What's the first step to start a company in Saudi Arabia?
The first step is choosing the company type—like an LLC, sole proprietorship, or joint stock company. Then, you need to reserve a trade name and begin the official registration through the government platform Meras.
Can foreigners open companies in Saudi Arabia?
Yes, they can—if they obtain a license from the Ministry of Investment (formerly SAGIA). Required documents include the foreign company’s commercial registration, financial statements, and a letter of intent. Requirements vary depending on the business activity.
How long does it take to establish a company?
If all documents are ready, it usually takes 3 to 7 business days. However, it may take longer if approvals from other government bodies are needed.
What are the costs of setting up a business?
Costs include trade name reservation, commercial registration fees, chamber of commerce fees, and any applicable licensing fees. Basic costs start around 2,000 SAR but can go higher depending on the business type.
Is a Saudi partner mandatory?
Not always. Full foreign ownership is allowed in many sectors, especially with an investor license or Saudi residency. But some activities still require partial Saudi ownership.
What documents are required?
You'll need:
Can I register a company remotely?
Yes. Thanks to Saudi Arabia’s digital transformation, you can register a company online through Meras and Nafath. Some cases may still require a local legal representative or power of attorney.
What types of companies are available?
Common options include:
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Sole Proprietorship: Owned by one person.
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LLC (Limited Liability Company): Great for small to medium businesses.
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Joint Stock Company: Suitable for large projects or IPOs.
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Partnerships: Less common and usually for family-owned or limited ventures.
What’s the difference between a sole proprietorship and an LLC?
A sole proprietorship is fully owned and liable by one person. In contrast, an LLC separates personal and business finances—liability is limited to the owner’s share in the capital.
Do I need a minimum capital?
In some cases, yes. An LLC requires at least 500 SAR. Joint stock companies require more. Some business types may have higher capital requirements depending on their classification.
Are there extra approvals for certain sectors?
Yes. Activities like healthcare, education, and transport need extra approvals from relevant authorities like the Ministry of Health or the Transport Authority. Always check the national classification of economic activities.
What comes after registering the company?
You’ll need to:
- Open a file with ZATCA (tax authority).
- Open a corporate bank account.
- Get a Chamber of Commerce certificate.
- Obtain sector-specific licenses (if needed).
- Register employees with social insurance.
Starting a company in Saudi Arabia is now easier than ever, thanks to digital transformation and increasing government support for both local entrepreneurs and foreign investors. Whether you're a Saudi national or an international investor, understanding the legal process and choosing the right business structure can save you time, effort, and set you up for success in a growing and dynamic market.
Start your business with confidence and tap into the promising opportunities in a fast-evolving business environment.
Need help with company registration or licensing?
The Sidrahub Business Services Team is here to guide you every step of the way — contact us today for a free consultation.
