LLC Formation Fees in Saudi Arabia 2026: The Complete Guide to Costs and Government Fees
18 minutes ago
Are you planning to establish a Limited Liability Company (LLC) in Saudi Arabia and want to know the exact fees and costs before you start?
The Limited Liability Company (LLC) is the most common business entity in the Kingdom, for both citizens and foreign investors. And while LLC formation fees in Saudi Arabia are among the lowest compared to other company types, the real cost goes far beyond the commercial registration fee alone. It includes several elements that can inflate your budget if you’re not aware of them in advance.
In this comprehensive guide from HR 360 Solutions, we break down in detail: the official fees announced by the Ministry of Commerce, trade name reservation fees, Chamber of Commerce fees, foreign investor costs, and recurring annual fees — with estimate tables that help you build an accurate budget for your project.
- A complete table of all LLC formation fees for 2026.
- Formation costs for Saudi citizens vs. foreign investors.
- Recurring annual fees that must be factored into your business plan.
- Practical tips to legally reduce your formation costs.
- Direct answers to the most common questions about formation costs.
Want an accurate estimate of your company’s formation cost based on your activity and location?
The Quick Answer: How Much Are LLC Formation Fees in Saudi Arabia?
In short, the basic government fees for establishing a limited liability company in Saudi Arabia are around SAR 1,700 only (SAR 1,200 commercial registration issuance fee + SAR 500 publication fee), plus trade name reservation fees ranging between SAR 200 and SAR 500.
As for the actual total cost of establishing and operating the company, it typically ranges between:
- For Saudi citizens: SAR 5,000 to SAR 15,000 including government fees, licenses, and premises.
- For foreign investors: SAR 10,000 to SAR 25,000 and may increase depending on the activity and Ministry of Investment (MISA) requirements.
The table below shows the official LLC formation fees as announced by the Ministry of Commerce:
| Government Item | Official Fee (SAR) | Notes |
|---|---|---|
| Trade name reservation (Arabic) | 200 | Mandatory before formation via the Ministry of Commerce platform |
| Trade name reservation (English) | 500 | Optional; an Arabic-only name is sufficient |
| Commercial Registration issuance fee | 1,200 | Paid once at formation |
| Publication fee | 500 | For publication in the official gazette (Umm Al-Qura) |
| Basic total | 1,700 – 2,000 | Including trade name reservation |
LLC Formation Fees in Detail (Item by Item)
To understand the cost of setting up a limited liability company in Saudi Arabia accurately, you must distinguish between three categories of costs: direct government fees, administrative and legal costs, and business operation requirements. Here is a detailed explanation of each:
1. Trade Name Reservation Fee
This is the first fee you pay on your formation journey, completed through the Ministry of Commerce platform. An Arabic name costs SAR 200, while adding an English name costs SAR 500. We recommend choosing a unique Arabic name that reflects your activity to reduce costs, while complying with the naming requirements set out in the Companies Law.
2. Commercial Registration Issuance Fee
This is the main fee in the formation process, amounting to SAR 1,200 for a limited liability company according to the fee schedule approved by the Ministry of Commerce. The certificate is issued electronically through the Saudi Business Center and includes the company’s data, activity, address, capital, and partners.
3. Publication Fee
The company must publish its formation in the official gazette (Umm Al-Qura) for a fee of SAR 500. Publication happens automatically through the platform after the commercial registration is issued and requires no additional action from you.
4. Chamber of Commerce Fees
Membership in the Chamber of Commerce in your region is mandatory, with annual fees typically ranging between SAR 1,000 and SAR 1,200 depending on capital size and city. These are recurring fees, renewed annually along with the commercial registration.
5. Capital (Not a Fee, But a Financial Commitment)
Under the new Saudi Companies Law, there is no minimum capital requirement for Saudi citizens in most activities, provided it is sufficient for the licensed activity. In practice, the bank may require a portion of the cash capital to be deposited in an “under formation” account before the commercial registration is issued.
