Establishing Companies In Saudi Arabia 2022

Establishing companies in Saudi Arabia is the beginning of entering into a profitable business world in one of the world’s best countries in terms of ease of business success.

Whether you are a Saudi who wants to start a profitable project in your home country or a foreigner who wants to start an investment within Saudi Arabia, your first real step following the plans and studies is to start establishing your company.

Establishing Companies

  • The establishing companies process is not difficult at all, but it requires you to know the types of companies to choose the best ones for you, and then provide some documents necessary for the establishment process, and finally some little effort and money to establish the company and pay the fees.
  • Below are the types of companies in Saudi Arabian law, the necessary documents to establish a company in Saudi Arabia, and the steps to establish a company in Saudi Arabia.
  • We also inform you of the steps of establishing a limited liability company, as it is the most widespread type of company in Saudi Arabia, as well as how to establish companies for foreigners and finally the prescribed fees.

Types of companies in Saudi law

There are several types of companies that want to start a company in Saudi Arabia to choose from, as no company is approved or registered except in the case of taking a type or form of the following:

  • Limited liability companies with a minimum of two partners and no minimum capital.
  • Solidarity companies, the partners of which are natural persons.
  • A Simple Recommendation Company.
  • Shareholding companies, in which the company has equal shares, can be exchanged. Their capital is not less than half a million Saudi riyals, and the capital paid at the time of incorporation is required to be no less than one quarter.
  • one person’s company.

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Required Paperwork To Establish Companies In Saudi Arabia

As for the paperwork to be submitted upon the establishment of a company in Saudi Arabia, it is certain that each form of company is unique to one or more of the other forms, but in any event, you will have to submit the following papers:


  • Copies of personal cards or passports for each partner, or at least the applicant or owner of the company.
  • The company’s founding contract, which is concluded between the partners, clarifies all details regarding each partner’s share and responsibilities, as well as all information about the company manager and his terms of reference, and must be signed by all of them.
  • The bank account registered in the name of compan
  • The company’s headquarters or administrative statements, showing the address, the engineering and Crokie fee, the property contract, or the rental of the premises
  • Demonstrate the company’s ownership of all tools, equipment, or properties registered in the name of the company or used by the company to complete its functions
  • Company insurance contracts for property and employees.

Company Establishment Process

When establishing a company in Saudi Arabia, follow the following important steps:

  • Specify the type of company. As I mentioned to you in the first paragraph, you must choose some form of company.
  • After that, you will have to determine the company’s activity. It is self-evident that no activity will start until you know its purpose and activity.
  • Then comes the role of choosing the name of the company. You need to find a name for the company that is indicative of its activity or contains the name of the partner with the largest share, as it must be an Arabic or expressive name.
  • Then select the company’s capital, and detail each partner’s share.
  • Now collect partners, hence enlist a lawyer, consult in the form of the incorporation contract, choose the appropriate formula, after which each partner will sign the contract, and work to ensure that each partner has a replica of the contract.
  • After the conclusion of the partnership and incorporation contract, the role of registration of the company in the industrial commercial registry and obtaining the approval of the competent authorities, and the publication of the company’s name in the official gazette.

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Limited liability companies are companies with an independent legal entity and may be between individuals or companies, whether foreign or Saudi, provided that the partners or shareholders are subject to Saudi law.

  • When a company is established in Saudi Arabia in the form of a limited liability company, the number of shareholding partners must not be less than 2 and, in any event, not more than 50.
  • Nor does it require a minimum capital of the company, but it authorizes limited liability companies to appoint more than one director of the company, and these companies may not offer or trade their shares or approach their capital in any way.
  • The contract must also be signed by all partners. The contract will be examined by the Committee for the Examination of Applications for the Establishment of Companies in Saudi Arabia. All information about the company’s headquarters will also be provided.
  • The system of limited liability companies should include the following: the company’s management method or plan; the number of managers and their respective powers; the distribution of profits and losses to partners; and the company’s liquidation procedures and rules.
  • You will have to submit the so-called occupation document, which is obtained from civil status, and the applicant must be present on his/her own and must obtain an official agency from all partners.
  • The application is submitted to the Ministry of Commerce and Industry, after which the trade name is reserved, the incorporation contract is submitted, and it is attached to the photographs of the identity cards of all partners.
  • Obtaining the commercial registry and approval from the notary.
  • Register the company in the interest of zakat, and insure the company, its property and employees.
  • One of the most important requirements is that the company be advertised in the Official Gazette.

Company Registration In Saudi Arabia

If you do not hold Saudi citizenship and want to establish a company in Saudi Arabia, there are certain conditions and procedures stipulated by Saudi investment laws.

At the outset, you must process the following documents:

  • a transcript of the company’s commercial registry, which must be authenticated by the external or embassy.
  • The Embassy also documented four duplicate photographs of the company’s owners’ identity cards.
  • a copy of the company manager’s identity card.
  • a document of good conduct and behaviour for both the owners and the manager.
  • certification or document of the company’s bank account.
  • A copy of the contract of ownership or lease of the company’s headquarters
  • company insurance contract.
  • After processing these documents, you must go to the Ministry of Commerce and Investment of the Kingdom of Saudi Arabia and submit a request to book a business name for the company.
  • After obtaining the name, she applies to the Ministry for permission to open a branch.
  • It awaits approval of the company’s system, and the approval must be from the notary.
  • It then registers the company in the Kingdom’s Industrial Chamber of Commerce.
  • The company’s name must also be advertised in the Official Gazette.


However, ensure that the capital of the company is not less than SAR 100 thousand, that the applicant for the establishment of the company is not less than 5 years’ experience in the business of the company, and register the company in the interest of zakat.

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Fees for establishing a company in Saudi Arabia

When establishing a company in Saudi Arabia, you will have to pay some of the fees prescribed by the government, which are stipulated in the articles of the company’s law.

  • The cost of applying to a company is SAR 200.
  • The cost of registering the name of a limited liability company is SAR 1,200.
  • The cost of registering the name of a joint stock company is SAR 1,600.
  • The company’s registration fee in the Industrial Chamber of Commerce is SAR 2,200.
  • The publication fee in the Official Gazette is SAR 500.
  • The value-added cost is SAR 25.


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