The Cost of Setting Up a Company in Saudi Arabia 2026: A Real Fee Guide, No Surprises | Nova Legal

How Much Does It Cost to Set Up a Company in Saudi Arabia in 2026? A Summary of Official Fees

Company formation cost is a cumulative set of fees, not a single figure — full registration expenses include the commercial registration, publication in the "Aamali" gazette, and chamber of commerce membership. Here's the documented summary, detailed further in the sections below:

One key distinction the new regulatory framework introduced deserves attention: there is no minimum capital requirement for an LLC under the Companies Law (M/132) — the partners set the capital themselves in the articles of association, unlike a joint stock company, which remains subject to a minimum issued capital. The declared capital doesn't add to the fees; it later determines your chamber of commerce membership tier.

Official Company Formation Fees From the Ministry of Commerce: The Documented Figures

The Ministry of Commerce publishes its fees through the Saudi Business Center platform. The "LLC Formation" service confirms SAR 1,200 for registration and SAR 500 for publication, plus 15% VAT, completed entirely online, with the application also opening a file with HR, registering with Zakat, Tax and Customs, Social Insurance, and subscribing to the approved business address with Saudi Post.

• Commercial registration: SAR 1,200 for an LLC, SAR 1,000 for a general or limited partnership, and SAR 1,600 for a joint stock or simplified joint stock company.
• Publication fee: SAR 500, paid to complete publication of the articles of association in the Aamali gazette.
• Built-in regulatory network: formation automatically opens the required regulatory files (HR, Zakat/Tax/Customs, Social Insurance) and enrolls the business with the relevant chamber of commerce based on location.

The service requires that the partner be at least 18 years old, not a government employee, and not hold a struck-off or suspended commercial registration. If one of the partners is a government entity or an endowment (waqf), a legal instrument must be submitted, and banking activities require preliminary licensing from the central bank.

The New Commercial Register Law (M/83): What Changed in 2026 Registration Costs?

The new Commercial Register Law was issued under Royal Decree No. (M/83) dated 19/3/1446H and Council of Ministers Resolution No. (237) dated 14/3/1446H, restructuring the rules governing commercial registration. The key changes affecting formation costs:

• A single register: one commercial register now covers the entire Kingdom, with regional sub-registers abolished and a five-year grace period for existing holders to correct their status.
• The traditional annual renewal is gone: the optional annual renewal mechanism has been replaced by an electronic annual data confirmation every 12 months. Delays lead to the register being suspended after 90 days and struck off after a year.
• Linkage to financial institutions: opening a bank account linked to the business is now mandatory, tightening auditing standards and prohibiting signing on personal accounts for business purposes.
• Warning before penalty: a grace period is now given to correct non-serious violations before fines are imposed, replacing the immediate enforcement that previously applied.

These changes make commercial registration costs more predictable: instead of periodic renewal fees, businesses are required to keep their data updated electronically and stay linked to their bank accounts — which calls for a sound accounting structure, best supported by legal counsel to ensure the formation is done correctly the first time.

Chamber of Commerce Fees and Trade Name Reservation: The Most Overlooked Cost Details

Once the commercial registration is issued, fees many entrepreneurs don't factor into their company formation cost start to appear — these are the closest thing to the "surprises" this guide aims to avoid:

Trade name reservation: the first step before formation, completed electronically through the Ministry of Commerce. Fees vary depending on the name category (Arabic, English, or compound) and start from a few hundred riyals. Confirm the name doesn't overlap with a reserved name or a trademark registered with the Saudi Authority for Intellectual Property before paying.

Chamber of commerce membership: a mandatory annual subscription calculated by the chamber's approved membership tier, ranging from around SAR 200 for newly established companies up to thousands of riyals for larger-capital businesses (affected by capital and headcount). Since each chamber sets its own regulations by region, the exact figure appears when you complete the application.

There are also ongoing, non-official costs: setting up and registering the office under a national address, municipal approvals and sector-specific licenses depending on the activity, opening the business bank account, and contracting a licensed accountant. These vary by activity, so they belong in your operating budget rather than the direct formation cost.

The Cost of Setting Up an LLC: A Documented, Worked Example

Let's work through a realistic example for a Saudi entrepreneur setting up an LLC, based on the published official fees:

• Trade name reservation: fee depending on the name category (starting from around SAR 200).
• Commercial registration: SAR 1,200.
• Publication fee in the Aamali gazette: SAR 500.
• Annual chamber of commerce subscription: scales with tier and capital (from a few hundred to a few thousand riyals).
• 15% VAT on applicable fees: added to the figures above at payment.

In other words, basic LLC registration expenses start from around SAR 1,700 before tax and chamber fees — a modest figure, especially since the new law no longer imposes a minimum capital requirement. What actually drives up the real cost isn't the government fees — it's procedural errors that force a resubmission.

This is where professional legal preparation earns its value: studying the business idea, choosing the right company type, drafting and notarizing the articles of association, and managing the submission — turning formation into a process that succeeds on the first attempt, through Nova Legal's company formation legal services. You can also review the full statutory steps in our guide to Setting Up a Company in Saudi Arabia: The Complete Legal Steps.

How Much Does It Cost for a Foreign Investor to Set Up a Company in Saudi Arabia?

A foreign investor starts on a different path, even though the final fees converge closely. Under the new Investment Law, which set up registration in a national investor register, registration with the Ministry of Investment is required before any investment, after which the investor applies for the "company formation under investment registration" service — which takes 72 hours, according to the Ministry of Commerce.

• 100% foreign ownership: non-Saudis are permitted to wholly own their business in non-restricted activities, without requiring a Saudi partner in most sectors.
• Government fees: the same formation fees above apply — SAR 1,200 for an LLC or SAR 1,600 for a joint stock company, SAR 500 for publication, plus VAT and investment registration with the Ministry of Investment.
• Translation and authentication: additional costs apply for translating and authenticating the parent company's documents and its commercial registration from its home country, which varies by language and number of documents.
• Local requirements: the same office and sector-specific licensing requirements that apply to local companies must also be met.

The bottom line: the government cost to launch is comparable to a local company, but the heaviest burden for a foreign investor falls in the pre-formation phase — correct investment registration, choosing the right structure, and preparing a documentation file that gets accepted on the first submission. This is where the right lawyer makes the difference. Explore the full path in our guide to Company Formation in Saudi Arabia for Foreign Investors or through our legal services for foreign investors.

An increasing number of investors are aware that investment registration fees are paid upon completing the application, at the value shown on the official platform. Our practical advice: get the exact figure from your official payment notice, don't rely on numbers circulating elsewhere, and confirm with a consultant before submitting.

Legal Consultation Prices in Saudi Arabia: Comparing Nova Legal's Three Packages

Company formation cost isn't complete without accounting for legal advice and documentation — the founding contract and drafting work are a real part of registration expenses, with prices ranging from a few hundred riyals to tens of thousands for institutional packages. Nova Legal offers three packages covering the most common paths at transparent prices:

Choosing between packages is a matter of stage, not price — full details for each package are on their respective pages linked in the table. If you're operating through an existing company and need an expanded engagement or ongoing structuring, our company contract request page may be the better fit.

Frequently Asked Questions About the Cost of Setting Up a Company in Saudi Arabia