6. Ministry of Investment (MISA) Fees — Foreigners Only
If one of the partners is a foreign national, an investment license from the Saudi Ministry of Investment (MISA) is required, with a fee of around SAR 2,000 per year, in addition to attestation fees for the company’s documents from the home country (commercial registration, formation contract, signing authorities), which vary by country.
Total LLC Formation Cost: A Realistic Estimate by Scenario
After adding non-government costs (premises, licenses, attestation), the cost of setting up a limited liability company becomes as follows:
| Item | Saudi Citizen | Foreign Investor |
|---|---|---|
| Trade name reservation | SAR 200 – 500 | SAR 200 – 500 |
| Commercial registration & publication fees | SAR 1,700 | SAR 1,700 |
| Chamber of Commerce fees (first year) | SAR 1,000 – 1,200 | SAR 1,000 – 1,200 |
| Ministry of Investment (MISA) license | — | ≈ SAR 2,000 |
| Document attestation (varies by authority) | SAR 300 – 500 | SAR 1,000 – 3,000 |
| Electronic seal and national address | SAR 200 – 400 | SAR 200 – 400 |
| Office lease (first payment) | SAR 3,000 – 8,000 | SAR 3,000 – 8,000 |
| Municipal license and sub-activities | SAR 500 – 1,500 | SAR 500 – 2,500 |
| Estimated total | SAR 5,000 – 15,000 | SAR 10,000 – 25,000 |
LLC Formation Fees for Foreign Investors: Key Differences
If you are a foreign investor, LLC formation fees in Saudi Arabia include two additional items that citizens do not pay:
- Ministry of Investment (MISA) license: around SAR 2,000 per year, requiring the company’s original documents attested by the Saudi embassy in the home country.
- Attestation and legalization: formation contracts, board resolutions, and power of attorney documents require legalization, costing between SAR 1,000 and SAR 3,000 depending on the country.
However, the Kingdom allows foreign investors 100% ownership in most sectors, making the Limited Liability Company (LLC) the first choice for entering the Saudi market. Foreign residents in regular status can also establish a sole proprietorship under specific conditions — see our guide on establishing a sole proprietorship in Saudi Arabia to compare your options.
Recurring Annual Fees After Formation
One of the most common mistakes is focusing only on formation fees while ignoring the recurring annual costs that must be built into the business plan:
- Commercial registration renewal: SAR 1,200 per year.
- Chamber of Commerce fees: SAR 1,000 – 1,200 per year.
- Ministry of Investment license (for foreigners): around SAR 2,000 per year.
- Municipal license: annual fees varying by activity and premises size.
- Accounting, Zakat, and tax compliance: costs of filings and periodic audits.
We recommend allocating an annual budget of between SAR 4,000 and SAR 7,000 as a minimum to cover recurring government fees and regulatory obligations. You can also review our guide on how to register with ZATCA to understand your tax obligations.
How to Reduce Your LLC Formation Fees? (6 Practical Tips)
You can reduce the cost of setting up a limited liability company legally through the following steps:
- Complete the formation electronically yourself: the Ministry of Commerce platform allows full formation without additional intermediary fees.
- Choose an Arabic-only trade name: saving SAR 300 compared to a bilingual name.
- Minimize registered activities: each additional activity may require extra licensing and fees.
- Compare cities: office rents and municipal fees in secondary cities are significantly lower.
- Form with a single partner: a single-member company reduces attestation documents and contracts.
- Consult before formation: selecting the correct activity from the start saves you amendment fees later. Contact us to get it right the first time.
Want to establish your company at the lowest possible cost and without mistakes that could cost you later?
LLC Formation Steps in Order
After setting your budget, the formation process is completed within a few business days through the following steps:
- Reserve the trade name via the Ministry of Commerce platform.
- Draft the formation contract and have it electronically attested.
- Issue the commercial registration and pay the fees (SAR 1,200).
