How to Set Up a Company in Saudi Arabia as a Foreigner (2026)

Saudi Arabia's foreign investment framework

Saudi Arabia has substantially reformed its foreign investment rules under Vision 2030. The Ministry of Investment (MISA — formerly SAGIA) issues investment licences to qualified foreign investors and manages the company registration process.

• Key features:
• Foreign company ownership: 100% foreign ownership is now permitted in many sectors (previously required Saudi partnership)
• 20% CT for foreign-owned entities
• 0% CT for entities owned entirely by Saudi nationals (subject to Zakat at 2.5% of Zakat base instead)
• VAT: 15% (raised from 5% in 2020)
• Regional HQ programme: MISA requires multinational companies wanting to access Saudi government contracts to establish their regional headquarters in Saudi Arabia by 2024

Restricted sectors: Some sectors remain restricted or require Saudi partnership: certain defence activities, oil and gas upstream (Aramco joint ventures), media (in some cases), and others. Check the Foreign Investment Law negative list via MISA.

---

Step 1: Obtain a MISA Investment Licence

Before any company can be registered, the foreign investor must obtain an Investment Licence from MISA.

• Required:
• Passport of all shareholders
• Foreign company registration documents (if the investor is a corporate entity) — certified and apostilled
• Letter of intent describing the proposed business activity in Saudi Arabia
• Business plan
• Financial statements of the investing company (2–3 years)
• No-criminal-record certificate

Apply via: MISA's online portal (sagia.gov.sa / misa.gov.sa)

Processing: Straightforward applications: 5–15 business days. Complex applications: longer.

Fee: Varies by business activity and investment size — verify current schedule at MISA.

---

Step 2: Register the company at the Ministry of Commerce (MoC)

After MISA licencing, register the company with the Ministry of Commerce via its online portal (mc.gov.sa):

Structure: The LLC (Limited Liability Company / Sharikat Dhaat Mas'ouliyya Mahdouda) is the most common structure for foreign investors.

• Minimum capital: Sector-dependent. MISA sets minimum capital requirements based on business activity:
• General trading: SAR 7,000,000 (significant)
• Professional services: SAR 500,000 (common threshold)
• Industrial/manufacturing: varies
• Retail: SAR 30,000,000 for foreign retailers (significant)

For many business types, the practical minimum is SAR 500,000 (~USD 133,000). Verify your specific activity's requirements.

---

Step 3: Additional registrations

• General Authority of Zakat, Tax, and Customs (ZATCA): Register for CT and Zakat purposes
• GOSI (General Organization for Social Insurance): Register for employee social insurance
• Ministry of Human Resources: Register for labour matters; obtain establishment account on Absher platform
• Chamber of Commerce: Join the local chamber (required in practice for various licences and dealings)

---

Step 4: Banking

• Major Saudi banks — Al Rajhi, Saudi National Bank (SNB), SABB, Riyad Bank, Banque Saudi Fransi — offer corporate accounts. Account opening for a foreign-owned LLC requires:
• MISA licence
• MoC registration certificate (Commercial Registration / CR)
• All director and shareholder documentation
• VAT registration certificate (once obtained)
• An initial deposit (varies by bank; typically SAR 5,000–50,000)

Timeline: 4–8 weeks for account opening at most banks.

---

Real cost (Year 1)