For Saudi Owners
SAR 1,200 commercial registration and SAR 500 publication, plus 15% VAT, with no minimum capital in most activities.
A Saudi advisory house that settles company formation cost before you start
Company Formation Cost in Saudi Arabia: Fees and Budget
The Company Formation Cost in Saudi Arabia for an LLC is SAR 1,200 for the commercial registration and SAR 500 for publication at the Ministry of Commerce, plus 15% VAT. There is no minimum capital for an LLC in most commercial and service activities. What changes the total is the preparation cost — driven by activity, licensing, and number of partners.
SAR 1,200Commercial registration (LLC)
SAR 500Commercial registration
No min. capitalLLC, most activities
VariablePreparation cost
We separate the fixed official fees from the variable preparation cost, so your budget reflects your real activity and licensing — not a guess.
Official Fees & Capital
What you actually pay to form a company.
The official fees are fixed and published. Capital depends on the entity type you choose. Here is the full picture.
| Item | Amount | Notes |
|---|---|---|
| A. Commercial registration — LLC | SAR 1,200 | Official Ministry of Commerce fee |
| A. Publication fee | SAR 500 | Publication of the formation contract |
| A. VAT | 15% | Applied to the official service fees |
| A. Commercial registration — Simplified JSC | SAR 1,600 | Plus SAR 500 publication and 15% VAT |
| A. Commercial registration — partnership | SAR 1,000 | General or limited partnership, plus SAR 500 publication and 15% VAT |
| B. Activity-specific regulatory fees | Variable | Set by the competent authority for the licensed activity |
| C. Minimum capital — LLC | None | No minimum in most commercial and service activities |
| C. Minimum capital — Simplified JSC | Set in the bylaws | The joint-stock minimum does not apply (Companies Law, Article 139) |
| C. Minimum capital — Joint-stock company | SAR 500,000 | At least a quarter paid up at incorporation (Companies Law, Article 59) |
| D. Professional & advisory fees | Variable | Not a government fee |
| E. Operating setup costs | Variable | Office, national address, and platform activation |
Why Totals Differ
The fee is fixed — the total is shaped by your activity.
The Ministry of Commerce fees — SAR 1,200 commercial registration and SAR 500 publication, plus 15% VAT — are the same for everyone. The reason two companies pay different totals is not the registration — it is the regulated licensing the activity requires, the formation agreement, and the number of partners. We map these before you commit so there are no surprises.
- ◆ If the activity is regulated by the Saudi Central Bank, the Capital Market Authority, or the Insurance Authority, that regulator's licence is required and carries its own fees.
- ◆ More partners means a more detailed formation agreement.
- ◆ A foreign investor adds Ministry of Investment fees for investment registration.
For Foreign Investors
Add the Ministry of Investment fees for investment registration, on top of the official registration and publication fees.
For Budgeting
Treat official fees and preparation cost as two separate lines so the budget reflects reality.
Plan the rest of the formation decision.
The overall path, the entity types, the foreign-investor route, and the commercial registration.
Common questions about company formation cost.
Direct answers on official fees, capital, and what changes the total.
How much does it cost to form an LLC in Saudi Arabia?
Official LLC fees at the Ministry of Commerce are SAR 1,200 for the commercial registration and SAR 500 for publication, plus 15% VAT. There is no minimum capital for an LLC in most commercial and service activities.
Is there a minimum capital to register a company in Saudi Arabia?
There is no minimum capital for an LLC or a single-person company in most activities. The Saudi Companies Law does not impose on a Simplified Joint-Stock Company the minimum-capital requirement applicable to a Joint-Stock Company; its issued and paid-up capital are specified in its bylaws. A joint-stock company requires SAR 500,000, with at least a quarter paid up at incorporation.
What additional costs should I budget for?
Beyond the official fees, budget for activity-specific licensing, the formation agreement preparation, the national address, and the company bank account. These vary by business activity and number of partners.
Does a foreign investor pay more?
A foreign investor also pays the Ministry of Investment fees for investment registration, and any fees the competent authority charges for an activity-specific licence. These are in addition to the Ministry of Commerce commercial registration and publication fees.
Why does the total cost differ between companies?
The official fees are fixed and known. What changes the total is the business activity, the licensing required, the number of partners, and the scope of agreement preparation — not the registration fee itself.
Cost Estimate
Get a clear cost estimate before you commit.
A focused review of your activity, entity, and licensing to turn the variable preparation cost into a clear number.