match.

When can the LLC hire staff?

Once it is registered with GOSI and has an active Qiwa file. See GOSI, Qiwa and Muqeem.

When can the LLC open a bank account?

After the CR, articles, National Address and usually the ZATCA number. See corporate bank account opening.

Does the LLC need audited accounts?

Usually. Article 18 of the Companies Law requires a licensed auditor, and Article 19 exempts micro and small companies unless their articles or another law require one. Your accountant confirms which side you fall on; we plan for an audit until they do.

Can the LLC be converted to another company type?

Yes. Article 220 allows conversion, for example to a joint stock company, by a decision taken like an amendment to the articles, once the new form’s conditions are met. It is uncommon at the start.

04Timeline and steps

How long does it take to form an LLC in Saudi Arabia?

Usually a few weeks once your documents are legalised and translated, which is the slow part. MISA estimates ten working days for a complete registration. One client reported 47 days from start to finish, and two of our files for Pakistani shareholders went from MISA registration to CR in 25 days and in 114 days. That spread is why we don’t promise a date.

Do I need to travel to Saudi Arabia?

Not for the registrations. A power of attorney covers MISA and the CR, and our guide to forming a Saudi company from Pakistan walks through that remote route. Banks and residency usually need a visit, and we tell you in advance.

What is the first step?

A call or WhatsApp message about what the company will do and who will own it. You then get a written plan with activity codes, structure, documents, timeline and price.

What order do the steps go in?

Plan, documents, MISA, articles and CR, National Address and Chamber, ZATCA, GOSI and Qiwa, bank account, then residency.

How is the trade name chosen?

The trade name is reserved with the Ministry of Commerce under the Trade Names Law in force since 3 April 2025, which also allows English letters and numbers. We send options before reserving one.

What slows an LLC formation down?

Most delays we see are document mistakes: names spelled differently across documents, registry extracts that are too old, the wrong legalisation route, and an activity that needs an extra approval.

Can the government steps be speeded up?

No one can legitimately pay a Saudi ministry to go faster. Time is saved by filing a complete, consistent file and answering queries the same day.

What do I receive at the end?

The MISA registration, CR, articles, National Address and Chamber records, your ZATCA, GOSI and Qiwa registrations if you took the full route, and a calendar of every yearly filing.

Can you take over an LLC that is half done?

Yes. We audit what was filed, list what is missing and quote to finish it.

05LLC documents

What does a company shareholder provide?

A recent registry extract or certificate of incorporation, its articles, its last year’s financial statements, a board resolution approving the LLC and a power of attorney.

What does an individual shareholder provide?

A passport, proof of address, a bank reference or statement, and a power of attorney.

Do the papers need an apostille?

If your country is in the Apostille Convention, yes: Saudi Arabia joined with effect from 7 December 2022, so an apostille replaces the embassy stamp for member countries such as the UK, India and Pakistan. Papers from non-members such as the UAE go through the Saudi embassy. See document attestation and apostille.

Are the articles of association in Arabic?

Yes. The Saudi articles are prepared in Arabic, and we give you an English version for your records.

What should the board resolution say?

That the company invests in a Saudi LLC, the capital and shareholding, the manager’s name and powers, and who signs. We draft it for your board.

What if my company has no accounts yet?

Tell us before preparing anything. Investing as an individual, or through a group company with accounts, is often the cleaner route.

Can shareholders sign in different countries?

Yes. Each shareholder signs where they live, and each paper follows the authentication route of the country that issued it.

Can one document set serve MISA, the CR and the bank?

Yes, if it is recent. We order enough certified copies at the start.

06Tax for LLC owners

What tax does a 100% foreign-owned LLC pay?

Corporate income tax at 20% of its taxable profit, VAT once registered, and withholding tax on some payments abroad.

What if a Saudi partner owns part of the LLC?

Profit is split by ownership: the Saudi or GCC share pays zakat at 2.5% of its zakat base, and the foreign share pays 20% income tax. The worked example above shows it line by line.

Is tax due when I take dividends abroad?

Yes, 5% withholding on dividends paid to non-resident shareholders, often reduced by a tax treaty with a residency certificate.

Does my home country tax the dividends too?

Often, with credit for Saudi tax under a treaty or domestic rules. Your home adviser confirms how; we give them the Saudi figures.

When is the first tax return due?

Within 120 days of the end of the LLC’s first financial year, with audited statements.

Does a new LLC have to register for VAT straight away?

Only when taxable sales pass SAR 375,000 in 12 months, or are expected to. Voluntary registration is open from SAR 187,500.

Is there a tax holiday for new LLCs?

Not a general one. Special economic zones and the RHQ programme have their own incentives, with their own conditions.

Who files the LLC’s returns?

A Saudi accountant or auditor. We set up the registrations and the calendar they work from.

Where the facts come from

Sources for this page

We opened each of these before quoting them. Rules move, so check the current version before you act.

Ministry of Investment (MISA)Investor Guide, 13th edition (2026)misa.gov.sa ↗
Bureau of Experts (official translation)Companies Law, Part 6: limited liability companiesmisa.gov.sa ↗
MISAImplementing Regulations of the Investment Lawmisa.gov.sa ↗
ZATCAGeneral Guideline for Withholding Tax (May 2026)zatca.gov.sa ↗
HCCHApostille Convention membershcch.net ↗

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