- Publish in the official gazette (fee of SAR 500).
- Join the Chamber of Commerce and obtain your registration.
- Open the bank account and deposit capital as needed.
- Register with government authorities: ZATCA, General Organization for Social Insurance (GOSI), and the Qiwa platform.
- Obtain final licenses: municipal license and activity licenses.
For full details on each step, see our complete guide to company formation in Saudi Arabia.
Is the LLC the Cheapest Company Type?
| Company Type | Commercial Registration Fee | Publication Fee | Minimum Capital |
|---|---|---|---|
| Limited Liability Company (LLC) | SAR 1,200 | SAR 500 | Not specified |
| Partnership Company | SAR 1,000 | SAR 500 | Not specified |
| Closed Joint Stock Company | SAR 1,600 | SAR 500 | SAR 500,000 |
| Simplified Joint Stock Company | SAR 1,600 | SAR 500 | None |
As shown in the table, LLC formation fees are nearly identical to partnership company fees, but the LLC offers greater flexibility and limited liability that protects your personal assets. If you’re considering other options, check out our guide on establishing a joint stock company for comparison, or learn about the difference between an establishment and a company in Saudi Arabia.
How Can HR 360 Help You Establish Your Company?
At HR 360 Solutions, we provide an end-to-end service from consultation to full operation, with complete transparency in LLC formation fees and no hidden charges:
| Service | What We Provide |
|---|---|
| Activity study and pricing | An accurate estimate of fees and costs before you start. |
| Name reservation & commercial registration | Completing all government procedures electronically. |
| Contract drafting | Drafting the formation contract and articles of association to protect your interests. |
| Foreign investor licensing | End-to-end MISA procedures and document attestation. |
| Government registration | ZATCA, GOSI, Qiwa, and the national address. |
| Post-formation | HR management, payroll, and regulatory compliance. |
Frequently Asked Questions About LLC Formation Fees
How much does it cost to set up an LLC in Saudi Arabia in 2026?
The basic government fees are around SAR 1,700 (SAR 1,200 commercial registration fee + SAR 500 publication fee), plus SAR 200 – 500 for trade name reservation. The actual total cost ranges between SAR 5,000 and SAR 15,000 for citizens, and between SAR 10,000 and SAR 25,000 for foreign investors.
Is there a minimum capital requirement for an LLC?
There is no minimum capital requirement under the new Companies Law for most activities for Saudi citizens, provided it is sufficient for the licensed activity. Foreign investors are subject to Ministry of Investment requirements depending on the activity.
What is the commercial registration renewal fee for an LLC?
The commercial registration renewal fee is SAR 1,200 per year, plus annual Chamber of Commerce fees ranging between SAR 1,000 and SAR 1,200 depending on capital and city.
How much does trade name reservation cost in Saudi Arabia?
Trade name reservation costs SAR 200 for an Arabic name and SAR 500 for an English name, and is completed through the Ministry of Commerce platform before formation.
Do government fees include VAT?
Yes, government service fees are subject to 15% Value Added Tax, so it is advisable to add this percentage when calculating your total budget.
How much does it cost for foreigners to set up an LLC?
Foreigners pay a Ministry of Investment (MISA) license fee of around SAR 2,000 per year, in addition to company document attestation costs from the home country, bringing the total cost between SAR 10,000 and SAR 25,000.
What is the cheapest way to set up an LLC?
Complete the formation electronically yourself, choose an Arabic-only trade name, minimize registered activities, compare cities, and consult a specialist to select the right activity from the start.
Can a single person form an LLC?
Yes, the Saudi Companies Law allows the formation of a limited liability company by a single person, whether a citizen or a foreign investor.
Start Your LLC Formation with HR 360
Knowing the LLC formation fees is the first step — and the most important one is getting the formation right the first time. The HR 360 team supports you from free consultation to full operation, with a clear budget and no surprises.
Book your consultation now and receive an accurate cost estimate for your project within 24 hours.